Aussie miner Fortescue sets up an investment platform to fund green. As the miner shifts its focus toward establishing itself as a prominent worldwide provider of green energy, Australia’s Fortescue (FMG.AX) announced on Thursday that it has developed a new investment platform to attract further investment in its renewable energy projects.
Fortescue stated that Robert Tichio would lead New York-based Fortescue financing, which will function as a fiduciary for third-party financing and supplement the company’s existing finance teams in its energy and metals divisions.
“Fortescue is taking its global pipeline of green hydrogen and green ammonia projects to a final investment decision, and in doing so, it has communicated our intention and desire to bring additional equity investors on board,” said Mark Hutchinson, Fortescue Energy’s chief executive officer.
According to the company’s statement, Fortescue anticipates owning project shares, with outside investors contributing 25% to 50% of the total value. The funding strategy for projects will vary depending on the project.
Fortescue has dramatically increased its investment in renewable projects in recent years to capitalize on the worldwide shift towards green energy and decarbonization. However, this decision has resulted in the departure of high-level management and has caused investors to have worries about the company.
After spending over 17 years at Riverstone Holdings, a private equity business in New York, Tichio has decided to join Fortescue. Alongside him on the leadership team will be people with experience in environmentally friendly infrastructure, climate technology, the energy industry, and private markets.