PERTH (miningweekly.com) – Green energy developer Fortescue Future Industries (FFI) has announced a $24-million investment to acquire the Phoenix Hydrogen Hub (PHH), marking its first major investment in the US following the passage of the Inflation Reduction Act.
PHH is developing a proposed green hydrogen project located near Phoenix, Arizona. Phase 1 of the PHH project is planned to be an 80 MW electrolyser and liquefaction facility, capable of producing up to 12 000 t/y of liquified green hydrogen, which can displace the equivalent of 10-million gallons of diesel consumption a year.
The PHH project has further capacity to scale up production to help meet future demand.
FFI CEO Mark Hutchinson says FFI’s investment in the PHH has the potential to create hundreds of jobs. First production of green hydrogen from the PHH project is expected by the middle of this decade.
“FFI is actively expanding its US presence and strengthening its position as a leading global developer of green energy production and technology,” Hutchinson says.
“We are committed to helping turn North America into a world-leading global green energy producer.
“This is an exciting opportunity to work towards a fast-moving project that will lead the way in the US, creating new green industrial jobs for Americans, while also helping to reduce emissions once production begins. The US 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.
“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 demonstrates FFI’s commitment to decarbonizing hard-to-abate sectors like transport and moving the world beyond fossil fuels.”
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
FFI is acquiring PHH from an affiliate of Nikola Corporation. Nikola is a global leader in zero-emissions transportation and energy supply and infrastructure solutions.
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 US Southwest.