Fortescue Metals Group Ltd has taken a final investment decision (FID) on the Phoenix Hydrogen Hub and the Gladstone PEM50 Project in Queensland, Australia.
The company will also advance a third project utilizing green hydrogen to trial the production of green iron ore in Western Australia.
Other projects selected to be fast tracked by Fortescue’s are Pecem in Brazil, Project Chui in Kenya and Holmaneset in Norway.
The estimated total investment in the three approved projects is approximately $750m over the next three years. These are three of the first green hydrogen deals ever to be progressed to FID in the United States and Australia, with a pipeline of projects to follow which will significantly scale up Fortescue’s global green energy production.
The Phoenix Hydrogen Hub is an 80 MW electrolyzer and liquefaction facility in Arizona, USA with production capacity of up to 11,000 tonnes per annum of liquid green hydrogen. Total investment is approximately $550m, with first production in 2026.
The total capital investment for phase one is approximately $550m, inclusive of $24m previously approved for the acquisition of the project in July 2023. The total capital expenditure includes approximately $250m on equipment, including electrolyzers, liquefaction plant, power infrastructure and hydrogen storage; and approximately $250m 5 on site construction, EPC contractor and owner’s costs. Capital expenditure is estimated at $80m in FY24.
The project will initially be 100 per cent funded by Fortescue, with an intention to raise project debt and equity funding.
The Gladstone PEM50 Project is a 50 MW green hydrogen project utilising Fortescue’s own electrolyzer technology. Total investment is up to $150m, with first production in 2025.
