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Fortescue launches its first green hydrogen plant in the United States

Fortescue announces a new milestone in its green hydrogen project in Arizona, marking an investment of $550 million.

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Australian company Fortescue has celebrated the launch of its firstgreen hydrogen projectin North America. The ceremony inaugurated the first stage of production at the Buckeye facility, renamed Arizona Hydrogen. Andrew Forrest, executive chairman and founder of Fortescue, stressed the importance of the US government’s support for this project. However, he also warned that the rules proposed by the Biden administration could limit the project’s impact by making it more costly and less productive to complete. Forrest supports the President’s goal of sustainability, but believes that current 45V legislation could hold back the industry and thwart the country’s climate goals.

Economic contribution and employment

According to NDP Analytics, the Arizona Hydrogen project could create up to 2,244 direct and indirect jobs during construction, for a total of $124.2 million in wages. Once operational, the facility would directly employ 40 people, contributing to the creation of 431 direct and indirect jobs. The site could contribute $59.2 million to Arizona’s GDP and generate $9.1 million in annual taxes for local and state governments.

Importance of the transport sector

With a production capacity of 11,000 tonnes of liquid hydrogen per year, Arizona Hydrogen is targeting the heavy-duty transportation market in the southwestern United States. The region consumes five billion gallons of heavy-duty diesel annually. The Fortescue project can significantly reduce emissions in this sector by providing a clean alternative.

Support from local stakeholders

Local leaders welcome the project. Stephen Roe Lewis, Governor of the Gila River Indian Community, expressed the deep connection between Fortescue and the lands of the Akimel O’otham and Pee Posh peoples. Eric Orsborn, Mayor of Buckeye, welcomes the investment, which supports sustainable growth in the region. Sandra Watson, CEO of the Arizona Commerce Authority, emphasizes Arizona Hydrogen’s place in the state’s clean energy economy and thanks Fortescue for its commitment to the region.

The $550 million investment in Arizona Hydrogen is the first step in the development of a thriving green hydrogen industry in North America. Local stakeholders agree on the economic, environmental and social benefits of this ambitious project.

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