Australian miner Fortescue is paring back its global green hydrogen ambitions, shelving its Arizona hydrogen and PEM50 projects in a major reset, while its core iron-ore operations delivered a record-breaking performance for the 2025 financial year.

The company, whose founder Andrew Forrest had touted hydrogen as a future revenue stream, now says its project pipeline is being refined “in a disciplined manner” to ensure commercial viability and long-term returns.

“Over the past year we have refined and reconsidered our global project pipeline with a sharpened focus on commercial outcomes,” said newly appointed CEO of growth and energy Gus Pichot on Thursday. “That’s meant making some tough decisions."

“Being first is not always easy, but to succeed, we must remain nimble and frugal with the resources our shareholders have entrusted with us. I want to make it clear we are not giving up," he said in a conference call.

"Green energy and green hydrogen is key to our future, including our green metal strategy. Technology is improving at rapid speed. The cost will come down and the market will come, but we must also be realistic and disciplined."

An assessment is under way to repurpose the assets and the land. Fortescue expects a pre-tax write-down of $150-million relating to the expenditure on the PEM50 project, electrolyser manufacturing equipment in Gladstone and engineering costs for the Arizona hydrogen project.

Explaining Fortescue’s decision to ditch the projects, Pichot said a shift in policy priorities away from green energy in the US had changed the situation for its Arizona hydrogen project. “The lack of certainty and a step back in green ambition has stopped the emerging green energy markets making it hard for previously feasible projects to proceed.”

At the PEM50 project, Fortescue had made a strategic shift away from electrolysers to focus on advancing technologies to provide low-cost hydrogen for green industry in Australia. “This change in direction is vital for the progress of our green iron ambitions. However, it means that the PEM50 project is no longer needed to test that technology,” he explained.

The move marks a recalibration for Fortescue, once seen as among the most aggressive champions of green hydrogen. 

CEO of metals and operations Dino Otranto emphasised that operational excellence remained the company’s foundation. “Fortescue’s performance this year has been exceptional,” he said. “We delivered record quarterly shipments of 55.2-million tonnes, contributing to a record full year total of 198.4-million tonnes. We met all aspects of our market guidance and cemented our position as the industry’s lowest-cost producer, with our annual C1 cost declining for the first time since FY20.”

IRON-ORE OUTPERFORMANCE
The miner shipped 198.4-million tonnes of iron-ore in the 2025 financial year, a 4% increase from the 2024 financial year. This includes 7.1-million tonnes from the Iron Bridge project, which continues its staged ramp-up.

Hematite C1 costs declined to $17.99 a wet metric tonne (wmt) for the year, marking the first yearly reduction since 2020. Fourth-quarter C1 costs dropped even further to $16.29/wmt.

Iron Bridge shipped 2.4-million tonnes in the fourth quarter and achieved a revenue of $108 a dry metric tonne, fully realising the Platts 65% index and outperforming the Platts 62% benchmark.

Fortescue ended the financial year with $4.3-billion in cash and a net debt of $1.1-billion, despite $3.9-billion in capital expenditure.

The group’s 2026 shipment guidance stands at 195-million to 205-million tonnes, including 10-million to 12-million tonnes from Iron Bridge, with C1 costs forecast between $17.50/wmt and $18.50/wmt.

Entering the new financial year, Otrano said Fortescue was building on 2025's momentum, focusing on safely ramping up Iron Bridge, breaking new production records and accelerating decarbonisation efforts, including the advancement of green iron.

"Having returned from China last week, it’s clear there is strong support from both Australia and China to collaborate on a green iron and steel supply chain which would drive investment, strengthen trade ties and eliminate emissions at scale."