PERTH (miningweekly.com) – The green energy arm of iron-ore major Fortescue Metals, Fortescue Future Industries (FFI), on Monday announced that it would evaluate the feasibility of converting the former Centralia coal mine, in the US, into a green hydrogen production facility.

The green energy company has entered into a binding exclusivity agreement with the Industrial Park at TransAlta (IPAT) in Washington.

The proposed FFI green hydrogen production plant would enable the decarbonization of hard-to-abate sectors of the North American economy and support the development of a Pacific Northwest green hydrogen hub, potentially creating hundreds of new local jobs.

The company said on Monday that the Centralia coal-fired power plant adjacent to the IPAT project site was scheduled to close in 2025. Subject to the outcome of the feasibility studies, FFI’s intention would be to seek to employ the existing coal workforce for the proposed project, facilitating a transition into the emerging green energy economy.

FFI chairperson and founder Dr Andrew Forrest said the company’s goal is to turn North America into a leading global green energy heartland and create thousands of green jobs now and more in the future.

“Repurposing existing fossil fuel infrastructure to create green hydrogen to power the world is part of the solution to saving the planet. The signing of this agreement is another important step in turning the corner once and for all, to implement the technologies carbon emitters need to reach net zero.”

FFI has been working with the Lewis County Energy Innovation Coalition and Lewis Economic Alliance to undertake due diligence efforts on the project to date.

“With the closing of the coal mine and the scheduled retirement of the Centralia coal-fired power plant, IPAT was formed to redevelop the site and attract investment that will support well-paid, long-term employment opportunities in the region. FFI’s potential project represents the opportunity to do just that,” Lewis Economic Alliance executive director Richard DeBolt said.

FFI on Monday also announced that it would apply for a US Department of Energy (DoE) Hydrogen Hub Program grant in collaboration with Pacific Northwest stakeholders.

The Hydrogen Hub Program was enacted under the Bipartisan Infrastructure Law and is being implemented by the DoE.

“The electric power grid of the Pacific Northwest is one of the lowest carbon power grids in the world and can be used to produce green hydrogen, and could extend the region’s low carbon leadership to hard-to-electrify sectors like long-haul trucking, ports, aviation and heavy industry,” FFI CEO for North America Paul Browning said.

“Together with other Pacific Northwest stakeholders, we plan to use legacy fossil fuel infrastructure and workforce to produce green hydrogen and pursue a growing zero-carbon economy in Lewis County and the Pacific Northwest region.” 

FFI is working with a number of Pacific Northwest stakeholders, including Puget Sound Energy, Washington Maritime Blue, Twin Transit and the Lewis County Energy Innovation Coalition, and is hoping to work with more to support the development of a Pacific Northwest Hydrogen Hub.

FFI is progressing discussions with the Lewis County Energy Innovation Coalition to investigate developing hydrogen applications in the Centralia-Chehalis twin cities. This includes working with bus transit operator, Twin Transit, to decarbonize commuter buses and other heavy transport operations.