In a transformative move towards sustainable energy solutions, Fortescue Future Industries (FFI), a global green energy and metals company, is set to acquire Nikola Corporation’s Phoenix Hydrogen Hub (PHH) project.
This strategic collaboration between two industry leaders marks a significant milestone in the journey towards a zero-emission future, with the PHH project playing a crucial role in driving the adoption of green hydrogen in the transportation sector.
Nikola Corporation, a renowned leader in zero-emissions transportation and energy supply solutions, has long been committed to revolutionizing the commercial vehicle industry by advancing the use of hydrogen fuel cell technology. FFI, on the other hand, is dedicated to developing large-scale green energy production facilities to move beyond fossil fuels and foster a greener future. This shared vision has led to FFI’s decision to acquire the PHH project and provide the necessary capital and resources for its complete development.
Situated near Phoenix, in the city of Buckeye, Arizona, the PHH project is a fast-to-market, green hydrogen initiative designed to scale alongside increasing demand. The project aims to achieve its first hydrogen production milestone by the mid-2020s, contributing significantly to the region’s decarbonization efforts.
Nikola’s President and CEO, Michael Lohscheller, emphasizes that the acquisition by FFI strengthens one of the United States’ pioneering hydrogen hubs, facilitating the acceleration of green hydrogen adoption for zero-emission vehicles. This strategic collaboration aligns perfectly with Nikola’s capital-efficient energy strategy, fostering an ecosystem of partners interested in the hydrogen energy revolution.
As part of the Memorandum of Understanding signed in January 2023 between FFI and Nikola, the PHH project is the first announced endeavor to co-develop large-scale U.S. green hydrogen production facilities. FFI’s CEO, Mark Hutchinson, highlights the company’s commitment to transforming North America into a leading global green energy producer. The project is not only anticipated to create green industrial jobs but also significantly reduce emissions once production commences.
Apart from the PHH project acquisition, FFI and Nikola are actively working towards a hydrogen supply agreement to support the growing demand for Nikola’s hydrogen fuel cell electric vehicles. The deployment of hydrogen as a zero-emission fuel in the transportation sector is expected to benefit from federal incentives like the hydrogen tax credit in the Inflation Reduction Act and state-level incentives such as the Low Carbon Fuel Standard in California.
Buckeye Mayor Eric Osborn highlights the city’s commitment to attracting clean energy businesses, particularly near the Sustainable Valley area. The PHH project’s establishment in Buckeye strengthens the region’s green portfolio and sets the stage for similar transformative technologies to expand and flourish.
