Australian mining giant Fortescue has announced plans to boost spending on its energy division, focusing on advancing several new green hydrogen projects in the coming year. This decision comes despite recent job cuts and a restructuring of the company.

Fortescue will increase capital expenditures for its energy division to $500 million, up from the initial plan of $300 million. Additionally, net operating expenses are expected to rise to around $700 million, an increase from the previously anticipated $500 million.

The company will initially concentrate on four key projects in Australia, the United States, Norway, and Brazil, with additional projects planned for Morocco, Oman, Egypt, and Jordan. This move reaffirms Fortescue's commitment to developing green hydrogen technology, despite scaling back its ambitious 2030 production targets.

The increased spending has surprised analysts who expected the company's recent restructuring and job cuts to lead to reduced capital outlay. Fortescue recently announced a 4.5% reduction in its global workforce and merged its metals and green energy businesses, which had been separated into distinct divisions a year ago.

Mark Hutchinson, head of Fortescue Energy, emphasized the company's steadfast commitment to scaling up and commercializing green hydrogen. However, he stressed that financial discipline remains a priority, stating that projects must be economically viable.

The company also plans to focus on producing "green iron," which is iron produced with a lower carbon footprint. Fortescue aims to begin green iron production at its Christmas Creek operations before the end of next year.

This increased investment in green energy comes as Fortescue reported record quarterly iron ore shipments, demonstrating strong performance in its core mining business while pushing forward with its decarbonization efforts.