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Fortescue officially launches its first U.S. green hydrogen production facility, Arizona Hydrogen, with soil turn ceremony in Buckeye, Arizona

3 May 2024

Dr. Andrew Forrest AO is joined by state, local, and tribal leaders for launch of facility slated to create over 400 jobs during operations, including 40 direct, high-paying facility jobs during operations, and more than 2,000 jobs during construction.

Today, Fortescue marked a new phase in the development of the company’s $550 million venture into green hydrogen production in the United States, the first of Fortescue’s planned green energy investments in North America with a soil turn ceremony and renaming of our green hydrogen facility in Buckeye, Arizona to Arizona Hydrogen.

At the 158-acre facility site, Fortescue Executive Chair and Founder Dr. Andrew Forrest AO praised the Biden Administration’s commitment to the energy transition, but cautioned there is more work to be done.

“The US has made serious strides in attracting global investment in green hydrogen and decarbonization projects, like Fortescue’s solar and wind-powered Arizona Hydrogen facility. Fortescue is unashamedly a first-mover in this space, the world needs us to move quickly,” Dr Forrest said.

“But, we need to be encouraged to that, not punished. 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 decarbonization. I support the Biden Administration’s goal to produce hydrogen in a way that prioritizes sustainability, however 45V, in its current form, is a straitjacket on the industry and works against the Biden Administration’s own climate goals.”

According to new economic data from NDP Analytics, during the two-year construction phase, Arizona Hydrogen has the potential to create up to 2,244 direct, indirect, and induced jobs that could earn $124.2 million in wages. The facility could add $187.8 million to Arizona’s GDP and generate a potential $31.7 million in income and sales taxes for state and local governments.

During the operation phase, Arizona Hydrogen is expected to employ 40 people at the facility itself, as part of a potential 431 direct, indirect, and induced jobs that could earn $29.3 million in wages. Arizona Hydrogen could also add $59.2 million to Arizona’s GDP, and generate $9.1 million income and sales taxes for state and local governments annually.

Arizona Hydrogen is slated to produce up to 11,000 tons of liquid green hydrogen annually and is strategically positioned to significantly contribute to the decarbonization of the heavy-duty on-road transportation sector. The southwest market consumes approximately 5 billion gallons of diesel annually in heavy-duty transport, making PHH a vital player for reducing emissions in the mobility sector. 

"In recognizing and honoring the traditional lands of the Akimel O’otham and Pee Posh people, we have a profound connection and shared responsibility as stewards of the earth. Companies like Fortescue, are helping to pave the way for a more sustainable and equitable future for our generations to come,” said Stephen Roe Lewis, Governor of the Gila River Indian Community.

“Buckeye is happy to welcome Arizona Hydrogen to the Sustainable Valley,” said Buckeye Mayor Eric Orsborn.

“Fortescue’s investment in our community helps Buckeye, and the entire state of Arizona, continue to grow efficiently and sustainably for generations to come.”

“Today is an exciting milestone for the future of Arizona’s clean energy economy,” said Sandra Watson, President and CEO of the Arizona Commerce Authority.

“Arizona Hydrogen strengthens Arizona’s position as a national sustainability leader at the forefront of clean energy technologies and innovation. We are grateful to Dr. Forrest and the entire Fortescue team for their commitment to Arizona, and we look forward to supporting Fortescue’s long-term success in Buckeye.”