Fortescue Future Industries (FFI) has made its first major move in the United States following the passage of the Inflation Reduction Act, investing US$24M to acquire a 100 per cent interest in Phoenix Hydrogen Hub, LLC (PHH).
PHH is developing a proposed green hydrogen project located near Phoenix, in the city of Buckeye, Arizona.
Phase One of the PHH project is planned to be an 80MW electrolyser and liquefaction facility, capable of producing up to 12,000 tonnes of liquified green hydrogen annually, which can displace the equivalent of 10 million gallons of diesel consumption per year.
The PHH project has further capacity to scale up production to help meet future demand.
FFI CEO Mark Hutchinson said first production of green hydrogen from the PHH project is expected by the middle of this decade.
“This investment by FFI will greatly strengthen one of the country’s first and most important hydrogen ecosystems and it is a significant milestone in creating the all-important local connective infrastructure to accelerate the use of green hydrogen.
“This is an exciting opportunity to work towards a fast-moving project that will lead the way in the U.S., creating new green industrial jobs for Americans, while also helping to reduce emissions once production begins.
“The U.S. is now one of the best places in the world to do this, with the Inflation Reduction Act making it an ideal place to invest in green energy.
FFI is acquiring PHH from an affiliate of Nikola Corporation. Nikola, whose trucks are manufactured in Coolidge, Arizona, will be a potential customer of liquified green hydrogen from the hub to support the deployment of its heavy-duty, zero-emission hydrogen fuel cell electric vehicles and hydrogen refuelling stations in California and the U.S. Southwest.
Nikola Corporation President and CEO, Michael Lohscheller said: “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.”
The PHH project is currently going through the final stages of its permitting process, and the procurement of long-lead equipment is well underway. It is anticipated the project will go to the Fortescue Board for a Final Investment Decision this year.
It has also been announced that Fortescue Metals Group and FFI will come together as one brand “Fortescue” to represent being a unified global metals and green energy company.
The move, which comes after 20 years with the FMG brand, is to coincide with Fortescue’s 20-year anniversary.