ARKANSAS, Nov 18 (Future Headlines)- Australian mining company Fortescue Metals is planning to invest $35 million in setting up an advanced manufacturing center in the U.S. state of Michigan. The manufacturing center will focus on producing automotive and heavy industry batteries, hydrogen generators, fast chargers, and electrolyzers. Fortescue aims to take advantage of the U.S. Inflation Reduction Act (IRA) and expects the center to become a major hub for its production activities. The IRA provides tax credits for battery modules, offering up to $10 per kilowatt-hour.
The investment aligns with Fortescue’s strategy to leverage the IRA and tap into the U.S. market as a favorable location for green energy and manufacturing projects. The company views the U.S. as a key player in its global green energy development strategy. Fortescue’s executive chairman, Andrew Forrest, emphasized the significance of this investment in advancing the next generation of U.S. green energy and manufacturing projects. The initiative aims to contribute to the decarbonization of business and heavy industry while fostering economic growth and job creation in the U.S.
The new manufacturing center will add to Fortescue’s expanding presence in the green energy sector. The company recently established Fortescue Capital, its green energy investment arm, headquartered in New York City. This move is expected to help Fortescue secure financing for its planned green hydrogen and decarbonization projects.
One of Fortescue’s key projects, the Phoenix Hydrogen Hub (PHH) in Arizona, is awaiting a final investment decision by the board. The PHH project involves the construction of an 80MW electrolyzer and liquefaction facility with the capacity to produce up to 12,000 tons per year of liquified green hydrogen. The company anticipates that this hydrogen production will displace the equivalent of 10 million gallons per year of diesel consumption.
In addition to its Arizona project, Fortescue’s Centralia hydrogen project in Washington State has been selected as part of the Pacific Northwest Hydrogen Hub to receive funding from the U.S. Department of Energy’s (DOE) Office of Clean Energy Demonstrations (OCED). The company will enter into negotiations with OCED following the project’s selection.
Fortescue’s investments in the U.S. reflect its commitment to expanding its footprint in the green energy sector and supporting the global transition toward sustainable and renewable technologies. The company’s focus on advanced manufacturing for batteries, hydrogen, and other clean energy solutions underscores its dedication to contributing to a low-carbon future.
Reporting by Kevin Wood; Editing by Sarah White