Fortescue founder and Executive Chairman, Dr Andrew Forrest AO, has today announced at APEC that global green energy, metals, and technology company, Fortescue, will rapidly expand its US presence as a direct result of the Inflation Reduction Act (IRA)
Fortescue founder and Executive Chairman, Dr Andrew Forrest AO, has today announced at APEC that global green energy, metals, and technology company, Fortescue, will rapidly expand its US presence as a direct result of the Inflation Reduction Act (IRA). The IRA is demonstrating that countries which incentivise green energy place an economic engine firmly inside their economies, growing employment, careers and the standard of living.
Fortescue will create clean energy opportunities that will benefit the USA and Asia Pacific, today announcing:
Fortescue Executive Chairman and Founder, Dr Andrew Forrest, said, “the IRA makes the United States the most attractive place in the world for green energy and green manufacturing projects. Fortescue is putting the United States at the forefront of our global strategy, with the incentives on offer, a win for both the US and the wider Asia Pacific region.”
“The leadership the USA has shown, specifically matching policy settings to climate risk, will help to accelerate green energy development in the USA and globally.”
“This investment in the next generation of US green energy and manufacturing projects will help decarbonize business and heavy industry, and in turn create a strong economic future and create more American jobs,” Dr Forrest said.
US Advanced Manufacturing Center
Fortescue is investing US$35million to start building a US Advanced Manufacturing Center in Michigan, which has the potential to create up to 600 new jobs in its first phase. It is expected to become a major hub for Fortescue’s production of automotive and heavy industry batteries, hydrogen generators, fast chargers, and electrolyzers.
Fortescue’s new manufacturing center is anticipated to directly benefit from IRA tax credits for Battery Modules, up to US$10 per kWh.
Fortescue Energy CEO, Mark Hutchinson, said, “Michigan and the United States are extremely attractive places to manufacture, given the skilled workforce, existing supply chain and incentives from state and federal governments, including the Inflation Reduction Act.”
Fortescue’s new green energy investment accelerator platform, Fortescue Capital, will be headquartered in NYC and is an integral next step in the company’s commitment to broaden its base of financial partners across its captive pipeline of green hydrogen and planned decarbonization investments.
Fortescue Capital will be led by Robert Tichio as CEO and Managing partner, seeking to accelerate green energy projects in the United States and around the world, creating jobs sooner and stimulating further economic growth in the green energy transition.
Fortescue Capital CEO, Robert Tichio, said, “Fortescue has made public commitments to invest in a first-generation infrastructure investment program as it marches towards final investment decisions across its pipeline of green hydrogen, ammonia, and fertilizer projects in North and South America, Europe, Africa and Australia. It has communicated to the market an intention and desire to bring additional investors to these captive projects, and Fortescue Capital is an integral tool of engagement as we embark on that mission.”
“Fortescue has demonstrated unmatched leadership in calling for capital formation to large scale, industrial solutions that can provide durable and high-impact decarbonization pathways for difficult-to-decarbonize, emitting categories.”
Fortescue’s US Projects
The Phoenix Hydrogen Hub (PHH) in Arizona is on track to go to the Fortescue board for Final Investment decision this calendar year.
Phase One of the PHH has the potential to create up to 300 direct jobs during construction, and as many as 40 direct jobs during peak operation. If FID is granted, the first production of green hydrogen from the PHH project is expected by the middle of this decade.
The facility is planned to be an 80MW electrolyzer 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. The PHH project has further capacity to scale up production to help meet future demand.
In a further demonstration of the incentives available in the United States, Fortescue’s Centralia project in Washington has been selected, as part of the Pacific Northwest Hydrogen Hub, to receive funding from the US Department of Energy’s Office of Clean Energy Demonstrations (OCED).
The OCED funding would support Fortescue’s participation in the Hydrogen Hub through the advanced planning, detailed design, environmental permitting, and procurement of long lead equipment.
The project is currently in the design stage, with full permitting to follow. Project construction is anticipated to start in 2026 and continue into 2028, subject to a Final Investment by the Fortescue board.
Dr Andrew Forrest, said, “The IRA has changed the US from a laggard to a world leader in clean energy, creating jobs at home, fighting climate change and spurring development amongst trading partners. Fortescue is at the forefront of building the infrastructure, electrolyzers, batteries and production in the US, Australia, and several other APEC countries.”