Fortescue gets in line for US federal funding

PERTH (miningweekly.com) – Iron-ore and green energy developer Fortescue could have access to US funding in the pursuit of its green hydrogen aspirations.

The company has been selected to begin award negotiations as part of the US Department of Energy Office of Clean Energy Demonstration’s (OCED’s) development of the Pacific Northwest Hydrogen Hub, which in total is estimated to receive up to $1-billion in Bipartisan Infrastructure Law funding.

The selection also enables Fortescue to work in partnership to establish the Pacific Northwest Hydrogen Hub, which includes Fortescue’s proposed green hydrogen production facility in Centralia.

The OCED funding would support Fortescue’s participation in the Hydrogen Hub through the advancement of planning, detailed design, environmental permitting, and procurement of long-lead equipment.

“There is no place better in the world to be investing in renewable and green energy projects right now than the US,” Fortescue executive chairperson Dr Andrew Forrest, said.

“Federal funding like this, alongside other incentives in the Inflation Reduction Act, go a long way to helping reduce risk and accelerate the wide-spread production of green hydrogen. In turn, this will catalise substantial private sector investment, creating new good paying jobs and economic prosperity for Americans, particularly those in economically vulnerable communities in the Pacific Northwest.”

Fortescue’s project in Centralia is planned to be sited on a remediated coal mine adjacent to Washington’s last coal-fired power plant, scheduled to retire permanently in 2025. The proposed facility will produce green hydrogen at scale for use locally in the Pacific Northwest in heavy-duty transportation, grid reliability, maritime, industrial processes, and other hard-to-abate sectors.

In addition to the regional clean energy benefits, the proposed project will create high-paying jobs for the local workforce and a new economic engine in Lewis County for the next generation and beyond.

The project is currently in the design stage, with full permitting to follow. Project construction is anticipated to start in 2026 and continue into 2028, subject to a final investment decision by the Fortescue board.