Tag Archives: steel-making

Fortescue issues ‘industry-leading’ Scope 3 emissions targets

Fortescue Metals Group has announced what it says is an industry-leading target to achieve net zero Scope 3 emissions by 2040, addressing emissions across Fortescue’s entire global value chain, including crude steel manufacturing which accounts for 98% of the company’s Scope 3 emissions.

Fortescue’s approach to reducing Scope 3 emissions is to develop projects and technologies with a focus on reducing emissions from iron and steel making and to work with current and prospective customers on the application of the technology and the supply of green hydrogen and ammonia from Fortescue Future Industries (FFI). Fortescue will also prioritise the decarbonisation of its own fleet of eight ore carriers and engage with shipping partners to reduce, and aiming to eliminate, emissions from shipping.

FFI is targeting the production of 15 Mt of green hydrogen annually by 2030, which will underpin opportunities to work with customers and shipping partners on emissions reduction and elimination projects.

In addition to the long-term goal to achieve net zero Scope 3 emissions by 2040, the following medium-term targets have been set:

  • Enable a reduction in emissions intensity levels from the shipping of Fortescue’s ores by 50% by 2030 from financial year (FY) 2021 levels; and
  • Enable a reduction in emissions intensity levels from steel making by Fortescue’s customers of 7.5% by 2030 from FY21 levels, to 100% by 2040.

Fortescue Chief Executive Officer, Elizabeth Gaines, said: “Climate change is the most pressing issue of our generation and at Fortescue, setting stretch targets is at the core of our culture and values and we are proud to set this goal to tackle emissions across our value chain.

“Fortescue has commenced its transition from a pure play iron ore producer to a green renewables and resources company, underpinned by the world’s first major carbon emission heavy industry operation to set a target to achieve carbon neutrality by 2030. This Scope 3 target is consistent with this transition and complements our targets for Scope 1 and 2 emissions reduction.

“Collaboration is integral to driving the rapid transition to green energy, and we remain committed to actively engaging with our customers, suppliers and other key industry participants to facilitate the reduction of emissions. This includes the development of technologies and the supply of green hydrogen and ammonia through FFI, which will provide significant opportunities for the steel, cement and land and sea transport industries to decarbonise.”

To achieve the target, Fortescue and FFI are focused on accelerating a number of key initiatives:

  • Conversion of existing maritime vessels, including Fortescue’s fleet of ore carriers, to be fuelled by green ammonia;
  • Supporting the adoption of green ammonia in new vessel construction;
  • Pursuing opportunities for emissions reduction and elimination in iron and steel making, facilitated by the use of renewable energy and green hydrogen; and
  • Research and development work to produce green iron and cement from Fortescue ores at low temperatures without coal.

FFI Chief Executive Officer, Julie Shuttleworth, said: “Our investments in technologies and research and development are focused on demonstrating that the production of iron ore, cement, iron and steel can operate with renewable energy.

“Our work to decarbonise Fortescue’s iron ore operations will position Fortescue as the first major supplier of green iron ore in the world, paving the way for production of green iron and a new green steel industry.”

Rio and POSCO look to combine iron ore processing and steel-making technologies

Rio Tinto and POSCO, the largest steel producer in South Korea and one of the world’s leading steel producers, have signed a Memorandum of Understanding (MoU) to jointly explore, develop and demonstrate technologies to transition to a low-carbon emission steel value chain.

The partnership will explore a range of technologies for decarbonisation across the entire steel value chain from iron ore mining to steelmaking, including integrating Rio Tinto’s iron ore processing technology and POSCO’s steel-making technology.

The MoU with POSCO underlines Rio Tinto’s commitment to working in partnerships with customers on steel decarbonisation pathways and to invest in technologies that could deliver reductions in steelmaking carbon intensity of at least 30% from 2030 or with potential to deliver carbon-neutral steelmaking pathways by 2050, the company said. Both Rio Tinto and POSCO share the ambition to reach net zero carbon emissions by 2050, it added.

Rio Tinto Chief Commercial Officer, Alf Barrios, said: “This partnership with POSCO, a valued and long-standing customer, demonstrates our combined commitment to working together to identify ways to reduce emissions across the steel-making process. The agreement also complements Rio Tinto‘s partnerships with other customers as the industry focusses on developing technologies that support the transition to a low-carbon economy.”

POSCO’s Head of Steel Business Unit, Hag-Dong Kim, said: “Tackling climate change is a critical item in achieving sustainable development for a better future. On the journey to achieving carbon neutrality with Rio Tinto, we can play an important role of finding a way to build a low-carbon steel industry”