'Cringe-inducing': Fortescue (ASX:FMG) boss takes aim at ScoMo over clean hydrogen claims

Andrew 'Twiggy' Forrest is pushing back on the federal government's energy claims.

| More on:
a man dressed in a green superhero lycra outfit stands in a crouched pose with arms outstretched as if ready to spring into action with a blue sky and oil barrels lying in the background.

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

Key points

  • Fortescue shares are up 3.2% to $22.22
  • Fortescue chair Andrew Forrest ramps up his campaign disputing the federal government's claim that coal and gas-based hydrogen is 'clean energy'
  • Former prime minister, and current FFI chair, Malcolm Turnbull also weighs in on the debate

The Fortescue Metals Group Ltd (ASX: FMG) share price is on the rise during early afternoon trade on Tuesday.

It comes after Fortescue chair Andrew Forrest intensified his campaign against the federal government's promotion of coal-made hydrogen as 'clean energy'.

At the time of writing, the iron ore producer's shares are up 3.2% to $22.22 apiece.

Fortescue amplifies 'clean energy' campaign

Making headlines today, Forrest took out a full-page colour advert in the Australian Financial Review challenging the federal government's clean energy claims.

In the statement, Forrest rejected the Morisson government's assertion that coal and gas-generated hydrogen can be billed as 'clean'.

Forrest believes the term 'clean hydrogen' should be swapped for 'green hydrogen', which is made from renewable energy.

It's worth noting the mining giant's green offshoot Fortescue Future Industries (FFI) is focused on producing renewable hydrogen.

The company is aiming to generate 15 million tonnes of green hydrogen annually by 2030. 

Last week, the world's first liquefied hydrogen tanker, the 116-metre Suiso Frontier, picked up coal-made hydrogen from Victoria's La Trobe Valley.

The ship successfully loaded the hydrogen bound for Japan. The shipment is part of a $500 million pilot project hosted by AGL Energy Ltd (ASX: AGL)'s Loy Yang A brown coal-fired power station to produce hydrogen for Japanese giant Kawasaki Heavy Industries.

Brown coal, considered the dirtiest of its group, along with gas, produces emissions from burning fossil fuels.

Following the ship's departure, Forrest commented that it should not be an opportunity to "pretend brown hydrogen is exporting green energy to the world".

In 2021, FFI took on Australia's biggest oil and gas companies over gas-produced hydrogen not being acceptable as 'clean energy'. A senior executive from FFI spoke out saying that the so-called 'blue hydrogen' depends on carbon capture or offsets.

In addition, former prime minister and current FFI chair Malcolm Turnbull called coal and gas-produced hydrogen 'a con'.

He also said that carbon capture storage (CSS) is a 'no goer', citing it's yet to reach commercial-scale suitable for reducing emissions.

Fortescue share price summary

Up until the end of July, the Fortescue share price was enjoying strong gains, hitting an all-time high of $26.58. That all came crashing down in the following months with the company's shares touching a low of $13.90 in early October.

Since then, Fortescue shares have rebounded to around the halfway levels achieved in the first half of 2021.

On valuation metrics, Fortescue commands a market capitalisation of roughly $68 billion and has approximately 3.08 billion shares on issue.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. 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.

More on Resources Shares

A man with a wide, eager smile on his face holds up three fingers.
Resources Shares

3 reasons to buy this surging ASX All Ords mining stock today

A leading broker expects this Aussie mining share could surge 26% and begin paying dividends.

Read more »

A smiling woman holds up an apple with a laptop open on her desk.
Resources Shares

Rare earths shares charge as Apple weighs in

Tech giant commits to $500 million deal with MP Materials.

Read more »

Three miners wearing hard hats and high vis vests take a break on site at a mine as the Fortescue share price drops in FY22
Resources Shares

Why Infratil, Iluka Resources, Lynas Rare Earths shares are jumping higher today

These three ASX 200 shares are gaining ground today.

Read more »

Ecstatic woman looking at her phone outside with her fist pumped.
Resources Shares

Guess which ASX mining share is jumping 10% on big news

This miner is having a good session on Wednesday. What's going on?

Read more »

A young woman sits with her hand to her chin staring off to the side thinking about her investments.
Resources Shares

Should I switch my ASX 200 banking stocks for ASX 200 miners before earnings season?

The ASX 200 Index is dominated by Australia's bank and materials/mining sectors, which together account for around half of the…

Read more »

Miner looking at a tablet.
Resources Shares

Does Wilson Asset Management prefer Rio Tinto or BHP shares?

Which miner is in favour?

Read more »

Two smiling men in high visibility vests and yellow hardhats stand side by side with a large mound of earth and mining equipment behind them smiling as the Carnaby Resources share price rises today
Resources Shares

Macquarie tips this ASX 200 resources stock to soar nearly 40%

Big returns could be on offer here according to the broker.

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Resources Shares

Bell Potter says this ASX 200 mining stock can rise ~30%

Let's see why this miner could be destined to deliver big returns over the next 12 months.

Read more »