The firm intends to spend $35mn on the advanced manufacturing centre, expecting it to become a major hub for Fortescue's production of automotive and heavy industry batteries, hydrogen generators, fast chargers and electrolysers. It also expects to directly benefit from IRA tax credits for battery modules of up to $10/kWh.
The IRA makes the US the most attractive place for green energy and manufacturing projects, with the country at the forefront of its global green energy development strategy, Fortescue's executive chairman Andrew Forrest said.
"This investment in the next generation of US green energy and manufacturing projects will help decarbonise business and heavy industry, and in turn create a strong economic future and create more American jobs," Forrest said on 17 November.
The iron ore giant announced its new green energy investment arm, Fortescue Capital, will be headquartered in New York City and help broaden its financing base across its planned green hydrogen and decarbonisation investments.
Fortescue's Phoenix Hydrogen Hub (PHH) in Arizona state will go to the board for a final investment decision this calendar year, the firm said. Plans for phase one of the project include an 80MW electrolyser and liquefaction facility, capable of producing up to 12,000 t/yr of liquified green hydrogen.
The company spent $24mn to acquire 100pc of PHH in July. It said the hydrogen would displace the equivalent of 10mn gallons/yr (238,000 bl) of diesel consumption.
The firm also announced that its Centralia hydrogen project in Washington state has been selected, as part of the Pacific Northwest Hydrogen Hub, to receive funding from the US Department of Energy's (DOE's) Office of Clean Energy Demonstrations (OCED).
Award negotiations begin with OCED following selection of a project, according to the DOE website.
