Australian developer Fortescue Future Industries (FFI) and Phoenix-headquartered zero-emissions vehicle firm Nikola have signed a memorandum of understanding (MoU) to collaborate and co-develop large-scale green hydrogen projects in the US. Nikola will act as a potential offtaker for any projects.

“This MoU will establish the framework for future collaborations as strategic partners for the potential co-development of meaningful energy transition solutions, with a focus on the Phoenix Hydrogen Hub project being led by Nikola,” says Michael Lohscheller, CEO of Nikola.

Nikola announced in December that the Department of Energy (DoE) had progressed its loan application for $1.3bn for the Phoenix Hydrogen Hub, which will produce hydrogen from renewables-powered electrolysis, to the second stage of the Innovative Clean Energy Loan Guarantee Program. Pending FID and regulatory approvals, construction will begin on the hub’s first, 30t/d phase and scale up to 150t/d as demand increases.

“North America has the potential to become the world’s leading green energy heartland” Hutchinson, FFI

The DoE has also recently encouraged 33 of the 79 concept papers submitted for the $7bn hydrogen hub funding to proceed to final application in April. Between six and ten hubs are expected to be awarded up to $1bn per hub this summer.

The Inflation Reduction Act (IRA) has also set out a clean hydrogen production tax credit of up to $3/kg, which the Internal Revenue Service  is expected to codify this autumn.

“North America has the potential to become the world's leading green energy heartland,” says FFI CEO Mark Hutchinson. “This new partnership demonstrates FFI's commitment to help decarbonise the transportation sector and enable the world to work towards achieving zero emissions.”

“The incentives in the IRA also make the US one of the best places in the world to invest in green energy and create a pipeline of new jobs,” he adds.

California sun

Separately, Houston-based developer Element Resources has announced plans to construct a 20,000t/yr green hydrogen plant in the city of Lancaster, California. Element plans to use dedicated solar electricity to power the project’s electrolysers.

The development will be located less than 100 miles from the ports of Los Angeles and Long Beach, and is expected to supply end-users throughout the Greater Los Angeles region once it begins commercial operations in 2025.

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Author: Polly Martin