Fortescue, the world's fourth largest iron ore supplier, announced on WeChat that it has signed a MoU with Baowu Resources. Shelley Robertson, the company's Chief Operating Officer (COO), said: “We remain committed to building a green iron supply chain. Our partnership with China Baowu will accelerate the development of green iron technology and allow us to meet the growing demand for green iron in China and around the world.”
Fortescue's green iron project at its Christmas Creek operations in Western Australia is ongoing. The company plans to produce 1,500 metric tons of green iron annually by 2025 and aims to green all iron ore products by 2030. The new plant will transform iron ore into sponge iron using green hydrogen in a reduction furnace. This sponge iron will then be processed in an electric melting furnace into high-purity green iron.
It is emphasized that Australia, as the world's largest iron ore exporter, needs to quickly increase its production of green iron in order to compete with other countries that have started producing steel with renewable energy. Otherwise, it risks losing much of its revenue from the sector. This was also mentioned in a report published last November.
Fortescue CEO Dino Otranto said last October that Australia was in danger of losing its dominance in the global iron ore market if it did not quickly switch to green iron production.
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