- Fortescue Metals Group (ASX:FMG) is set to rapidly expand its presence in the United States, buoyed by the country’s Inflation Reduction Act
- Fortescue is establishing an Advanced Manufacturing Centre in Michigan, investing $35 million
- The company will also form a new green energy investment accelerator platform, Fortescue Capital, with headquarters in New York City
- Meanwhile, FMG’s Pheonix Hydrogen Hub is on track for a FID this year
- FMG last traded at $25.27
Fortescue Metals Group (ASX:FMG) is set to rapidly expand its presence in the United States, buoyed by the country’s Inflation Reduction Act (IRA).
Founder and Executive Chairman, Dr Andrew “Twiggy” Forrest AO, announced these plans at APEC overnight, emphasising the potential to generate clean energy opportunities for both the USA and Asia Pacific.
“The IRA makes the United States the most attractive place in the world for green energy and green manufacturing projects,” he said.
Advanced Manufacturing Centre
Fortescue is establishing an Advanced Manufacturing Centre in the United States’ upper midwest, Michigan, investing $35 million.
“Michigan and the United States are extremely attractive places to manufacture, given the skilled workforce, existing supply chain and incentives from state and federal governments, including the Inflation Reduction Act,” Fortescue Energy CEO Mark Hutchinson said.
The facility is expected to generate up to 600 new jobs in its initial phase and will benefit from the IRA tax credits for battery modules, amounting to up to US$10 per kWh.
The centre is envisioned to become a major hub for FMG’s production of automotive and heavy industry batteries, as well as hydrogen generators, fast chargers, and electrolysers.
“Fortescue’s Advanced Manufacturing Center will breathe fresh life into the birthplace of the automotive industry,” Dr Forrest added.
Fortescue also announced the formation of a new green energy investment accelerator platform, Fortescue Capital, with headquarters in New York City.
This venture will be spearheaded by Robert Tichio as CEO and Managing Partner, with the aim of driving new green energy projects in the US and around the world.
Fortescue Capital is designed to “broaden its base of financial partners across its captive pipeline of green hydrogen and planned decarbonisation investments,” according to today’s press release.
“Fortescue has made public commitments to invest in a first-generation infrastructure investment program as it marches towards final investment decisions across its pipeline of green hydrogen, ammonia, and fertilizer projects in North and South America, Europe, Africa and Australia,” Mr Tichio said.
“It has communicated to the market an intention and desire to bring additional investors to these captive projects, and Fortescue Capital is an integral tool of engagement as we embark on that mission.”
Fortescue’s US projects
Fortescue’s Pheonix Hydrogen Hub (PHH) is on track for a final investment decision this year.
Once approved, it is expected to generate up to 300 jobs during construction and an additional 40 once fully operational.
If all goes according to plan, FMG anticipates the first production of green hydrogen from PHH to take place in the middle of this decade.
Furthermore, FMG’s Centralia project has received a significant boost, having been selected by the US Department of Energy for funding as part of the Pacific Northwest Hydrogen Hub.
The project, located in Washington, is currently in the design phase, with construction slated for 2026 and expected to span until 2028, subject to a final investment decision.
“The IRA has changed the US from a laggard to a world leader in clean energy, creating jobs at home, fighting climate change and spurring development amongst trading partners,” Dr Forrest said.
FMG last traded at $25.27.