ESG Focus: ASX200 Off And Running, Part 2 – FNArena

Rio Tinto announced a partnership in October with Bluescope Steel to use Rio Tinto ores in developing low-carbon pathways for steel development, with the specific nomination of green hydrogen for the Port Kembla plant.

Fortescue Metals appears to be a laggard on downstream partnerships, although much of its iron ore goes to China and China is going hell for leather at decarbonising its steel operations.

Management says it is the first step-change for electrolysers in 50 years and that it will get the industry comfortably to under $2 by 2025.

According to Credit Suisse, hydrogen production has just comfortably cracked the $2/kg mark and will be commercially available at that price by 2025.

On top of that, much of the carbon-capture budget is likely to be directed to biodiversity which should hit markets within the next 18 months – maintaining forests – with Brazil already scoring major concessions to stop deforestation of the Amazon at the last COP25.

As a carbon play, Santos is succeeding.

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