Fortescue’s Commitment to Achieve Real Zero by 2030: A Bold Move to Eliminate Fossil Fuels in Mining

Fortescue, a titan in the global iron ore industry and a major player in the notoriously hard-to-abate mining sector, has committed to transforming into a climate-action frontrunner. Based in Australia, Fortescue has set its sights on an ambitious and groundbreaking “real-zero” pledge: eliminating fossil fuel use in their Australian iron-ore operations – without relying on carbon removals – for Scope 1 and 2 by 2030.

While many net-zero pledges allow for a trickle of residual emissions or rely on carbon removals to neutralize emissions, Fortescue’s real-zero target means a full, 100% elimination of operational emissions at the source. They’re tackling all Scope 1 and 2 emissions – everything they own and operate.

This commitment isn’t just about climate responsibility: Fortescue views real zero as a savvy business strategy. They aim to cut long-term operating costs, meet the rising demand for low-carbon iron and steel, and even create new revenue streams from innovative clean energy technologies like green hydrogen.

The Company-Wide Pledge: Real Zero, No Offsets, Proven Technologies

Fortescue laid out its bold decarbonization roadmap and real-zero pledge for its iron-ore operations in 2022, vowing to eliminate all fossil fuel use — from haul trucks and trains to power generation and stationary equipment. Prior to this, they committed to achieving net-zero Scope 3 emissions – which are largely driven by customer steelmaking and iron ore shipping – by 2040. Their Scope 3 strategy prioritizes decarbonizing the value chain upfront, with only a limited allowance for removals if certain emissions are unavoidable. Importantly, Fortescue is sticking to technologies that are already available or can be deployed within the next decade.

These commitments set Fortescue apart as one of the few global companies with a near-term, net-zero-aligned target that explicitly rejects reliance on carbon removals, focusing instead on eliminating emissions at their source. 

Their key targets include:

• Achieving real zero for Scope 1 and 2 for Australian iron-ore operations without offsets or removals by 2030.

• Achieving net-zero for Scope 3 by 2040, with a focus on:

• • Supplying green hydrogen to help customers decarbonize steel production.
  • Significantly reducing shipping emissions intensity through green ammonia and electrification.
  • Partnering across the value chain — though some reliance on carbon removals for Scope 3 might be a last resort.

This two-pronged strategy puts Fortescue in a unique position: aggressively eliminating their own operational emissions on an accelerated timeline while transparently addressing the more tricky Scope 3 emissions.

Their physical emissions intensity targets are equally ambitious:

• A 7.5% reduction in emissions intensity from steelmaking (customer-side) from FY 2021 levels.
• A 50% reduction in emissions intensity from shipping from FY 2021 levels.

How They’re Doing It

• Diesel Replacement: They’re phasing out diesel across haul trucks, trains, and vessels by transitioning to battery-electric and green hydrogen/ammonia-powered alternatives.
  • In 2025, zero-emission fleet pilots — including battery-electric haul trucks and hydrogen-powered prototypes — are set to launch.
  • Ongoing: Development of the Infinity Train, a battery-electric locomotive that recharges using gravitational energy, is in progress, eliminating the need for external charging or fossil fuels in rail transport.
• Clean Energy Buildout: Fortescue is developing 2–3 GW of renewable energy, integrated with large-scale battery-storage and hydrogen electrolyzers.
  • As of 2024, solar, battery, and hydrogen power systems are already under construction.
  • By 2026 (planned), green hydrogen production will be scaled at major project sites — like Gladstone.
• Upfront Investment: The company is committing US$6.2 billion to decarbonization infrastructure – not just promises for the future, but tangible investments today.
• In-House Innovation: Through its dedicated energy division, Fortescue is developing their own technologies for green hydrogen systems and fleet electrification, enabling speed, customization, and long-term cost savings.

Why Is This Considered a “High-Integrity” Target?

While many companies tout “net-zero-by-2050” targets that often lean heavily on offsets or on technologies that are expected to come online in time to help meet their net-zero targets, Fortescue stands out for several reasons:

1. Acting now: Pledging to eliminate Scope 1 and 2 emissions by 2030 is significantly more aggressive than typically observed 2050 targets aligned with the Paris Agreement. 
2. Self-investing: Fortescue is taking control of its energy future by building its own energy systems rather than depending on grid decarbonization.
3. Fuel-free: They are committed to completely removing fossil fuels from their operations rather than compensating for them.
4. Emissions-free: They’re eliminating emissions so they don’t need to rely on offsets to reach net zero.
5. Sector-leading: For a company traditionally reliant on fossil fuels, this level of commitment is unprecedented and backed by substantial investment.

Lessons for True Net-Zero and Real-Zero Integrity

Fortescue’s strategy offers vital lessons for any organization serious about climate action:

• Be Precise: Fortescue makes a crystal-clear distinction between its “real zero” commitment and the broader, often less defined concept of net zero. 
• Accelerate, Don’t Defer: Immediate action and concrete interim milestones are key to maintaining credibility.
• Build, Don’t Buy: Their transition is powered by internal investments in infrastructure, rather than investing in externally-managed offset projects. 
• Hard-to-Abate ≠ Hard-to-Act: The mining sector, a significant contributor to emissions, is proving that rapid decarbonization is not just desirable, but technically achievable.

“Decarbonising isn’t just good for the planet – it’s good for the bottom line. By switching to renewables, we can significantly reduce operational costs – a win-win situation of climate action driving profitability.” – Fortescue CEO, Dino Otranto

If you’re looking to enhance your organization’s emissions reporting and verification practices with transparency and credibility, The Climate Registry is here to help. Reach out to us at info@theclimateregistry.org for personalized guidance tailored to your needs. Additionally, explore our resources at netzeroportal.org to discover how organizations are committing to net-zero and carbon neutrality pledges, and learn how you can take meaningful action towards a sustainable future.