Fortescue Pursues Battery Haul Trucks over Hydrogen - GRT (2024)

After dedicating significant time and resources to hydrogen fuel cell technology, Fortescue has decided to pursue battery-electric technology for its haul truck fleet instead.

Despite initially favouring the Hydrogen Haul Truck model, Twiggy Forrest and his brand are now betting on large-scale battery-electric technology. Initially, the general thinking was that batteries were too large to make sense; however, lighter units have since entered the market, reestablishing battery technology as a realistic option.

While green hydrogen has been all the rage recently, its inefficiencies have led Fortescue and others like Rio Tinto to look elsewhere for alternative energy.

According to Fortescue’s director of decarbonisation, Christiaan Heyning, batteries will win the fight for haul trucks over the next decade.

“We do believe that batteries in trucks are going to be the most favourable solution, maybe not in every single haul, but for most haul routes,” he told the Energy and Mines Australia Summit in Perth last week.“The biggest reason for that is if you don’t use direct electrification, it would need to have hydrogen. Hydrogen requires triple [the] amount of power to do it, so you need a lot more generation capacity, a lot more land disturbance, and more transmission, so there’s a lot of inefficiencies.”

It seems reality is setting in for some of Australia’s most bullish proponents of green hydrogen.

Rio Tinto Partners with H2 for Green Steel Deal

From a failed hydrogen project to a success: Rio has announced a partnership with H2 to supply iron ore pellets to its flagship steel smelter in Boden, Sweden. The mining major will supply H2 Green Steel from its Iron Ore Company of Canada (IOC), allowing the company to establish large-scale low-carbon steel production.

An industrial startup, H2 Green Steel hopes to accelerate the shift towards low-carbon steelmaking via its plant, set to become one of the world’s first large-scale producers of clean iron and steel.

The Boden site, expected to begin operation in 2025, is fully integrated, digitalised, and circular.

It will be able to process direct reduction FE pellets into Hot Briquetted Iron (HBI) and smelt steel via an electric arc furnace powered by green hydrogen. The plant will also house one of the planet’s largest electrolysis plants for producing green hydrogen.

According to H2 chief executive officer Henrik Henriksson, the deal with Rio marks a “significant milestone” for the startup.

“Not only by securing a supply of the high-quality iron ore needed for our green steel production but also because we have a buyer for a portion of the HBI we initially expect to produce,” he said. “Rio Tinto is a global leader in the mining industry, and we welcome its concrete actions to accelerate the decarbonisation of the steel industry.”

Queensland Resources Sector Leading the Way in Diversity Hiring Practices

According to new state figures, the number of young women starting apprenticeships in Queensland’s resources sector has tripled over the past decade. Queensland’s Department of Employment, Small Business and Training reported that more women and Indigenous people increasingly occupy highly paid mining and energy sector roles.

The data also reveals that the completion rate for resource apprentices and trainees is well above the national average.

The Queensland Resources Council (QRC) Chief Executive Ian Macfarlane said the results reflect the work to build a diversified resource workforce.

Women now account for 35% of total apprentice and trainee commencements in Queensland’s resources sector. In addition, the percentage of Indigenous trainees and apprentices in the resources sector rose from 13% to 18% over the same period.

Across the sector, apprentices and trainees are completing their courses at much higher rates than the national average. Success rates are sitting at 76%, which is around 20% higher than the national average for all industries.

The QRC’s educational arm, the Queensland Minerals and Energy Academy, runs workshops and programs to directly support the pipeline of new apprentices in Queensland’s resources sector.

If you’re interested, you can learn more here: https://qmea.org.au/

Dust suppression is a critical issue in the world of mining and resources.

Learn more about GRT’s industry-leading and IoT-connected SMART Dosing Units, and discover how we’re driving better dust suppression solutions for all!

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References:

https://www.afr.com/companies/mining/fortescue-and-rio-say-batteries-will-beat-hydrogen-for-trucks-20230614-p5dgj4

https://www.riotinto.com/en/news/releases/2023/rio-tinto-and-h2-green-steel-partner-to-accelerate-the-green-steel-transition

https://www.qrc.org.au/media-releases/qlds-resources-sector-leads-way-in-attracting-female-and-indigenous-apprentice-and-trainees/

Fortescue Pursues Battery Haul Trucks over Hydrogen - GRT (2024)

FAQs

Fortescue Pursues Battery Haul Trucks over Hydrogen - GRT? ›

“The biggest reason for that is if you don't use direct electrification, it would need to have hydrogen. Hydrogen requires triple [the] amount of power to do it, so you need a lot more generation capacity, a lot more land disturbance, and more transmission, so there's a lot of inefficiencies.”

Will Fortescue and Rio say batteries will beat hydrogen for trucks? ›

Batteries are a better option than hydrogen for mining trucks, say iron-ore miners Fortescue and Rio Tinto. Off-road vehicles such as mining trucks, are often touted as a sensible use case for green hydrogen due to the difficulty in charging batteries in remote areas a long way from power transmission lines.

Which Australian mining companies chose battery electric over hydrogen fuel cell mining trucks? ›

BHP has now joined Rio Tinto and Fortescue in preferring electric mining trucks over hydrogen fuel cell trucks because they are more efficient. Not a little bit more efficient, a lot more efficient. “Each year, our Australian operations use roughly 1,500 [million] liters of diesel in over 1,000 pieces of equipment.

How many miles can a hydrogen truck go? ›

Quick refueling – A notable advantage of hydrogen long haul trucks is their refueling speed. These vehicles can achieve a range of up to 500 miles and can be refueled in about 20 minutes—akin to traditional diesel refueling times.

What is the Fortescue hydrogen plan? ›

Fortescue has a costed plan to decarbonise our Scope 1 and 2 fossil fuel emissions across our terrestrial Australian iron ore operations, while developing projects and technology to help scale green energy and green hydrogen globally.

Is hydrogen fuel better than battery? ›

Yes, hydrogen cars are way better than electric cars in terms of zero harmful emissions, quick refueling, and longer driving range. However, hydrogen cars are quite expensive and inefficient with limited infrastructure, and therefore, electric cars are more convenient, reliable, and a better option to consider.

Will hydrogen replace battery cars? ›

Can hydrogen overtake batteries in cars? “The answer is no,” said Liebreich, without a moment's hesitation. Carmakers betting on a large share for hydrogen are “just wrong”, and heading for an expensive disappointment, he added.

Who does Ford buy lithium from? ›

US automaker Ford has signed long-term lithium supply agreements with Albemarle, SQM and Nemaska Lithium to support the company's expanding electric vehicle production, the companies said May 22.

Who does Toyota buy their lithium batteries from? ›

That's why we are investing, building factories and supplying in the U.S.,” LG Energy Solution CEO Youngsoo Kwon said in an exclusive interview. LG Energy Solution will invest about $3 billion “to establish new production lines for battery cells and modules exclusively for Toyota, with completion slated for 2025.”

Who does GM buy lithium from? ›

Last summer, GM signed three separate supplier agreements with mineral producers LG Chem, POSCO Chemical and Livent for key materials including lithium, nickel, cobalt and cathode active material.

How many MPG does a hydrogen car get? ›

The Mirai is rated at 76/71/74 mpg-e city/highway/combined, but even with my relaxed driving style, our Mirai averaged just 67.8 mpg-e, with a best-ever tank of 77 mpg-e.

What is one disadvantage of hydrogen fuel cells in cars trucks? ›

Pros and Cons of Hydrogen Fuel-Cell Vehicles

There are a few disadvantages, however, the most challenging being the availability of hydrogen fuel. While plans a decade ago called for California to have 100 hydrogen stations by now, in reality, the number is less than 60.

How many miles per gallon does a hydrogen car engine get? ›

A car with a hydrogen internal combustion engine can achieve an average of 62 mpge 2 . Therefore, based on these estimates, a car with a hydrogen fuel cell can go about 152 miles on one gallon of hydrogen gas, while a car with a hydrogen internal combustion engine can go about 62 miles on one gallon of hydrogen gas.

How much is Fortescue debt? ›

The WACC stands at 9.01%. This includes the cost of equity at 9.38%, calculated as Risk-Free Rate + Beta x ERP, and the cost of debt at 5.56%, reflecting the interest rate on FMG's debt adjusted for tax benefits. The weight of debt in the capital structure is 9.58%.

Who owns Fortescue? ›

Governance. As of May 2022 Andrew Forrest is Executive Chairman and owns a third of the company. Dino Otranto is the CEO of Fortescue's Metals division (Aug 2023–), and Mark Hutchinson is the CEO of the Energy division. Former Chief Executive Elizabeth Gaines is now global brand ambassador.

Is FMG a dividend trap? ›

The bottom line is that for stocks like BHP, RIO and FMG, even in the years that they yield 10%, the share price and share price volatility are much more important than the dividend, and rather than invest in these companies for income, you need to time these company share prices and hope they go up over the dividend ...

Will hydrogen overtake batteries? ›

Unlikely. In the UK there have been fewer than 300 sales of hydrogen vehicles over 20 years, compared with 1m electric cars.

What car company is the leader in hydrogen fuel cell automobiles? ›

Leading automakers are investing heavily in the development of this game-changing vehicle fuel cell technology, particularly Toyota and BMW. In a hydrogen fuel cell EV (FCEV),specially-made cells burn hydrogen with oxygen. Hydrogen combustion produces only water and warm air as a byproduct.

Will hydrogen or electric cars win? ›

EVs beat hydrogen-powered cars on most counts, but faster fueling and longer range could be big selling points for hydrogen if a reliable, cleaner and less costly fuel supply system is ever developed.

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