The fourth largest iron ore producer in the world announced Tuesday it will spend $6.2 billion in five-year period starting in 2024 to become completely carbon neutral by 2028, with annual savings of $818 million starting in 2030, the Associated Press reports.

Fortescue Metals Group announced the plan to replace fossil fuel energy sources with renewable energy generators, which will produce 2- to 3-gigawatts for its operations.  It will also transition its fleet of cars and trucks to electric or alternative fuel vehicles, and it will also update equipment to alternative fuels if such versions are available.

The company plans on going “true net-zero emissions” for its operations, without the need to purchase carbon offsets regularly and incorporating them only when there’s an emergency.  The switch will keep 3.3 million tons of carbon, carbon dioxide and other greenhouse gases out of the environment annually. 

Fortescue chairman Andrew Forrest said the western Australian company said the plan will “set an example that a post-fossil fuel era is good commercial common sense. … Consistent with Fortescue’s disciplined approach to capital allocation, this investment in renewable energy and decarbonization is expected to generate attractive economic returns for our shareholders through energy cost savings and a sharp reduction in carbon offset purchases, together with a lower risk-cost profile and improvement in the integrity of our assets,”