Fortescue Metals Group Ltd has announced a significant milestone, with the Board approving a Final Investment Decision (FID) on the Phoenix Hydrogen Hub, USA, the Gladstone PEM50 Project in Queensland, Australia and a Green Iron Trial Commercial Plant in Western Australia (WA).
Other projects selected to be fast tracked by the Board are Pecem in Brazil, Project Chui in Kenya and Holmaneset in Norway, representing a geographical and technological diversity to establish a global glide path for Fortescue Energy and its green hydrogen and adjacent technologies and industries to be firmly established. The estimated total investment in the three approved projects is approximately US$750 million over the next three years.
These are three of the first green hydrogen deals ever to be progressed to FID in the United States and Australia, with a pipeline of projects to follow which will significantly scale up Fortescue’s global green energy production, with lessons learnt from these first three projects.
The Gibson Island Green Hydrogen and Ammonia Project in Queensland is requiring further work as Australia struggles to shed its petrostate status and still suffers structurally high green electricity costs.
Final Investment Decisions
1. Phoenix Hydrogen Hub. An 80MW electrolyser and liquefaction facility in Arizona, USA with production capacity of up to 11,000 tonnes per annum of liquid green hydrogen. Total investment is approximately US$550 million, with first production in 2026. With its commercial attraction confirmed, an attractive phase two development exists.
2. Gladstone PEM50 Project. A 50MW green hydrogen project utilising Fortescue’s own electrolyser technology. Total investment is up to US$150 million, with first production in 2025.
3. Christmas Creek Green Iron Trial Commercial Plant. Utilising existing green hydrogen and green electricity from solar generation, hematite and magnetite ore production capacity and existing infrastructure and technical capacity, an investment of up US$50 million has been approved to construct a Green Iron Trial Commercial Plant at Christmas Creek. Annual production is more than 1,500 tonnes, with first production in 2025.
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