Melanie Burton and Sonali Paul

MELBOURNE, (Reuters) – Australia could lose its edge in green energy revolution if leaders fail to immediately commit to cutting carbon emissions until 2050. This was the warning from Andrew Forrest, founder of Fortescue Metals Group, (OTC).

Fortescue’s growth from a tiny mine to one of the largest mining companies in the world took Forrest less than 20 years. He has been a leader of Fortescue’s green energy efforts, signing agreements from Brazil to Indonesia and now to the Democratic Republic of Congo.

Forrest stated that the company plans to construct a 250-megawatt hydrogen electrolyser in Bell Bay, Tasmania for less than A$1billion ($740 million). This price will be the lowest in Australia.

Fortescue has indicated that he is willing to invest the final amount this year. However, he is still waiting on support from the state government in order for him to proceed with the project.

Forrest said that Australia is the best country to achieve his green vision. But, Australia’s refusal to implement a plan to lower emissions puts at risk that advantage.

“For Australia, 2050 neutrality seems a certain thing. It will bring substantial dividends to Australia if we endorse it at COP26. Forrest spoke out in reference to the COP 26 climate conference, which took place in Glasgow, at the end October.

He said that “the renewable energy, the green hydrogen, and green ammonia industries are very, very mobile.”

“It is there where the will to prevail – they’ll be the first ones developed.”

Australia’s energy policy will once again be in the limelight as Scott Morrison, Prime Minister of Australia, prepares for the conference. This is where leaders from around the world will gather to discuss climate change and further goals that can be achieved following the 2015 Paris agreement.

Morrison, though, is lacking in updated climate ambitions due to his reliance upon the coalition partner from Australia which stated it wouldn’t be rushed to make a decision whether to support the target of net zero emissions for 2050.

Nationals representing coal and the farming areas worry that higher emission targets could lead to job losses. The country’s second largest exporter is coal.

Speaking to Reuters, Forrest said from London that the largest winners would be rural Australians if they can reach agreements in time.

Forrest stated that he had invested in the region despite Australia being the one dragging the chain,” Forrest said to Reuters.

Fortescue is looking into the possibilities of changing Incitec Pivot’s Brisbane ammonia plants to green hydrogen. With an electrolysis plant on site, Fortescue can produce as much as 50,000 tonnes of hydrogen per year.

Forrest explained that the future of the plant was under serious threat from soaring gas prices. But, setting up a green hydrogen production station to supply it with hydrogen could create 400 new jobs.

Local farmers will also benefit from lower prices for the products of the plant.

Forrest explained that Australia farmers will be able to plan well into the future, allowing them to prepare for next year or the next generation. He also said that fertilisers come from an infinite hydrogen molecule.