Fortescue (ASX:FMG) share price rises amid green train progress

Fortescue shares are up as its green initiatives continue.

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The Fortescue Metals Group Limited (ASX: FMG) share price is rising as the resources giant’s green division called Fortescue Future Industries (FFI) continues to make progress on green locomotives. It’s up more than 1% at the time of writing.

A key purpose of FFI is to turn Fortescue’s operations greener and help it head towards net zero. The aim for Fortescue is to be carbon neutral by 2030 for both scope 1 and scope 2 emissions. It wants to stop using diesel across its mining fleets.

Locomotive progress

Fortescue Future Industries has said that its locomotive fleet’s decarbonisation is ramping up with the arrival of two more locomotives at FFI’s research and development facility in Hazelmere, Perth.

The two locomotives will go through further testing on the new fuel system, joining the first two which went through testing earlier this year.

Fortescue Future Industries aims to operate those trains completely on green ammonia and other green renewable fuels and technologies.

Earlier this year, the team achieved the successful combustion of blended ammonia fuel in a two-stroke locomotive.

Fortescue Chief Executive Officer, Elizabeth Gaines said:

The arrival of the additional locomotives allows FFI’s Green Team to expand their development.

Fortescue’s fleet of locomotives is a critical element in decarbonising our operations and through FFI we are investing in cutting-edge technologies to power the green mining fleet of the future.

What else is Fortescue Future Industries working on?

FFI’s team has been trialling technology in hydrogen, ammonia and battery power for trains, ship engines, haul trucks and drill rigs. It wants its trains, trucks and ships to be running on zero-pollution fuels as soon as possible.

Planning is underway to deploy a demonstration locomotive in Fortescue’s rail operations in 2022.

It has also signed various agreements and memorandums of understanding in countries like Canada, Jordan and PNG to consider green projects that can unlock new industries.

Fortescue Future Industries is being particularly active in Australia to find and fund projects that can create green heavy industry initiatives.

Just yesterday, it was announced that FFI and AGL Energy Ltd (ASX: AGL) have agreed to undertake a feasibility study to repurpose infrastructure at the Hunter Valley’s Liddell and Bayswater coal-fired power stations to generate green hydrogen from water, using renewable energy.

The Fortescue share price went up more than 3% yesterday.

FFI founder and chair, Dr Andrew Forrest, said:

FFI’s goal is to turn regional Australia into the global green energy heartland and create thousands of jobs now and so many more in the future.

Repurposing existing fossil fuel infrastructure with forward looking companies like AGL to create green hydrogen to help power the world, is the solution we have been looking for.

Green hydrogen is the only true zero-carbon, zero-methane fuel – every other type of hydrogen requires the burning of fossil fuels.

It is a practical, implementable solution that can collapse emissions and create strong economies worldwide.

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Motley Fool contributor Tristan Harrison owns Fortescue Metals Group Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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