Fortescue Metals Group drives green mining fleet dream further with deal for Williams Advanced Engineering

Andrew Forrest’s Fortescue Metals Group will take battery power from the race track and put it to work in the mining industry with the acquisition of a UK technology and engineering company linked to Formula One racing legend Frank Williams.

The £164 million ($310m) deal will help Fortescue grow its green energy ambitions and also decarbonise its fleet of heavy mining machinery as it works to cut its reliance on diesel and meet a self-imposed net-zero emissions target for its operations by 2030.

Fortescue said on Monday it had entered into a share sale and purchase agreement to take full control of Williams Advanced Engineering from private equity firm EMK Capital and Williams Grand Prix Engineering.

WAE has been working with green energy subsidiary Fortescue Future Industries since early last year to design and build a prototype battery system that can power an electric mining haul truck as Mr Forrest pushes ahead with plans to decarbonise Fortescue’s mining haul fleet in the Pilbara.

Mr Forrest said the deal builds on the miner’s commitment to remove fossil fuel-powered machinery from its operations and to replace it with zero carbon emissions technology, powered by FFI green electricity, green hydrogen and green ammonia.

“For decades, Sir Frank Williams’ F1 racing business was at the forefront of innovation in engineering and I thank him for his pioneering vision in founding WAE over a decade ago,” Mr Forrest said.

“I was sorry to hear of his passing last year and I pay tribute to him. I have huge respect for him, his family and the Williams’ business.”

Fortescue said the acquisition would provide critical technology and expertise in high-performance battery systems and establish an important new business growth opportunity for FFI by growing WAE’s business through the development and manufacturing of electric batteries and hydrogen fuel cells for the global heavy mobile equipment and rail market.

Outgoing Fortescue chief executive Elizbeth Gaines said WAE would help the company eliminate the use of diesel across its mining fleet.

“There’s the opportunity for us to also sell this technology to others as we advance the decarbonisation of heavy industry,” Ms Gaines said.

One of the first major projects to be developed between FFI and WAE will be a battery electric train concept, with more details due to be released later this year.

WAE chief executive Craig Wilson said the deal would support the delivery of zero emissions products and services across existing automotive, motorsport and off-highway sectors and also help it find new markets.

“We are delighted to play a key role in Fortescue’s decarbonisation strategy, contributing to the delivery of their emissions reduction targets through high performance battery systems, green hydrogen and related technologies,” Mr Wilson said.

“We will also be focusing on addressing the sector-wide challenges in the off-highway sector. Both companies have a shared culture of innovation, setting and achieving stretch targets and a genuine commitment to creating a sustainable future.”

WAE emerged from a 2010 move by Williams Grand Prix Engineering — co-founded by former team owner and race driver Sir Frank — to diversify its operations and now employs about 400 people.