Fortescue to buy Nikola’s hydrogen hub

The Phoenix Hydrogen Hub project, shown in this artist rendering, is currently going through the final stages of its permitting process, and the procurement of long-lead equipment is well underway. (Illustration: Nikola Corp.)

Nikola Corp.’s HYLA brand and Fortescue Future Industries (FFI) have announced that FFI will acquire Nikola’s Phoenix Hydrogen Hub (PHH) project. FFI will bring the capital and resources required to fully develop the project and the parties are working towards a hydrogen supply agreement to support Nikola’s Class 8 zero-emission trucks.

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 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,” said Nikola Corp. President and CEO Michael Lohscheller. “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 is actively expanding its U.S. presence and strengthening its position as a leading global developer of green energy production and technology. We are committed to helping turn North America into a world-leading global green energy producer,” said FFI CEO, Mark Hutchinson. “This is an exciting opportunity to work towards a fast-moving project that will lead the way in the U.S., creating new green industrial jobs for Americans, while also helping to reduce emissions once production begins.”

FFI and Nikola will work toward 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 the hydrogen tax credit in the federal Inflation Reduction Act and state level incentives such as the Low Carbon Fuel Standard in California.

“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,” said Hutchinson. “This demonstrates FFI’s commitment to decarbonizing hard-to-abate sectors like transport and moving the world beyond fossil fuels.”

The PHH project is currently going through the final stages of its permitting process, and the procurement of long-lead equipment is well underway.

Fortescue Future Industries (FFI) is building a global portfolio of renewable green hydrogen and green ammonia projects. FFI is also developing and acquiring the technology and energy supply to help decarbonise the iron ore operations of one of the world’s largest producers of iron, Fortescue Metals Group, by 2030.