Fortescue Metals Group has launched a dedicated capital entity to support its green future.
Headed up by Robert Tichio, Fortescue Capital has been labelled Fortescue’s “new green energy investment accelerator platform” with the responsibility to deliver “greater returns for shareholders”.
Fortescue Energy chief executive officer Mark Hutchison said the platform provides further consolidation of the company’s green ambitions.
“Fortescue is taking its global pipeline of green hydrogen and green ammonia projects to final investment decision, and in doing so has communicated our intention and desire to bring additional equity investors onboard,” he said.
“Further, Fortescue has previously communicated its planned investment to decarbonise its Pilbara operations, and we see Fortescue Capital as an essential tool of engagement as we embark on both missions.”
Tichio will be joined by a team of New York-based executives with experience in funding green projects. Nathan Craig, Rael McNally and Jennifer Zarrilli will all serve as managing directors of Fortescue Capital.
“Fortescue has demonstrated unmatched leadership in calling for capital formation to support large-scale, industrial solutions that can provide durable and high-impact decarbonisation pathways for difficult-to-decarbonise emitting categories,” Tichio said.
“I am thrilled to join the talented and passionate team at Fortescue to bring these projects to a global set of institutional investors.”
Tichio will report to Hutchinson, alongside a board consisting of Tichio and Hutchinson, alongside Jean Baderschneider and Mark Barnaba.
Fortescue Capital’s funding rationale will differ on a project-to-project basis. The investment arm will hold equity stakes of between 25–50 per cent in each project, alongside third-party investors.
Fortescue sees “sovereign wealth funds, pension funds, endowments, insurance companies and ultra-high net worth family offices” as desired investors.
The establishment of Fortescue Capital comes as the major miner looks to establish its renewable energy roots in the Pilbara region of WA, having recently applied for 150,000 hectares of land near its iron ore mines.