Australian iron ore exporter Fortescue Metals plans to achieve net-zero greenhouse gas (GHG) emissions from the customer use of its iron ore, which is known as scope three GHG emissions, by 2040. It plans to achieve this target through the use of hydrogen and ammonia produced from renewable sources.
The target is the most ambitious among Australia's largest iron ore exporters, with BHP last month excluding scope three emissions for steel customers from its net-zero GHG target for 2050. Fortescue's scope three GHG emissions totalled 252.17mn t of carbon dioxide equivalent (CO2e) in the 2020-21 fiscal year to 30 June.
The plan to reduce scope three GHG emissions is to develop projects and technologies with a focus on reducing emissions from iron and steel production and the supply of hydrogen and ammonia from renewable sources, Fortescue said. It will also prioritise the decarbonisation of its own fleet of eight ore carriers and engage with shipping partners to reduce, and aim to eliminate, emissions from shipping.
Fortescue in August said it expected to produce "carbon-neutral" iron ore from 2030. Fortescue's 100pc owned subsidiary Fortescue Futures Industries (FFI) plans to produce 15mn t/yr of hydrogen from renewable sources by 2030 and has been working on technology to produce steel with iron ore at low temperatures and without coking coal.
The majority of Fortescue's scope three emissions are in the steel production process, which was 246.14mn t of CO2e in 2020-21, it said in its 2020-21 climate report.
The company has also set medium-term GHG emissions reduction targets, including the reduction in emissions intensity levels from the shipping of its iron ore by 50pc by 2030 from levels in 2020-21. Its 2020-21 scope 3 emissions from the shipping of its iron ore to customers was around 3.48mn t of CO2e.
It also plans to reduce emissions intensity levels from steel production by its customers of 7.5pc by 2030 from 2020-21 levels to 100pc by 2040.
Fortescue and FFI to achieve a 2040 net-zero GHG emissions target plan to convert existing maritime vessels, including Fortescue's fleet of ore carriers, to be fuelled by green ammonia, which is produced from renewable resources with no emissions.
Fortescue emitted 2.2mn t of CO2e in 2020-21 from the extraction of iron ore in the Pilbara region of Western Australia and the purchase and consumption of energy to carry out its mining activity, which are known as scope one and two emissions.
