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'Fortescue Future Industries' to disappear as Forrest unites hydrogen and metals businesses under same brand name

But 10% of Fortescue Metals Group's profits will continue to fund green H2 developments

Founder and chairman of Fortescue, Andrew Forrest.
Founder and chairman of Fortescue, Andrew Forrest.Photo: The Washington Post/Getty

Fortescue Metals Group (FMG) and its Fortescue Future Industries (FFI) green hydrogen division have officially been combined into one brand, Fortescue.

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However, the Australian iron-ore company confirms to Hydrogen Insight that there will be no change to the company’s current organisational structure. The two sides of the business will continue to exist as divisions of Fortescue.

The rebrand — which marks 20 years since the company’s founding by now-billionaire Andrew Forrest — also sees the logo for Fortescue Future Industries replacing the original Australia map logo of Fortescue Metals Group, despite being the junior business.

FFI is currently backed by 10% of FMG profits. This has led to analysts at bank Credit Suisse recommending in January that investors ditch shares in the profitable iron ore mining company, due to a lack of clarity on FFI’s project economics and the likelihood that its developments would be a “cash burn into the medium-term”.

However, while Fortescue plans to ultimately invest billions of dollars in green hydrogen projects, in the near term it has a cash pot of $1bn and will only take final investment decisions (FIDs) on five projects this year — in Australia, the US, Kenya, Brazil and Norway this year.

The new Fortescue logo, modelled after the original Fortescue Future Industries logo.Photo: Fortescue

The US is a particular priority due to a generous clean hydrogen production tax credit worth up to $3/kg. Fortescue today (Thursday) announced it was spending $24m to fully acquire the 80MW Phoenix Hydrogen Hub, which is currently going through permitting.

However, its 300MW Holmaneset green hydrogen and ammonia project in Norway has also been chosen for a grant from the EU’s Innovation Fund, raising questions around which project will be brought to FID first.

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Fortescue Future IndustriesGreen hydrogenUSANorwayAustralia
Published 20 July 2023, 11:00Updated 20 July 2023, 11:15