Diverse Australian mining-come-energy company Fortescue has secured a RMB14.2bn (US$1.98bn) loan in order to get its decarbonisation agenda back on track.
The loan, the first RMB-syndicated term loan of its kind by an Australian corporate, was secured from leading Chinese, Australian and international lenders.
Fortescue is a core supplier of iron ore to China and generates RMB revenues through its iron ore sales.
Dr Andrew Forrest, Executive Chairman, said while the US steps back from investing “in what will be the world’s greatest industry”, China and Fortescue are advancing the green technology needed to lead the global green industrial revolution. “China continues to lead the world in industrial scale and innovation,” he said.
Fortescue has cancelled two green hydrogen projects in the US and Australia, despite both having passed final investment decision (FID), citing shifting policy landscapes and a retreat from its electrolyser ambitions, according to gasworld’s sister title H2 View.
New CEO for Growth and Energy, Gus Pichot, told investors that the firm would not progress with its 80MW hydrogen project in Arizona and its PEM50 project in Gladstone, Queensland. Both projects reached FID in 2023.
The move will see a pre-tax write-down of $150m covering equipment and engineering spends.
In June, Fortescue, in collaboration with Trovio and the Green Hydrogen Organisation (GH2), completed the issuance of the world’s first digital fuel certificate for an ammonia-to-ship transfer.
The transaction involved the Fortescue Green Pioneer, the first ocean-going dual-fuelled ammonia powered vessel, at the Port of Rotterdam.
In April, Fortescue announced it had partnered with CMB.Tech to develop a hydrogen-based ammonia dual-fuel vessel capable of transporting iron ore from Australia to China and other global markets. Under the agreement, the 210,000-deadweight-tonne ship will be delivered by the end of 2026.