Andrew Forrest is a renowned billionaire who has rose to fame for being one of the world’s top iron ore exporter. He plans to join the renewables industry within the next two years. The decision comes after a discussion that concludes that renewable energy is enough to sustain humankind forever. Interestingly, he plans to surpass the supply of major global clean energy giants such as the Chevron Corp.
Fortescue Metals Group Ltd. plans to commence green fuel production either in 2022 or 2023. Its target is a production of up to 235 gigawatts, which is equivalent to 20 percent of the United States’ total generation capacity. The clean energy will initially come from solar and wind, but the company will later proceed to ammonia and hydrogen.
This company has been in existence since 2008, and over the years, it has earned a place among the global shippers clinching position four at the moment. By 2023, it plans to have done a lot in projects revolving around hydrogen and decarbonization. The company remains silent regarding how to fund its expansion and when it expects to have hit the capacity target. It is no secret that the initial investment will be about $732 million.
The market target is carbon-intensive industry sectors such as steelmaking. This industry could appreciate such a step since governments and investors keep reprimanding it to reduce greenhouse gas emissions day in day out. It is also important to note that Royal Dutch Shell Plc and BP Plc are planning to increase their portfolios in renewable shares.
During an interview, Forrest expressed some of the company’s wishes and targets. For instance, it plans to see a ship leave its ports about every half an hour and be the supplier of the world’s heavy industry. Equally important, the company is thriving towards offering major and regular renewable fuel supply.
If things were to go as per the targets, the value of the industry would increase. As of August, the company has recorded annual earnings of $4.7 billion, and transitioning to the energy industry would see that rise further. He added that the company has discussed various power projects with 31 countries and plans to increase the number by 16. It will also incorporate both the US and China.
The main target is Australia, where the transition from iron ore to renewable energy begins. After that, the focus will shift to port, rail, and shipping networks. In Australia, the coal industry is the primary source of employment. Government data shows that it is the employer of approximately 50,000 people. The renewable energy industry would match that if not exceed it.