Fortescue’s Green Energy Investment Takes Root in Arizona
In a significant stride towards establishing a green energy footprint in the United States, Fortescue Future Industries (FFI) has announced a $24 million investment to fully acquire Phoenix Hydrogen Hub, LLC (PHH). This move marks FFI’s first major venture in the U.S. since the passage of the Inflation Reduction Act.
Located in Buckeye, Arizona, the PHH project is poised to develop a green hydrogen facility. The first phase includes an 80MW electrolyzer and liquefaction plant, aimed at producing up to 12,000 tonnes of liquefied green hydrogen annually. This production could potentially replace 10 million gallons of diesel per year, underscoring the project’s capacity to expand in response to future demand.
FFI’s investment aligns with the company’s rebranding as “Fortescue,” uniting Fortescue Metals Group and FFI as a singular global entity focused on metals and green energy. This change coincides with the 20th anniversary of the Fortescue brand.
FFI CEO Mark Hutchinson highlighted the job creation potential of the PHH project, with an expected production start by mid-decade. He stated, “FFI is actively expanding its U.S. presence and strengthening its position as a leading global developer of green energy production and technology. We are committed to helping turn North America into a world-leading global green energy producer.”
The acquisition from Nikola Corporation, a leader in zero-emissions transportation, positions Nikola as a prospective customer for the green hydrogen produced. This will support their deployment of hydrogen fuel cell electric vehicles and refueling stations in California and the Southwest U.S.
Michael Lohscheller, President and CEO of Nikola Corporation, commented, “Nikola’s priority is to see more zero-emission trucks on the road and this investment by FFI will greatly strengthen one of the country’s first and most important hydrogen hubs.”
Arizona is set to benefit from state-level incentives like California’s Low Carbon Fuel Standard, alongside the federal hydrogen tax credit outlined in the Inflation Reduction Act. Sandra Watson, President and CEO of the Arizona Commerce Authority, noted, “FFI’s investment further establishes Arizona as a national hydrogen leader.”
Buckeye Mayor Eric Orsborn expressed the city’s commitment to attracting clean energy businesses, stating that the new facility enhances Buckeye’s green technology portfolio.
The PHH project is nearing the end of its permitting process, and significant equipment procurement is underway. The project is expected to reach Fortescue’s Board for a final investment decision later this year.
For more information about FFI and its initiatives, visit Fortescue.com.
Learn more about the Arizona Commerce Authority’s economic development efforts at azcommerce.com and follow their updates on Twitter @azcommerce.
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