PERTH (miningweekly.com) – Iron-ore major Fortescue’s green energy arm, Fortescue Future Industries (FFI), will partner with Indonesian steel major Gunung Steel Group subsidiary PT Gunung Raja Paksi Tbk (GRP) to investigate how green hydrogen and green ammonia supplied by FFI could be used to help decarbonise GRP’s steelmaking factories.
Fortescue chairperson and founder Dr Andrew Forrest signed a memorandum of understanding (MoU) with GRP member of the executive committee Kimin Tanoto at the B20 Summit in Bali, under which the companies will seek to identify mutually beneficial opportunities to collaborate on green hydrogen and/or green ammonia technology and implementation, as well as offtake opportunities.
A technical feasibility study will be launched to explore opportunities to use green hydrogen and/or green ammonia as an alternative fuel source to transform the upstream steelmaking process, which includes direct reduced iron (DRI) and hot briquetted iron (HBI), as well as the modification of the existing and future steelmaking process at GRP’s steelmaking plant at Bekasi, in West Java.
“Fortescue is the only major heavy industry company in the world with a real construction plan to get to real zero and we are already rapidly beginning to acquire and implement the technology required to deliver on our 2030 decarbonisation target,” Forrest said.
“If we are to have the impact needed to reduce carbon emissions, we cannot do this alone. We need other emitters, companies like GRP, to follow our lead and we are determined to do everything in our power to help them on their own path to decarbonisation.”
A taskforce featuring employees from both companies will start work immediately following the signing of the MoU with a view to signing a binding framework agreement in due course.
Tanoto said GRP was determined to seek out technologies that could help lower its carbon footprint.
“As leaders in the steelmaking industry, it is our responsibility to ensure that the steps we take today, build a future for tomorrow,” he said.
“We are working with partners who have the expertise to drive our business and the steel industry to a prosperous and environment-friendly future.
“With that in mind, GRP is committed to leveraging the right technologies, knowledge and expertise to incorporate sustainability initiatives alongside business processes, which would make our sustainability strategy more viable in the long term.”
The volume of green energy supplied to GRP by FFI will be determined through the technical feasibility study. This GH2 is likely to come from some of FFI’s first projects in Australia.