FFI - Fortescue Future Industries

[Country Lad]

Fortescue Future Industries (FFI) is an UNLISTED global green energy and product company committed to producing zero-emission green hydrogen from 100 per cent renewable sources.
FFI is a developer, financier and operator investing in zero-emission resources to produce renewable energy at a scale equal to the oil and gas super majors.
FFI's vision is to make renewable green hydrogen the most globally traded seaborne energy commodity in the world.
It is not listed and included here only for discussion on their activities, so don't look for it on the ASX

 

[Country Lad]

Fortescue and Incitec Pivot in talks for Australia’s first large scale renewable ammonia plant

Fortescue Future Industries (FFI) will commence negotiations on a potential deal to convert one of Australia’s commercial-scale ammonia production facilities to run on renewable hydrogen, potentially rescuing the plant from closure after a study found the conversion technically feasible.

The FFI study found that converting the Gibson Island ammonia facility, operated in Queensland by Incitec Pivot, to using hydrogen produced from renewable energy sources rather than fossil gas would be possible.

The two companies will now undertake an engineering design study that will detail the expected cost, timing and commercial opportunities of the plant conversion, with a final investment decision expected to follow.

Incitec Pivot said that the Brisbane ammonia facility could ultimately use up to 50,000 tonnes of renewable hydrogen a year to produce more than 300,000 tonnes of green ammonia, with Fortescue constructing and operating an onsite electrolysis plant to supply the facility with renewable hydrogen.

That level of green hydrogen production would require electricity supplies from around 1,000MW of wind and solar capacity. It would allow for a complete replacement of the ammonia plant’s existing fossil hydrogen feedstock.

Last month, Incitec Pivot announced that it planned to cease manufacturing operations at the Gibson Island facility as it was unable to secure an affordable supply of fossil gas. However, the prospect of retrofitting the facility with an onsite green hydrogen supply could provide the facility with a much needed lifeline.

 

[divs4ever]

Twiggy might be just better buying out IPL , it has been a trail of disappointments since IPL started agreements with CTP

 

[Country Lad]

Twiggy might be just better buying out IPL , it has been a trail of disappointments since IPL started agreements with CTP

Probably a bit expensive at $6b for what he wants out of it. Twiggy will be in the box seat as IPL would likely go along with whatever is proposed to be able to add some value to its mature business.

 

[divs4ever]

Twiggy might run the idea past the IPL financiers first , they might have some helpful ideas

 

[sptrawler]

The problem with an established renewable company, a lot of their generation will already be contracted out, Twiggy seems to be focusing on being able to be in control of generation through to end product.
This would require sizing the renewable generation, to suit the H2 end product, as has been posted, they already have experience building a solar farm so why pay a premium for established?

 

[divs4ever]

am not so sure the 'established' would be at a premium ( i thought Twiggy was a fairly accomplished deal-maker )

am GUESSING but suspect the ( Gibson Island ) plant is tired and in need of a refurb. ( or more )

current IPL shareholders might give a better opinion of the company , i jumped ship in January 2015

and besides i thought IPL had a second QLD plant out west ( an ideal place for solar-assisted production )

but the Twiggy might be keeping to small steps at the moment ( with a potential financial storm a possible silver lining for the cautious )

 

[Country Lad]

But wait - there's more as the ad says...

Fortescue Future Industries, the green energy offshoot of iron ore billionaire Andrew Forrest’s Fortescue Metals, is investigating options to convert a New Zealand oil refinery to become a hub for renewable hydrogen production.

In the latest of a strong of green hydrogen project proposals, FFI says it has signed a memorandum of understanding with Refining NZ to study options for the conversion of parts of the Marsden Point oil refinery.

The Marsden Point oil refinery – located north of Auckland – is slated for closure in April, 2022, but has characteristics, including access to port infrastructure and established export facilities, that would make it well suited for conversion to a green hydrogen facility.

Forrest, the FFI chairman, says the project formed part of the company’s broader plan to convert fossil fuel facilities into renewable hydrogen production sites, s he is also proposing to do at Liddell in NSW.

“Green hydrogen can provide all sorts of advantages to local and export economies – and is the answer our planet needs now,” Forrest said.
“Last week we announced we would look into producing green hydrogen at a retiring coal fired power station in Australia,” he said.
“Yesterday we shared our decision to progress to the next stage converting a grey ammonia plant to green, and today we are looking to kick off something similar at Marsden Point oil refinery in New Zealand.”

Marsden Point refinery has served as New Zealand’s primary supplier of liquid fuels, including petrol, diesel and aviation fuel, but the facility is set to be downsized as Refining NZ focuses on operating the refinery as an import-only facility.

 

[sptrawler]

am not so sure the 'established' would be at a premium ( i thought Twiggy was a fairly accomplished deal-maker )

am GUESSING but suspect the ( Gibson Island ) plant is tired and in need of a refurb. ( or more )

current IPL shareholders might give a better opinion of the company , i jumped ship in January 2015

and besides i thought IPL had a second QLD plant out west ( an ideal place for solar-assisted production )

but the Twiggy might be keeping to small steps at the moment ( with a potential financial storm a possible silver lining for the cautious )

The Gibson Island plant is in a good location.

 

[Garpal Gumnut]

I don't see FFI being spun out of FMG anytime soon.

I am told there are very few synergies between Iron Ore and Hydrogen production.

The vibe within the new H2 staff is different from at the old FMG as befits a completely novel technology and fuel. Very few "old hands" from FMG will be working at FFI, apart from Twiggy. It will be all new hires with different skill-sets.

The attractive element about FFI is that it will have a chance to prosper with money from Iron Ore until H2 gets up to the stage of other alternative energies. Plus there should be incentives and tax benefits accruing to FMG.

All in all a nice combination.

gg

 

[Country Lad]

It will be all new hires with different skill-sets.

It looks like a bit of both - current skill-set plus new ones already at it.

Fortescue designs and builds its own electrolyser ahead of green hydrogen push​

FFI chairman Andrew Forrest has spoken openly about his desire to tap into the engineering expertise that exists within the Fortescue business, having previously converted a large mining haul truck to run on hydrogen, and setting a 12-month goal to produce a zero emissions ship.

 

[Dona Ferentes]

Am glad there's a thread for this, so it doesn't get lost in FMG

Fortescue Future Industries is scouting for port sites on Western Australia’s south coast near Esperance after pitching plans to local farmers to turn the region into a major green hydrogen hub.

The green energy arm of Fortescue Metals Group has signed exclusivity agreements with some farmers, and other deals are sitting on kitchen tables as the company looks to gain access to enough freehold land to build hundreds of wind turbines.

In return for giving up portions of land, farmers in one of WA’s best agricultural regions are eyeing annual fees of $15,000 or more per wind turbine plus a low-cost supply of green ammonia to fertilise their paddocks.

FFI would need to invest tens of billions of dollars to build the port, one or more desalination plants, an electrolyser, an ammonia production plant plus a network to connect hundreds of wind turbines across scores of farms

- and very much needed for the sandy, nutrient-poor soils of the Great Southern/ Esperance

 

[Country Lad]

Fortescue says first 2GW electrolyser factory will be too small, plans more​

The new head of Fortescue Future Industries, Mark Hutchinson, says the company’s first hydrogen electrolyser factory, due to come on line in early 2023, will be too small to meet the company’s hydrogen ambitions, are more manufacturing plants are planned.

The new head of Fortescue Future Industries, Mark Hutchinson, says the company’s first hydrogen electrolyser factory, due to come on line in early 2023, will be too small to meet the company’s hydrogen ambitions, are more manufacturing plants are planned.

He has an “operating” budget of more than $1 billion for the current financial year and now heads a team of more than 1,000 that is seemingly growing rapidly.

 

[mullokintyre]

According to The Australian , the Future is not looking quite so rosy.

Only 15 months ago, Andrew Forrest’s Fortescue Future Industries was putting recruiting ads in the lifts of the Perth towers that house BHP, Rio Tinto and South32.
This week, any of the “tenacious go-getters” that heeded Fortescue’s call to jump ship to the new green hydrogen economy face the possibility they will now lose those jobs as Fortescue looks to slash its workforce to save cash.

Workers in the mining industry are no strangers to mass redundancy events. If commodity prices fall, companies cut costs and shed workers. But that is not what is happening here. While the iron ore price briefly dipped below $US90 a tonne last year, this week it was back above $US120 – still extraordinarily high by long-term standards.
https://www.theaustralian.com.au/business/margin-call
And yes, the skills shortage over the past two years in WA has forced up wages amid a bidding war for skilled workers and even graduates. But Fortescue’s records show it had 1500 more direct employees at the end of June 2022 than it did 12 months before. In that same period, the workforce at its FFI green arm grew by more than 800.

When Fortescue did its last mass round of redundancies in 2015, sacking as many as 700 workers, it was triggered by a tumbling iron ore price, troubling levels of debt, and a major change to on-site rostering arrangements. Forrest was Fortescue’s non-executive chairman at the time and chief executive Nev Power oversaw the cull. Days after it began, Forrest described the cuts as “personally tragic” and ”heartbreaking”.

If there’s any heartbreak this time, it is of Forrest’s own making. He drove the rapid growth of FFI staffing, as the company tried to nail down every possible undeveloped green energy project it could. And, as executive chairman, it is under his watch – and presumably direction – that the latest plan for cost-cutting and redundancies has been developed.

To be fair, now is probably a natural point for a review of FFI’s staffing levels. FFI chief executive Mark Hutchinson has been in the role since July and has said the company is narrowing its focus to make a final investment decision on five projects this year.

There is also the growing pressure on Fortescue over its spending levels on FFI – which aside from an endless parade of memorandum of understandings and other early stage agreements – is yet to produce much of anything that can be valued by the market.

With the extraordinary leadership exodus over the past two years, it would hardly be surprising if the company’s back end has put on some excess weight as well.

The market will likely welcome any move to cut costs at Fortescue, and particularly at FFI, in the hope it signals a return to spending discipline. But for the workers likely to be made redundant, Forrest’s incessant use of the phrase “Fortescue family” to describe its workforce is likely to ring a trifle hollow this month.

Mick

 

[Sean K]

According to The Australian , the Future is not looking quite so rosy.


Mick

Looking forward to the FID on the five green energy projects they're going to fund this year.

 

[Sean K]

Looking forward to the FID on the five green energy projects they're going to fund this year.

Lucky FFI isn’t listed. This doesn’t pass the pub test. Or the playground sand pit test.

 

[sptrawler]

This renewable energy project ties in with FFI's electrolyser at Gladstone, Twiggy just changing construction contractors, interesting thing is he owns the new company finishing the build and most of the company they are replacing.

Work shut down on Australia’s biggest wind farm

Contractors and subcontractors working on the $3 billion Clarke Creek facility in central Queensland backed by billionaire Andrew Forrest have been told to “demobilise” from the site.

www.afr.com

Touted as the largest renewables project in the southern hemisphere, the 450-megawatt wind farm – which includes 100 turbines – is being built by Dr Forrest’s private company, Squadron Energy.
ontractors and subcontractors working on the site, 150 kilometres north-west of Rockhampton and 150 kilometres south of Mackay, were told on Wednesday night to stop work and take equipment from the site.
A source with knowledge of the project said the move was related to “a change in strategic direction”, with Squadron Energy taking over as project manager from Windlab.
It is understood there was a clause in the contract that allowed Windlab to be dismissed as project manager without a “just cause”. The purchase of CWP Renewables last year has given Squadron Energy the expertise to take control of construction of the project, which would involve a change in personnel.

The source rejected suggestions the shutdown was related to safety or cultural heritage, saying there would not be a significant delay to the project, which is expected to export power to the grid by 2025.

Still, the move to change contractors mid-project is unusual. One industry source said the call to demobilise was significantly different from a temporary stand-down.
Dr Forrest became one of Australia’s biggest owners of renewable energy assets last year with the aquisition of CWP, giving Squadron massive reach into NSW and adding to renewable assets that already have 2.4 gigawatts of capacity and an Australian development pipeline of 20GW.

Dr Forrest is also a 75 per cent owner of Windlab.
Squadron Energy, Dr Forrest’s private company, bought the Clarke Creek wind farm off Goldwind and Lacour last year.

The Fortescue Metals founder is keen to build a clean energy hub in central Queensland which will also link to the $1 billion electrolyser factory which one of his other companies, Fortescue Future Industries, is building in Gladstone.

 

[Sean K]

This renewable energy project ties in with FFI's electrolyser at Gladstone, Twiggy just changing construction contractors, interesting thing is he owns the new company finishing the build and most of the company they are replacing.

Work shut down on Australia’s biggest wind farm

Contractors and subcontractors working on the $3 billion Clarke Creek facility in central Queensland backed by billionaire Andrew Forrest have been told to “demobilise” from the site.

www.afr.com

Touted as the largest renewables project in the southern hemisphere, the 450-megawatt wind farm – which includes 100 turbines – is being built by Dr Forrest’s private company, Squadron Energy.
ontractors and subcontractors working on the site, 150 kilometres north-west of Rockhampton and 150 kilometres south of Mackay, were told on Wednesday night to stop work and take equipment from the site.
A source with knowledge of the project said the move was related to “a change in strategic direction”, with Squadron Energy taking over as project manager from Windlab.
It is understood there was a clause in the contract that allowed Windlab to be dismissed as project manager without a “just cause”. The purchase of CWP Renewables last year has given Squadron Energy the expertise to take control of construction of the project, which would involve a change in personnel.

The source rejected suggestions the shutdown was related to safety or cultural heritage, saying there would not be a significant delay to the project, which is expected to export power to the grid by 2025.

Still, the move to change contractors mid-project is unusual. One industry source said the call to demobilise was significantly different from a temporary stand-down.
Dr Forrest became one of Australia’s biggest owners of renewable energy assets last year with the aquisition of CWP, giving Squadron massive reach into NSW and adding to renewable assets that already have 2.4 gigawatts of capacity and an Australian development pipeline of 20GW.

Dr Forrest is also a 75 per cent owner of Windlab.
Squadron Energy, Dr Forrest’s private company, bought the Clarke Creek wind farm off Goldwind and Lacour last year.

The Fortescue Metals founder is keen to build a clean energy hub in central Queensland which will also link to the $1 billion electrolyser factory which one of his other companies, Fortescue Future Industries, is building in Gladstone.

Ponzi Scheme?

Multiple???

Or, just White Elephant developments....

 

[sptrawler]

Ponzi Scheme?

Multiple???

Or, just White Elephant developments....

Wouldn't be the first time that has been used to make money and wont be the last.
Let's be honest FFI could make a ton more money just flipping houses in Sydney, at least the renewable crap is employing people.?
The Govt is probably pouring a lot less money into FFI, than they are into keeping the unemployed happy and housed.

 

[Sean K]

Wouldn't be the first time that has been used to make money and wont be the last.
Let's be honest FFI could make a ton more money just flipping houses in Sydney, at least the renewable crap is employing people.?
The Govt is probably pouring a lot less money into FFI, than they are into keeping the unemployed happy and housed.

Has FFI actually done anything yet?

Apart from sack people?

Going to their website, it looks like a front for Extinction Rebellion...