The hunt is on for a new CEO at Fortescue Metals Group Limited (ASX: FMG). This new CEO will need to be focused on driving the green transformation of the business.
New CEO needed at Fortescue
Fortescue may have built its reputation as an iron ore mining giant. However, the leadership of the business firmly see the future pivoting towards the green industrial side of the business: Fortescue Future Industries (FFI).
In an announcement to the market last week, Fortescue confirmed that it was transitioning the business to become a vertically integrated green energy and resources group.
Fortescue boasted that it has developed a major green, fully renewable hydrogen initiative. It said that its focus and significant industrial, project engineering and development capacity, has resulted in the largest portfolio of green hydrogen, green ammonia, green iron ore and other green product developments.
It was decided that a new CEO was needed to lead the development of the diversified renewables and resources business. The outgoing CEO, Elizabeth Gaines, will transition to the roles of non-executive director of Fortescue and become its global green hydrogen brand ambassador.
Twiggy explains the new role
Dr Andrew Forrest, the founder of Fortescue, said the company has benefited from the forward thinking of the company’s leadership. He said:
The search with Elizabeth, for a CEO and an even deeper management bench, is an enormous opportunity for a talented and visionary executive team, to continue the successful leadership of Fortescue, as we deliver on our strategy to diversify Fortescue to a renewable energy and resources company.
Fortescue Future Industries is making enormous progress and will support the decarbonisation of Fortescue through the innovation and technological development of a green fleet and the supply of green energy. We are undergoing a significant transition, and I am delighted that with Elizabeth, the board is united in its vision and enthusiasm for the opportunity this presents.
Fortescue noted in the announcement that it will be looking for leaders with exceptional skills and global experience across heavy industry, manufacturing and renewable energy. They will also have a strong track record of delivering transformation, innovation and enhanced value for stakeholders. It’s important for the candidate to share the culture and values to assist the company as it moves to become a diversified energy and resources business.
What is Fortescue Future Industries working on?
FFI’s FY22 expenditure is expected to be between US$400 million to US$600 million.
It has announced a large number of different agreements, initiatives and projects.
For example, it has announced the construction of a (global) green energy manufacturing centre in Gladstone, Queensland. The first stage development is an electrolyser factory with an initial capacity of two gigawatts.
It has also signed a letter of intent with Plug Power for a 50:50 joint venture for the electrolyser factory, with the ability to expand into fuel systems and other hydrogen-related refuelling and storage infrastructure in the future.
Fortescue Future Industries also recently announced that it would work with AGL Energy Ltd (ASX: AGL) to repurpose its coal-fired power plant sites in NSW to generate green hydrogen. The idea is to generate green hydrogen from water using renewable energy at the Hunter Valley Liddell and Bayswater coal-fired power stations.
Dr Andrew Forrest said:
FFI’s goal is to turn regional Australia into the global green energy heartland and create thousands of jobs now and so many more in the future.
Repurposing existing fossil fuel infrastructure with forward looking companies like AGL to create green hydrogen to help power the world, is the solution we have been looking for.
The post Search for new Fortescue (ASX:FMG) boss focused on green ‘transformation’: Twiggy appeared first on The Motley Fool Australia.
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More reading
- 5 things to watch on the ASX 200 on Monday
- Fortescue (ASX:FMG) Future Industries signs Indonesian hydrogen deal
- ASX 200 (ASX:XJO) midday update: Fortescue CEO steps down, Westpac buyback update
- Fortescue (ASX:FMG) share price falls following surprise CEO exit
- Why did the AGL share price outperform the ASX 200 today?
Motley Fool contributor Tristan Harrison owns Fortescue Metals Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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