Australia’s Fortescue has broken ground on its first US green hydrogen production facility in Arizona to produce up to 11,000 tonnes of liquid green hydrogen annually for the heavy-duty transportation sector.
Dubbed Arizona Hydrogen, the plant is part of Fortescue’s $500m venture into the US green hydrogen market, but its founder believes there is more work that needs to be done when it comes to the Biden Administration’s commitment to the energy transition.
At the soil turn ceremony for Arizona Hydrogen in Buckeye, Dr. Andrew Forrest, founder and Executive Chair of Fortescue, aired his concerns.
He said, “There are rules right now under consideration with the Biden Administration that would make already announced projects like this one dramatically more expensive and smaller, resulting in fewer economic opportunities and slower progress on decarbonisation.”
“I support the Biden Administration’s goal to produce hydrogen in a way that prioritises sustainability; however, 45V in its current form is a straitjacket on the industry and works against the Biden Administration’s own climate goals.”
Forrest further said that hydrogen producers need to be encouraged and not punished.
According to economic data from NDP Analytics, Arizona Hydrogen could add up to $187.8m to Arizona’s GDP and generate a potential $31.7m in income and sales taxes for state and local governments.
Fortescue acquired the project from US zero-emission truck manufacturer Nikola in July 2023. At the time of the announcement, it was hoped that the project would target its first hydrogen production by the middle of this decade.
Sandra Watson, President and CEO of the Arizona Commerce Authority, described the news as an exciting milestone for the future of Arizona’s clean energy economy.
She concluded, “Arizona Hydrogen strengthens Arizona’s position as a national sustainability leader at the forefront of clean energy technologies and innovation. We are grateful for the entire Fortescue team for their commitment to Arizona, and we look forward to supporting Fortescue’s long-term success in Buckeye.”
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