Fortescue to Establish clean energy Manufacturing Plant in the US
Australian mining and green energy major Fortescue has revealed plans to establish a new clean energy technology manufacturing plant in the United States as it looks to take advantage of America’s $565 billion (USD 369 billion) Inflation Reduction Act.
Investing in clean energy Manufacturing
Fortescue has announced it will invest almost $54 million (USD 35 million) to kickstart a major manufacturing facility in the United States (US) that is expected to serve as a hub for the production of automotive and heavy industry batteries, hydrogen generators, electric vehicle fast chargers and electrolysers.
The manufacturing facility will be developed in the state of Michigan and is part of Fortescue’s plan to expand its US presence, driven by the Inflation Reduction Act (IRA).
The Inflation Reduction Act
The IRA aims to ramp up onshore production of renewable energy, electrification, and the development of clean energy industries like green hydrogen. It offers subsidies, grants, and tax breaks to businesses establishing clean energy projects in the US.
Fortescue’s new manufacturing center is expected to benefit directly from IRA tax credits for battery modules, providing approximately $15 (USD 10) per kWh.
Fortescue’s Vision for clean energy
Fortescue Executive Chairman and founder, Andrew Forrest, believes that the IRA has transformed the US into a global leader in clean energy. He emphasizes that countries that incentivize green energy establish a strong “economic engine” within their economies.
Forrest states, “The IRA makes the United States the most attractive place in the world for green energy and green manufacturing projects. Fortescue is putting the United States at the forefront of our global strategy, with the incentives on offer, a win for both the US and the wider Asia-Pacific region.”
Michigan manufacturing facility
The Michigan facility, projected to employ up to 600 people in its initial phase, will serve as a major hub for Fortescue’s production of batteries, fast chargers, hydrogen generators, and electrolysers.
Fortescue Energy Chief Executive Officer Mark Hutchinson highlights the advantages of manufacturing in Michigan and the US, including the skilled workforce, existing supply chain, and incentives from state and federal governments, such as the Inflation Reduction Act.
Other clean energy Projects
Fortescue has planned two additional clean energy projects in the US.
Phoenix Hydrogen Hub
Fortescue aims to make a final investment decision this year for the Phoenix Hydrogen Hub in Arizona. The project will include an 80 MW electrolyser and liquefaction facility capable of producing up to 12,000 tonnes of liquified green hydrogen annually.
Centralia Project
Fortescue is also planning to construct a large-scale green hydrogen production plant in the state of Washington. The Centralia project, selected as part of the Pacific Northwest Hydrogen Hub, will receive funding from the US Department of Energy. The project is currently in the design stage, awaiting a final investment decision by the Fortescue board.
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Read More of this Story at www.pv-magazine-australia.com – 2023-11-20 02:21:44
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