Fortescue buys hydrogen project, rebrands FFI
Fortescue Future Industries is a step closer to becoming a hydrogen producer after agreeing to pay $US24 million ($35.19 million) for an undeveloped American project.
Acquisition of the Phoenix Hydrogen Hub project in Arizona means Fortescue could soon be using an electrolyser on the outskirts of Phoenix to split water and make liquefied green hydrogen to displace diesel in trucks.
The project is still obtaining its final permits, but now appears likely to be one of the “at least” five clean energy projects that Fortescue takes a final investment decision on before the end of 2023.
“The PHH project is currently going through the final stages of its permitting process, and the procurement of long-lead equipment is well under way,” the company said.
It is anticipated the project will go to the Fortescue board for a final investment decision this year.
The project was acquired from an affiliate of controversial US company Nikola, which aspires to make hydrogen trucks but is better known for being targeted by short-sellers and the troubles of its former chairman, Trevor Milton, who was found guilty of securities fraud in 2022.
Nikola shares lost 96 per cent of their value between June 2020 and January 2023, but the stock has rebounded of late.
Fortescue said Nikola could be a future customer for the green hydrogen made at PHH.
“Phase one of the PHH project is planned to be an 80-megawatt electrolyser 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,” said Fortescue in a statement.
“The PHH project has further capacity to scale up production to help meet future demand.”
Fortescue
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