Why the Fortescue (ASX:FMG) share price is slipping today

The Fortescue share price has dipped today amid news the company met Jordanian officials to discuss hydrogen energy.

| More on:
A woman in a green garden shrugs her shoulders, indicating confusion over a company share price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Fortescue Metals Group Limited (ASX: FMG) share price is falling slightly today amid news that the company met with Jordanian government officials to discuss hydrogen energy, with few other details revealed.

The Fortescue share price is down 0.54% to $20.25 today.

Fortescue is one of Australia's largest miners, involved primarily in the exploration, development, production, processing and sale of iron ore. Unlike Australia's other large mining companies, however, it has a net-zero emissions target by 2030.

Fortescue's hydrogen shift 

In recent years, Fortescue chair Andrew Forrest has been one of Australia's most vocal proponents of shifting towards renewable energy. The company recently announced plans to become carbon neutral by 2030.

Fortescue is planning to shift towards producing hydrogen energy and ammonia, which was the stated purpose of its meeting with Jordanian officials.

It's been a busy few months in this space for the Australian mining giant. Fortescue recently signed an agreement with South Korean steel manufacturer Posco to collaborate on a hydrogen-production partnership.

It signed similar deals with South Korea's Hyundai and the Commonwealth Scientific and Industrial Research Organization last year.

Fortescue, hydrogen and the Middle East

A delegation from Fortescue met with Jordanian Planning Minister Nasser Shraideh to explore and discuss investment opportunities. Forrest has recently returned from a world tour scouting potential hydrogen-producing destinations.

Shraideh reportedly gave a presentation on Jordan's investment environment and spoke of the government's clean energy plans, suggesting the Middle Eastern country is keen on attracting Fortescue's investment. Australia's Jordanian ambassador also attended the meeting.

The Middle East appears to be emerging as the go-to destination for hydrogen energy producers, with the world's largest hydrogen plant recently opened in Saudi Arabia.

The plant is being opened near the Jordanian border in Neom, a planned new mega-city built around the burgeoning renewable energy industry.

Neom, in many ways, is targeted to be the new centre of world hydrogen production, and the Jordanian government may be keen to profit and replicate from the emerging industries on their doorstep.

But Jordan is already developing a highly effective renewable energy industry of its own. Jordan is scheduled to raise renewable electricity production to 2,400 megawatts this year, accounting for approximately 22% of the country's total requirements.

Fortescue share price snapshot

The Fortescue share price has fallen 18% since the beginning of 2021. Despite these losses, it's still up more than 74% over the past 12 months, largely due to high iron-ore prices.

Motley Fool contributor Lucas Radbourne-Pugh 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.

More on Resources Shares

Miner looking at a tablet.
Resources Shares

What happened with the BHP share price in May?

Did you buy BHP shares in May? Here’s how much the ASX 200 miner returned.

Read more »

Miner looking at a tablet.
Resources Shares

Should I buy Fortescue shares today?

A leading investing expert offers his verdict on the outlook for Fortescue shares.

Read more »

A female miner wearing a high vis vest and hard hard smiles and holds a clipboard while inspecting a mine site with a colleague.
Resources Shares

Is this a good time to buy BHP shares?

Should investors jump on the ASX mining shares right now?

Read more »

Miner looking at a tablet.
Broker Notes

Why Macquarie expects this ASX 200 copper stock to surge 36% in a year

Macquarie forecasts some hefty gains ahead for the ASX 200 copper miner. But why?

Read more »

A young African mine worker is standing with a smile in front of a large haul dump truck wearing his personal protective wear.
Resources Shares

Following its FY25 result, Macquarie tips more than 40% upside for this ASX All Ords mining stock

Let’s dig into why this is such an exciting stock.

Read more »

Miner looking at a tablet.
Resources Shares

Macquarie forecasts 30% upside for this ASX All Ords mining stock

If a broker is right, investors have a lot to gain with this stock.

Read more »

Miner looking at a tablet.
Resources Shares

Should I buy Pilbara Minerals or Mineral Resources shares? Here's Macquarie's take

Mineral Resources and Pilbara Minerals shares are both down more than 60% in a year, but Macquarie forecasts a big…

Read more »

Miner looking at a tablet.
Resources Shares

Does Macquarie rate Fortescue shares a buy, hold or sell?

Down 42% in a year, does Macquarie think Fortescue shares are now a good buy?

Read more »