Forrest lashes energy messaging, nuclear advocates

Andrew Forrest has used a National Press Club address to hit out at fossil fuels and nuclear energy, while calling on Australian policy makers to “get on with” facilitating a renewable revolution.

In a wide-ranging address, Mr Forrest likened fossil fuels producers to tobacco companies while accusing nuclear advocates – including The Nationals – of pushing the industry “so they don’t have to do anything for 20 years”.

He said renewable energy was putting up the most obvious economic symbols he had seen over his lifetime, but that Australia needed the courage to execute.

“I ask those who claim to represent the bush now to stop dividing us with the false hope that we can cling to fossil fuels forever,” Mr Forrest said.

“If we follow this new lie that we should stop the rollout of green energy and that nuclear energy will be our fairy godmother, we will be worse off again.”

Mr Forrest invoked the words of his late father, Don Forrest, when calling on the government to push ahead with renewables.

His comments were in contrast to those of fellow billionaire Gina Rinehart, who endorsed nuclear as an energy solution at a regionally focused business event late last year with reference to an anecdote from her late father Lang Hancock.

Mr Forrest also called out the fossil fuels industry, which he accused of pushing nuclear as a diversion tactic to cloud the debate.

The billionaire businessman said traditional energy producers were destroying the country and called for the implementation of a levy on the industry.

“Australia’s hard working teachers, nurses and retail workers pay more income tax and GST paid by the entire fossil fuel industry,” he said.

Mr Forrest singled out Chevron, highlighting that the company paid $30 of income tax in Australia in 2020. Chevron's income tax liability increased to around $4.2 billion by the end of 2022.  

“The ridiculousness of the rich crying out for more fossil fuel subsidies while denying climate change will surely go down as one of the most perversely selfish behavours in Australian history,” he said.

Mr Forrest called for a ‘carbon solutions levy’ to be applied to fossil fuel producers.

“This would act like the tobacco tax in Australia already has,” he said.

“At the time, that tobacco tax was gutsy policy that was accused of business interference, saddling consumers with unnecessary cost and [imposed on] an industry that roundly proclaimed smoking wasn’t bad for your health.

“That worked out well, didn’t it.”

The comments followed furore last year when Mr Forrest suggested oil and gas leaders should have their heads put on spikes.

Mr Forrest suggested a best for Austalia test, measuring the climate impacts of new major project approvals, similar to one being explored in the US.

He also called for the nation to firmly lean into renewables as the climate solution and build renewables quicker.

Mr Forrest again praised policy settings in the US, where Fortescue is progressing a liquid green hydrogen project in Arizona with the backing of incentives under the Inflation Reduction Act.

Fortescue missed out on the shortlist for hydrogen project support under the $2 billion Hydrogen Headstart initiative in December.

Mr Forrest also revealed his company Squadron Energy would lead an industry-wide fund to cover the future decomissioning of renewable infrastructure, and called on the government to regulate the sector to ensure industry does the same. 

Addressing turnover, nickel woes

The Forrest business empire has made headlines repeatedly over the past year for unexpected exits at senior management and executive level.

Mr Forrest said a high rate of turnover over the past year was symptomatic of the company’s shift in focus, and downplayed suggestions that there was a “conga line” out the doors.

“We employ 22,000 people,” he said.

“When you go from being a fossil-fuel burning company to a green energy company you are going to lose a few people who say ‘What are you doing? You’ve got this fantastic economic model, you’re the most successful company for shareholder returns in decades in our country.

“'Why are you fiddling around with it?'

“The reason is, we want to continue that track record, we’re not happy just sitting on our laurels with what we’ve achieved already.

“So lots of people think that’s not for them, and I think that’s completely fine.”

Mr Forrest said Fortescue operated at around half the turnover of the mining industry, and that the empire’s revolving door was settling down.

“I think that Dino [Otranto], Shelley [Robertson] and Hutch [Mark Hutchinson] are a really great team,” he said.

“They’re working super well together.”

Mr Forrest, whose Wyloo Metals recently announced the closure of its Kambalda nickel operations due to depressed nickel pricing, said the market needed to price in clean nickel products to give buyers a choice of more sustainable product.

“If you’ve got dirty nickel in your battery systems then you want to know about that, because you don’t want to propagate that, and you want the choice to buy clean nickel if you can,” he said.

“The London Metals Exchange must differentiate between dirty and clean; they’re two different products, they have two vastly different impacts.”

Mr Forrest said he hadn’t looked closely at a production tax credit scheme, but that the idea seemed to make a lot of sense.