Fortescue Future buys up “fast moving” US green hydrogen project

Fortescue Future Industries, the green energy arm of Andrew “Twiggy” Forrest’s Fortescue Metals Group, has spent $US24 million to buy the company behind a proposed green hydrogen project in Arizona in the US.

The hydrogen project – run by company Phoenix Hydrogen Hub LLC – is aiming to build an 80MW electrolyser and liquification plant to produce up to 12,000 tonnes of green hydrogen a year. Currently the project is still in the final stages of getting permits.

“FFI is actively expanding its US presence and strengthening its position as a leading global developer of green energy production and technology,” said CEO Mark Hutchinson.

“We are committed to helping turn North America into a world-leading global green energy producer.”

FFI says this is its first “major move” into the US after the Biden government’s Inflation Reduction Act was unveiled. The Act provides incentives and support mechanisms for green businesses and has been matched by the EU but not by Australia.

Hutchinson has flagged in the past that FFI would seek out and focus on markets that were more profitable for green companies.

“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,” he said.

“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.”

With the new acquisition, FFI has six major hydrogen projects across the world poised to reach a Final Investment Decision this year.

There’s two more in the US that aim to supply green hydrogen for heavy transport. Projects in Kenya, Brazil and Norway are using hydrogen to create green ammonia for fertiliser.

Back in Australia, FFI is currently fitting out an electrolyser manufacturing facility, which it says will be able to produce 2GW worth of hydrogen electrolysers a year.

This new project in Arizona will be at least partially providing green hydrogen for vehicles, as the company who is selling the hydrogen project is an affiliate of Nikola Corporation, which manufacture hydrogen fuel cell vehicles.

FFI also announced that Fortescue Metal Group and FFI would come together as a single brand – Fortescue. This was told to staff at the 20-year anniversary of the company.