Fortescue Future Industries (FFI) has made its first major move in the United States following the passage of the Inflation Reduction Act, investing $24m to acquire a 100% interest in Phoenix Hydrogen Hub, LLC (PHH), according to a news release.
FFI is acquiring PHH from an affiliate of Nikola Corporation.
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 80 MW electrolyzer 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 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 U.S. presence and strengthening its position as a leading global developer of green energy production and technology,” Mr Hutchinson said.
“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,” he added in the news release.
Nikola provides 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 U.S. Southwest.
“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,” said Nikola Corporation President and CEO, Michael Lohscheller.
The large-scale deployment of hydrogen as a zero-emission fuel into the transportation sector is expected to benefit not only from the hydrogen tax credit in the Inflation Reduction Act, but also state level incentives such as the Low Carbon Fuel Standard in California.
Buckeye Mayor, Eric Osborn said: “Buckeye is committed to attracting clean energy businesses to the city, especially near the Sustainable Valley area. This facility adds to our ‘green’ portfolio making Buckeye the perfect location for similar technologies to expand and grow in our community.”
Sandra Watson, President and CEO of the Arizona Commerce Authority, said: “FFI’s investment further establishes Arizona as a national hydrogen leader. FFI will advance Arizona’s efforts to create a clean hydrogen ecosystem and build upon initiatives among industry and academia, including the Southwest Clean Hydrogen Innovation Network (SHINe), which is focused on developing a Southwest clean hydrogen hub.
