The green division of Fortescue Metals Group Limited (ASX: FMG), Fortescue Future Industries, has been given the go-ahead for the green energy manufacturing (GEM) centre in Queensland.
Fortescue Future Industries’ GEM
FFI said that its first GEM in Queensland has received planning approval from the state government.
Fortescue says that the project will see the construction of a world leading electrolyser, renewable industry and equipment factory at Gladstone.
FFI believes that the manufacturing facility in Gladstone will be a major hub in Queensland’s growing hydrogen industry.
The company is looking to commence construction on the first stage in February 2022.
It will be the world’s largest electrolyser factory in the world when it comes online in 2023.
The initial electrolyser investment is expected to be up to US$83 million (A$114 million), with the first electrolysers scheduled for production in early 2023.
When the announcement of GEM was first made, FFI also said that GEM will be delivered in specialist production lines according to the requirements of FFI and its customers, including the manufacture of wind turbines, long-range electric cabling, solar photovoltaic cells, electrolysers and associated infrastructure.
First of many?
Fortescue Future Industries says that the GEM will be the first step in a series of projects that will continue to transform regional Australia through green industry manufacturing and energy production centres.
Management comments
FFI Chairman, Dr Andrew Forrest, said: “Gladstone is going to be at the centre of Queensland’s green energy revolution with the first electrolysers scheduled to enter production in 2023.
“This project will not only be a gamechanger for green manufacturing in regional Queensland, it will also provide a major boost for the local economy and indelibly put Queensland as an epicentre of the coming green industry revolution.”
Summary thoughts on Fortescue Future Industries and the Fortescue share price
This was another positive step for FFI towards becoming an important national player in the green scheme of things.
Whilst it’s early days, Fortescue Future Industries is making a lot of progress in various ways to help the country and the world get a little closer to net zero. I currently own Fortescue shares and I’m looking to add more if the iron ore price remains low (or goes lower).
