Fortescue to proceed with hydrogen, green metal projects in US, Australia

Australia’s Fortescue Metals Group (ASX:FMG) on Tuesday said its board has approved a final investment decision (FID) on two green energy projects and a green metal project, representing a combined investment of USD 750 million (EUR 685m) over the next three years.

This initial set of green hydrogen projects includes an 80-MW electrolyser and liquefaction facility in Arizona, US, a 50-MW green hydrogen project in Queensland, Australia and a green iron trial commercial plant in Western Australia.

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“Diversity in technology and geography at conservative scales for Fortescue projects reflects our disciplined approach to learning while we do, prior to large scale investments,” said Fortescue Energy chief executive Mark Hutchinson. The board has also chosen to fast-track projects in Brazil, Kenya and Norway.

The Phoenix Hydrogen Hub in Arizona will be able to produce up to 11,000 tonnes per year of liquid green hydrogen, starting in 2026. This USD-550-million project will establish Fortescue in one of the most attractive energy markets in the world, supported by the Inflation Reduction Act, according to the announcement. Its market strategy will be to pursue offtake agreements and merchant market sales.

The Gladstone PEM50 project in Queensland will demonstrate Fortescue’s own electrolyser technology. It will require an investment of up to USD 150 million over two phases, of 30 MW initially and a subsequent installation of 20 MW, with first production expected in 2025. The project will be built next to Fortescue’s Gladstone electrolyser manufacturing facility.

Fortescue will also invest up to USD 50 million to build a green iron trial commercial plant at Christmas Creek that will produce more than 1,500 tonnes a year. The project will use existing green hydrogen and green electricity from solar generation, hematite and magnetite ore production capacity and existing infrastructure and technical capacity.

(USD 1 = EUR 0.913)