Australia’s Fortescue Future Industries (FFI) has announced a plan to look into repurposing a coal plant for green hydrogen production in the US state of Washington.

FFI says the green hydrogen production plant would enable the decarbonisation of hard-to-abate sectors of the economy and support the development of a Pacific Northwest green hydrogen hub—potentially creating hundreds of local jobs.

The Centralia facility—Washington state’s only coal-fired plant—is adjacent to the proposed green hydrogen site and is scheduled to close in 2025. The nearby coal mine is also being shut down.

FFI hopes to employ existing coal workers, easing the transition for the local economy. Retraining workers from fossil fuel industries such as coal—which is being phased out as the energy transition progresses because of its cost and carbon risk—is a pressing political issue in the region.

The hub would use electricity from the Pacific Northwest grid, which comes largely from hydropower, according to Paul Browning, CEO of FFI North America.

“The electric power grid of the Pacific Northwest is one of the lowest-carbon power grids in the world” Browning, FFI

“The electric power grid of the Pacific Northwest is one of the lowest-carbon power grids in the world and can be used to produce green hydrogen and could extend the region’s low-carbon leadership [in] hard to electrify sectors like long-haul trucking, ports, aviation and heavy industry,” he says.

FFI also plans to use legacy fossil fuel infrastructure in the hydrogen hub, according to chair Andrew Forrest.

“Repurposing existing fossil fuel infrastructure to create green hydrogen to power the world is part of the solution to saving the planet,” he says.

Ambitious targets

Washington has the most ambitious emissions-reducing climate and energy policies of any US state. Fuel suppliers must cut the carbon intensity of their fuels by 20pc by 2038, and state-wide greenhouse gas emissions must be slashed by 95pc by 2050.

FFI will also apply for a grant from the US Department of Energy’s Hydrogen Hub Program in collaboration with Pacific Northwest stakeholders. The programme was enacted under the Bipartisan Infrastructure Law, adopted in 2021.

According to the infrastructure law, four hubs will be created with $9bn of public funds. Competition for the funds is intense, with regions forming coalitions to vie for the funding.

The Pacific Northwest stakeholders that FFI is collaborating with so far include utility Puget Sound Energy, marine development group Washington Maritime Blue, local transport player Twin Transit and regional body the Lewis County Energy Innovation Coalition.

FFI is a subsidiary of Australia-based Fortescue Metals Group, the world’s fourth-largest iron ore producer.

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Author: Ros Davidson