Australian Firm FFI Dives into U.S. Market with Phoenix Hydrogen Hub Acquisition
(P&GJ) — Australian green hydrogen developer Fortescue Future Industries (FFI) has made its first move into the U.S. market by purchasing the Phoenix Hydrogen Hub (PHH) project in Buckeye, Arizona, from fuel-cell truck manufacturer Nikola for $24 million.
This strategic acquisition represents FFI's entry into the American market and signifies its commitment to expanding its presence and investments in the United States.
This agreement is fully aligned with Nikola's capital efficient energy strategy to collaborate with partners interested in the hydrogen energy ecosystem that Nikola is pioneering.
The PHH is a fast-to-market, green hydrogen project located near Phoenix, in the city of Buckeye, Ariz., and is expected to be built in phases to scale alongside demand. The project is expected to progress towards its first hydrogen production by the middle of this decade.
"Nikola's priority is to see more zero-emission trucks on the road and this acquisition by FFI will greatly strengthen one of the country's first and most important hydrogen hubs," Michael Lohscheller, Nikola’s president and CEO, said. "FFI's acquisition of this project is a significant milestone as we work to create an all-important local connective infrastructure to accelerate the use of hydrogen to fuel zero-emission vehicles."
PHH marks the first project announced as part of the memorandum of understanding signed in January 2023 between the two companies to collaborate on and evaluate the co-development of large-scale U.S. green hydrogen production facilities.
FFI and Nikola are working towards a hydrogen supply agreement to support Nikola's hydrogen fuel cell electric vehicle demand. The large-scale deployment of hydrogen as a zero-emission fuel into the transportation sector, is expected to benefit from both the hydrogen tax credit in the federal Inflation Reduction Act and state level incentives such as the Low Carbon Fuel Standard in Calif.
"This investment by FFI will greatly strengthen one of the country's first and most important hydrogen ecosystems and it is a significant milestone in creating the all-important local connective infrastructure to accelerate the use of green hydrogen," FFI CEO Mark Hutchinson said.
The PHH project is currently going through the final stages of its permitting process, and the procurement of long-lead equipment is well underway.
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