FMG - Fortescue Ltd

[SirRumpole]

Some thing I have thought about is whether a floor will form under the local electricity price.

For example we know that the ability to liquify and export natural gas has basically put a floor under the gas price and keeps gas prices high.

If producing hydrogen for export and synthetic jet fuels etc becomes a thing, it could put a floor under electricity prices.

This would be a great thing for owners of electricity infrastructure and stimulate huge amounts of new investment and jobs, but it could cause high electricity prices for a while.

Let’s say jet fuel sells for $2 a litre, and it takes 5 kWH of electricity to make a litre of jet fuel, this might mean that the companies running the electrolisers converting electricity to liquid jet fuel will buy as much electricity as they can at up to 30 cents per KWH, meaning households have to pay more.

No doubt there is a production cost but if the electricity supply is renewable (maybe owned by the hydrogen producers themselves) then they can get cheap energy without driving the price up for the rest of us as long as there are sufficient sources of renewable for other businesses, industry and consumers.

 

[Value Collector]

No doubt there is a production cost but if the electricity supply is renewable (maybe owned by the hydrogen producers themselves) then they can get cheap energy without driving the price up for the rest of us as long as there are sufficient sources of renewable for other businesses, industry and consumers.

I think the hydrogen producers will have their own production, but also supplement that by buying from the market when the market is producing more wind or solar than it can consume and electricity is cheap. But that does open the doors to exactly what pricing the turn on and shut off the electrolysis plants.

One thing for sure is that the future of electricity supply and demand is going to be dynamic, we will have renewable producers expanding production causing big swings between high and low production, and we will have storage folks trying to arbitrage those price swings by charging batteries and pumping water up hill, and we will have hydrogen and electro fuel producers trying to buy as much electricity as they can to keep their electrolyses running to sell high value fuels.

It will be a boon for people involved in electricity production, even people with just home solar and batteries.

 

[basilio]

The Iron Bridge project is moving to production. The first crushing or ore has been made. Production will start in March 2023 and reach 22 m tons of 67% ore concentrate when fully operational.
The plant will also feature green energy use across it's operations.

Fortescue’s Iron Bridge Magnetite project marks first ore into processing plant​

Oct 31, 2022

Fortescue’s track record of delivering complex projects continues with today marking first ore feed into the processing plant at its Iron Bridge Magnetite project in the Pilbara.

With first production anticipated in the March 2023 quarter, Iron Bridge will see the world’s fourth largest iron ore miner deliver an enhanced product range and create 900 new jobs.

Significantly, it could become one of Fortescue’s first fossil fuel free sites, enabled by the recently announced world leading US$6.2 billion decarbonisation investment to reach real zero Scope 1 and 2 emissions by 2030.

Fortescue’s Iron Bridge Magnetite project marks first ore into processing plant | Fortescue Metals Group Ltd

www.fmgl.com.au

 

[basilio]

In Indonesia FFI has signed an MOU with Indonesian steel plants to decarbonise their operations using green hydrogen and green ammonia.
And yes the green hydrogen/ammonia will come from FFI's Australian operations.

Fortescue Future Industries to support Indonesian steel giant Gunung Raja Paksi on path to decarbonisation​

Nov 14, 2022

Fortescue Future Industries (FFI) and PT Gunung Raja Paksi Tbk (GRP) – a member of Gunung Steel Group and one of the largest steelmakers in Indonesia – will investigate how green hydrogen and green ammonia supplied by FFI could be used to help decarbonise GRP’s steelmaking factories.

Fortescue Chairman and Founder, Dr Andrew Forrest AO, and GRP Member of the Executive Committee Kimin Tanoto, have signed a Memorandum of Understanding (MOU) at the B20 Summit in Bali, Indonesia.

The use of green hydrogen could allow GRP to produce low-emission steel in what is a particularly hard-to-abate sector.

Under the MOU, the companies will seek to identify mutually beneficial opportunities to collaborate on green hydrogen and/or green ammonia technology and implementation, as well as offtake opportunities.

Fortescue Future Industries to support Indonesian steel giant Gunung Raja Paksi on path to decarbonisation | Fortescue Metals Group Ltd

www.fmgl.com.au

 

[Value Collector]

The Iron Bridge project is moving to production. The first crushing or ore has been made. Production will start in March 2023 and reach 22 m tons of 67% ore concentrate when fully operational.
The plant will also feature green energy use across it's operations.

Fortescue’s Iron Bridge Magnetite project marks first ore into processing plant​

Oct 31, 2022

Fortescue’s track record of delivering complex projects continues with today marking first ore feed into the processing plant at its Iron Bridge Magnetite project in the Pilbara.

With first production anticipated in the March 2023 quarter, Iron Bridge will see the world’s fourth largest iron ore miner deliver an enhanced product range and create 900 new jobs.

Significantly, it could become one of Fortescue’s first fossil fuel free sites, enabled by the recently announced world leading US$6.2 billion decarbonisation investment to reach real zero Scope 1 and 2 emissions by 2030.

Fortescue’s Iron Bridge Magnetite project marks first ore into processing plant | Fortescue Metals Group Ltd

www.fmgl.com.au

Here is the video of their processing plant stacking the first pile of ore, Millions of tonnes to follow soon.

 

[basilio]

Seems as if FFI is firming up it's plans for developing massive solar and wind power plants to produce green hydrogen in Queensland.

Game changing North Queenland Super Hub to power green hydrogen with wind, solar​

Nov 14, 2022

North-West Queensland is set to become home to one of the State’s largest ever renewable energy projects, with Fortescue Future Industries (FFI) and Windlab to partner on a Super Hub which could generate more than 10GW of wind and solar power and underpin the industrial-scale production of green hydrogen from purpose-built facilities within Queensland.

Green hydrogen has been highlighted as a solution for decarbonisation across a range of sectors, including, transport, industrial and energy storage. According to research conducted for the Australian Renewable Energy Agency, demand for hydrogen exported from Australia could be over three million tonnes per year by 2040, injecting up to $10 billion into the economy annually.

However, industrial-scale green hydrogen – hydrogen produced from renewable energy – has been constrained by the lack of renewable supply to power the process of extracting hydrogen from water through electrification.

.... FFI will partner with leading renewables developer Windlab on the North Queensland Super Hub, leveraging Windlab’s decade-long presence in the region including developing and operating Kennedy Energy Park, a world-first hybrid wind, solar and battery storage facility near Hughenden.

The first stage of the proposed project includes the 800MW Prairie Wind Farm and the 1000MW Wongalee project and is currently in detailed planning, with land agreements in place and the application for development approval for Prairie Wind Farm planned for submission in the coming months.

Subject to approvals, construction on the first stage is expected to commence in 2025 with the projects anticipated to begin to produce power by 2027. Energy generated from the project stands to produce green hydrogen as well as feed renewable power to the grid.

Game changing North Queenland Super Hub to power green hydrogen with wind, solar

FFI and Windlab to partner on a Super Hub which could generate more than 10GW of wind and solar power and underpin the industrial-scale production of green hydrogen.

www.fmgl.com.au

 

[Garpal Gumnut]

Seems as if FFI is firming up it's plans for developing massive solar and wind power plants to produce green hydrogen in Queensland.

Game changing North Queenland Super Hub to power green hydrogen with wind, solar​

Nov 14, 2022

North-West Queensland is set to become home to one of the State’s largest ever renewable energy projects, with Fortescue Future Industries (FFI) and Windlab to partner on a Super Hub which could generate more than 10GW of wind and solar power and underpin the industrial-scale production of green hydrogen from purpose-built facilities within Queensland.

Green hydrogen has been highlighted as a solution for decarbonisation across a range of sectors, including, transport, industrial and energy storage. According to research conducted for the Australian Renewable Energy Agency, demand for hydrogen exported from Australia could be over three million tonnes per year by 2040, injecting up to $10 billion into the economy annually.

However, industrial-scale green hydrogen – hydrogen produced from renewable energy – has been constrained by the lack of renewable supply to power the process of extracting hydrogen from water through electrification.

.... FFI will partner with leading renewables developer Windlab on the North Queensland Super Hub, leveraging Windlab’s decade-long presence in the region including developing and operating Kennedy Energy Park, a world-first hybrid wind, solar and battery storage facility near Hughenden.

The first stage of the proposed project includes the 800MW Prairie Wind Farm and the 1000MW Wongalee project and is currently in detailed planning, with land agreements in place and the application for development approval for Prairie Wind Farm planned for submission in the coming months.

Subject to approvals, construction on the first stage is expected to commence in 2025 with the projects anticipated to begin to produce power by 2027. Energy generated from the project stands to produce green hydrogen as well as feed renewable power to the grid.

Game changing North Queenland Super Hub to power green hydrogen with wind, solar

FFI and Windlab to partner on a Super Hub which could generate more than 10GW of wind and solar power and underpin the industrial-scale production of green hydrogen.

www.fmgl.com.au

Once I see the words "game changer" I immediately look at the chart and my profit.

For FMG today it was a SELL for me, so I'm presently out.

Let the FMG thread continue now with people talking about how skinny they are, what shape poos they produce and what they bloody well eat and give the @Country Lad thread a bit of a break.

Jesus wept.

gg

 

[basilio]

Once I see the words "game changer" I immediately look at the chart and my profit.

For FMG today it was a SELL for me, so I'm presently out.

Let the FMG thread continue now with people talking about how skinny they are, what shape poos they produce and what they bloody well eat and give the @Country Lad thread a bit of a break.

Jesus wept.

gg

?????

GG in what universe did you think Twiggy and FMG/FFI were not going to go full bore with attempting to create a 3 Million ton a year Hydrogen market by 2030 ? For two years now it has been absolutely clear that FMG was decarbonising its operations and FFI was (somehow..) going to reach it's stretch goal for 2030. It is an absolute game changer for FMG in particular and heavy industry in general.

But having said that FMG's core business of mining and selling iron ore is still front and centre of operations. They are still expanding their iron ore operations locally and internationally. FFI takes 10% of the profits to make it's running. But the current main game stays.

If Twiggy does reach his stretch goals in 7-8 years then there will be two massive income earners in the FMG portfolio - iron ore and hydrogen based heavy industry.

 

[Garpal Gumnut]

?????

GG in what universe did you think Twiggy and FMG/FFI were not going to go full bore with attempting to create a 3 Million ton a year Hydrogen market by 2030 ? For two years now it has been absolutely clear that FMG was decarbonising its operations and FFI was (somehow..) going to reach it's stretch goal for 2030. It is an absolute game changer for FMG in particular and heavy industry in general.

But having said that FMG's core business of mining and selling iron ore is still front and centre of operations. They are still expanding their iron ore operations locally and internationally. FFI takes 10% of the profits to make it's running. But the current main game stays.

If Twiggy does reach his stretch goals in 7-8 years then there will be two massive income earners in the FMG portfolio - iron ore and hydrogen based heavy industry.

Thanks @basilio

I have nothing against hydrogen energy.

I have nothing against wind farms ( I used to ).

The combination of the two is "challenged".

I'll re-enter when all the hype settles down at a more reasonable price, as will Twiggy.

As Brian's mother said " He's not the Saviour, he's just a very naughty boy".

gg

 

[basilio]

GG I agree that right now it seems difficult to see how hydrogen will be produced at $2 a kilo in 2030. That, I understand, is the objective.

Having said that even in the past couple of years there has been some quite interesting technology that could result in far more cost efficient hydrogen production. FFI has already bought into these technologies.

Will the development of these new industries be a financial drag on FMG ? I understand that the analysts think so and predict that within a couple of years FMG dividends will collapse because of the "billions of dollars" required to create this new infrastructure. I'm not inclined to accept their POV. I think that Twiggy will move heaven and earth to get external funds to support this development and that FMG dividends will stay broadly on track. FFI will need to live on the 10% it currently receives from the profits. The capital expenditure component of FMG may indeed help finance some of the internal solar/wind developments they are undertaking to decarbonise their business.

 

[divs4ever]

As Brian's mother said " He's not the Saviour, he's just a very naughty boy".

yes , several times i have threatened to change my name to Brian

 

[divs4ever]

Once I see the words "game changer" I immediately look at the chart and my profit.

interesting .. i will ponder on whether to add 'game changer' to my existing list of red flags

cheers

 

[basilio]

Interesting to see that Twiggy has made a very decisive move to support Ukraine in it's redevelopment after the war.
He is stumping up $500m US in an international recovery fund. He is trying to lead other investors into supporting the country. (Probably doesn't hurt his efforts at selling FMG as well.)

To be clear this is his money not FMGs. It is coming from his private investment operations. But I wouldn't be one little bit surprised if FMG/FFI end up with a piece of any action in redeveloping Ukraine heavy industry and energy sectors.

'Sending a message to the world': Andrew 'Twiggy' Forrest pledges $744 million towards rebuilding Ukraine

The mining magnate invests in a fund that will pour money into primary infrastructure, including energy and communications, in the country.

www.abc.net.au

 

[eskys]

Why be Brian when you can be Brain, divs?

 

[divs4ever]

Why be Brian when you can be Brain, divs?

it was the folks that kept expecting miracles , that was the problem

and what would i do if i took over the world .. start a Tik-Tok channel of folks making terrible choices , perhaps ( you can't save them all , one will always U-turn at run straight into the lion's mouth .)

 

[eskys]

I knew you have brains, but let's say goodnight before someone throws rocks at us

 

[divs4ever]

cheers , and goodnight

 

[sptrawler]

What we have to keep in perspective is, while we talk about our move to a hydrogen economy, we are starting to import coal.
If all this green economy fails, we are going to be caught swimming naked. Lol
I do hold FMG and I do hope it all works out, but if it doesnt, well I only have to put up with a maximum of 20 years of the down side.

 

[divs4ever]

Australia shouldn't have to import coal in the next 50 years ( we still have massive reserves laying undeveloped)

if Australia needs to import coal we have a government policy problem ( and NOT just in QLD )

and 'green energy ' is already failing to the extent they are now including uranium as 'clean energy ' despite having had 40 years to use uranium to replace coal-fired power-plants ( and not doing so , properly )

with such proven planners in charge , what could possibly go wrong

of course i could always be a spoil-sport , and ask how are they going to build all the infrastructure ( to make and transport hydrogen ) in a global economy on the verge of a ( coordinated ) collapse

 

[mullokintyre]

Australia shouldn't have to import coal in the next 50 years ( we still have massive reserves laying undeveloped)

if Australia needs to import coal we have a government policy problem ( and NOT just in QLD )

and 'green energy ' is already failing to the extent they are now including uranium as 'clean energy ' despite having had 40 years to use uranium to replace coal-fired power-plants ( and not doing so , properly )

with such proven planners in charge , what could possibly go wrong

of course i could always be a spoil-sport , and ask how are they going to build all the infrastructure ( to make and transport hydrogen ) in a global economy on the verge of a ( coordinated ) collapse

Australia as a whole does not need to import coal, but WA will have to import coal for a little while yet as they have closed down or bankrupted all the mines in that state. South Australia has closed it only coal mine at Leigh Creek, but if my memory serves me correctly, they also closed down their remaining coal fired power plants. .
Expect Victoria to follow suit.
Mick