Fortescue to Invest $35mn in US Advanced Manufacturing Centre for Green Energy Production
Australian metals and green energy firm Fortescue is set to invest $35mn in an Advanced Manufacturing Centre in Michigan, aiming to capitalize on the opportunities provided by the US Inflation Reduction Act (IRA). The center will serve as a key production hub for Fortescue’s automotive and heavy industry batteries, hydrogen generators, fast chargers, and electrolysers. By leveraging the tax credits offered by the IRA, the company expects to benefit from tax incentives of up to $10/kWh for battery modules.
Fortescue’s executive chairman, Andrew Forrest, believes that the IRA has positioned the US as the ideal location for green energy and manufacturing projects, making it the global leader in green energy development strategy. Forrest emphasizes that this investment in next-generation US green energy and manufacturing ventures will contribute to the decarbonization of businesses and heavy industries, while also creating a strong economic future and generating more jobs for Americans.
Further expanding its green energy initiatives, Fortescue has established its investment arm, Fortescue Capital, which will be based in New York City. This move aims to enhance the company’s financing capabilities for its planned green hydrogen and decarbonization ventures. Additionally, Fortescue’s Phoenix Hydrogen Hub (PHH) in Arizona is undergoing final evaluation for investment, with the project’s first phase encompassing an 80MW electrolyser and liquefaction facility capable of producing 12,000 t/yr of liquified green hydrogen. The acquisition of PHH in July, a $24mn investment, will result in the displacement of 10mn gallons/yr (238,000 bl) of diesel consumption through hydrogen production.
In another significant development, Fortescue’s Centralia hydrogen project in Washington state has been selected to receive funding from the US Department of Energy’s Office of Clean Energy Demonstrations (OCED) as part of the Pacific Northwest Hydrogen Hub. The company will now engage in award negotiations with OCED to secure the funding.
Fortescue’s ambitious green energy projects align with its commitment to sustainability and decarbonization. By investing in advanced manufacturing centers and capitalizing on tax incentives, the company aims to contribute to the global transition towards cleaner and more sustainable energy solutions. With its manufacturing hub in Michigan, Fortescue will play a vital role in the growth of the green energy sector, enabling the US to maintain its position as a frontrunner in the field.
