Australia to propose tax incentives for critical minerals
The proposed law will set up a tax incentive worth 10% of relevant processing and refining costs for 31 critical minerals.
Fortescue Metals Group’s (ASX: FMG) green energy arm has bought a 60% stake in Dutch renewable firm High yield Energy Technologies (HyET), as part of the iron ore major’s plan to supply 15 million tonnes of green hydrogen globally by 2030.
Fortescue Future Industries (FFI) said the acquisition included HyET’s solar and hydrogen businesses, which will help the parent company with its green goals, one of the most ambitious in the industry. The value of the deal was not disclosed.
FMG, the world’s fourth largest iron ore producer, became earlier this week the first major miner to commit to achieving net zero scope 3 emissions, those produced by its customers, including steel makers, by 2040.
Through FFI, FMG plans to spend between $400 million and $600 million in the year to June 2022 on developing green transport and decarbonization technologies. The miner also expects to cut down costs at its Powerfoil factory in Australia from the acquisition.
As part of the deal, FFI will provide a majority share of financing for the expansion of HyET Solar’s Dutch Solar photovoltaics factory.
“Green energies need to be available at an industrial, global scale. We don’t have time to wait, we have to act now,” FFI founder and Fortescue chairman Andrew Forrest AO said in the statement.
“The technologies of the HyET companies will help us reach that tipping point and the world will begin the journey in earnest to become zero-carbon,” he noted.
SuperNova NV, the founding partner of the HyET Group of companies, and Royal Vopak of Rotterdam, The Netherlands, remain the only other shareholders in both companies.
