Nikola, Fortescue collaborate on U.S. green hydrogen projects
25 January 2023
Nikola Corp., a global supplier of zero-emissions transportation and energy supply and infrastructure solutions, and green energy company Fortescue Future Industries (FFI) announced the execution of a memorandum of understanding (MoU) to collaborate on and evaluate the co-development of large-scale green hydrogen production facilities in the U.S.
FFI, a subsidiary of global iron ore producer Fortescue Metals Group Ltd., is currently pursuing hydrogen project development opportunities in more than 25 countries. It is acquiring and developing technology solutions for hard-to-decarbonize industries, it noted, while building a global portfolio of renewable energy, green hydrogen and green ammonia projects.
Under the terms of the MoU, Nikola – which has a large demand for green hydrogen to decarbonize the transportation sector and other industries – will evaluate offtake opportunities from any other green hydrogen projects being pursued by FFI in the U.S. The parties will also evaluate the potential co-development of new green hydrogen production and associated infrastructure projects.
FFI’s experience and capabilities in hydrogen project development, including its ambitious decarbonization strategy and the associated investment allocated to lead decarbonization efforts for Fortescue Metals Group, “make it an ideal partner for Nikola in the potential development of this project,” Nikola stated.
“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 today,” Michael Lohscheller, Nikola president and CEO, added.
FFI CEO Mark Hutchinson said the partnership with Nikola “demonstrates FFI’s commitment to help decarbonize the transportation sector and enable the world to work towards achieving zero emissions.” He also noted incentives in the Inflation Reduction Act which make the U.S. especially attractive for green energy investment, and will in turn “create a pipeline of new jobs” for U.S. workers.