Own Fortescue shares (ASX: FMG)? The ASX 200 miner has just passed a new green milestone
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Fortescue Metal Group Limited (ASX: FMG) resisted the broader selling trend hitting the S & P / ASX 200 Index (ASX: XJO) in the New Year.
Late afternoon yesterday Fortescue shares have remained partially in the green so far in 2022, while the ASX 200 was down nearly 3%.
This will be good news for shareholders, who have seen the miner struggle since August amid falling iron ore prices.
But Fortescue stocks are supported by more than the price of iron ore.
As part of its broader global sustainability campaign, the company has also been actively working on developing green hydrogen production through its subsidiary, green energy company Fortescue Future Industries (FFI).
In a further demonstration of its commitment to zero emissions, the company announced a new step in its decarbonisation strategy.
Electrified locomotive fleet
ESG-focused investors holding Fortescue shares will welcome the company’s latest announcement regarding its locomotive fleet.
The miner bought 2 new battery-powered electric locomotives to transport the iron ore he mined to the port. According to the press release, the locomotives have an energy capacity of 14.5 megawatt hours. They will be built on the site of Progress Rail, a Caterpillar company based in Brazil.
Commenting on the purchase, Elizabeth Gaines, CEO of Fortescue, said:
The purchase of these new battery-powered locomotives marks an important step in the decarbonization of Fortescue’s locomotive fleet and demonstrates our commitment to achieve carbon neutrality for Scope 1 and 2 emissions by 2030, as we diversify. from a producer of pure iron ore to a renewable green. and resource society.
Gaines added that the battery-powered trains would not only reduce the miner’s operating emissions, but would also reduce fuel costs and maintenance expenses.
Fortescue expects the first new locomotive to arrive on site in 2023.
How have the Fortescue shares performed?
Falling iron ore prices from record highs in mid-2021 put pressure on Fortescue shares. Over the past year, the miner’s stock price has fallen 20% from a 12% gain posted by the ASX 200.
Longer term, Fortescue is up 86% in 2 years and 229% in 5 years. At the current Fortescue share price, it pays an 18% dividend yield, fully franked.