Fortescue Future Industries, the decarbonisation division of Fortescue Metals Group Limited (ASX: FMG), thinks that shipping should go for net zero by 2040.
FFI’s green shipping goal
The Fortescue Future Industries Chairman Dr Andrew Forrest has said shipping should aim for net zero.
FFI’s ‘Green Fleet Team’ is looking to quickly convert the 75m vessel the MMA Leveque over the next 12 months so it can run almost entirely on green ammonia. This is in collaboration with MMA Offshore Ltd (ASX: MMA).
Fortescue Future Industries said that MMA Leveque will run on green fuel and is part of Fortescue Metal Group’s broader fleet of trucks, locomotives and ships all undergoing technical transition to operate on green fuels.
Earlier this year, FFI’s Green Fleet Team achieved the successful combustion of blended ammonia fuel in a locomotive (train), paving the way to achieve a renewable locomotive operation using 100% green ammonia.
The green division of Fortescue said that this brings the shipping industry much closer to becoming carbon neutral well before 2040 with only “entrenched industry practices” slowing global progress of carbon neutral shipping.
Management comments
Dr Forrest said: “This vessel will show the shipping industry the power of a vessel fueled by green ammonia in real world conditions.
“We are investing heavily in research and development to transform our trains, trucks and ships on the road, rail and sea with zero pollution fuels as soon as possible.
“It is world leading technology and will assist in providing the shipping industry with the practical knowhow to decarbonise completely.”
Summary thoughts on the Fortescue share price and Fortescue Future Industries
Fortescue Future Industries has announced a growing number of industrial goals and partnerships, spread across a number of geographies.
If FFI can be successful with just some of its targets, it could create a lot of value for shareholders and help the world significantly decarbonise. At this stage, there is no guarantee of success of what FFI is doing, but it’s promising and an important factor for why I like Fortescue at this share price.
