OPINION: The billionaire is using higher energy prices to push for subsidies for his hydrogen business, which some investors believe is a vanity project.
‘Vanity project’
“While FMG [Fortescue Metals Group] has stated that capital allocation toward FFI [Fortescue Future Industries] will continue to be 10 per cent of NPAT [net profit after tax], some market participants are concerned about the competition between the company’s decarbonation and renewable commitments and shareholder returns,” unnamed analysts at Macquarie Group wrote last month.“Andrew Forrest is not a god” last month about his hydrogen ambitions, he rang to offer feedback.
. “And I can say to every fossil fuel executive, ‘why are you doing what you’re doing?’ You’ll have to answer: ‘Because I’m getting paid’.” Anthony Albanese came to power on May 21 promising to create a “renewable energy superpower”, which fitted perfectly with the Forrest agenda. The success of “teal” independents and the Greens – who oppose any new coal or gas projects – added to the hostile environment towards Forrest’s competition.In a couple of weeks, the entire political environment has changed. Labor’s resources minister now likes gas so much. Gas shares are up 30 per cent over the past year. Fortescue is down 5 per cent.
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