Australian green hydrogen developer Fortescue Future Industries (FFI) has made its first significant move into the US market by buying the Phoenix Hydrogen Hub project in Buckeye, Arizona from fuel-cell truck manufacturer Nikola for $24mn.

“FFI is actively expanding its US presence and strengthening its position as a leading global developer of green energy production and technology,” said FFI CEO Mark Hutchinson. “The US is now one of the best places in the world to do this, with the Inflation Reduction Act [IRA] making it an ideal place to invest in green energy.”

Phase one of the project, which is in the final stages of the permitting process, is planned to consist of an 80MW electrolyser and liquefaction facility capable of producing up to 12,000t/yr of liquified green hydrogen. The project has further scope to scale up production in line with future demand.

“The US is now one of the best places in the world to do this, with the IRA making it an ideal place to invest in green energy” Hutchinson, FFI

It is anticipated the project will go to the FFI board for FID this year, with first production expected by the middle of this decade. Nikola, which has a manufacturing base at Coolidge, Arizona, is a potential offtaker.

FFI’s executive chairman and founder Andrew Forrest, a leading proponent of green hydrogen and an outspoken critic of blue production routes, recently signalled his interest in the US market and the support for projects offered by the IRA. “Now there is nowhere in the world compared to North America. If you are a responsible executive of any public company, then you will be putting your green energy dollars into North America,” he told the FT’s Hydrogen Summit in London.

Elsewhere, FFI is working on green hydrogen and ammonia projects in Australia, Norway, the Democratic Republic of Congo and Argentina.

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Author: Stuart Penson