Nikola and Fortescue Future Industries (FFI) have joined forces to explore the co-development of large-scale green hydrogen production facilities in the United States. The partnership will see Nikola, with its significant demand for green hydrogen to decarbonize the transportation sector and other industries, serve as a potential offtaker for any potential projects.
FFI, a global green energy company with a presence in over 25 countries and a subsidiary of top ten ASX company Fortescue Metals Group Ltd (ASX: FMG), brings significant experience and capabilities in hydrogen project development to the partnership, making it an ideal collaborator for Nikola. FFI is at the forefront of the green industrial revolution, working to acquire and develop technology solutions for hard-to-decarbonize industries and building a global portfolio of renewable energy, green hydrogen, and green ammonia projects.
Under the terms of the memorandum of understanding (MOU), Nikola will assess green hydrogen offtake opportunities from other green hydrogen projects undertaken by FFI. The companies will also evaluate the potential for co-developing new green hydrogen production and associated infrastructure projects.
“FFI has an ambitious decarbonization strategy and associated investment allocated to lead the decarbonization efforts for one of the biggest resources companies in the world,” said Nikola Corporation President and CEO, Michael Lohscheller. “This MOU will establish the framework for future collaborations as strategic partners for the potential co-development of meaningful energy transition solutions, with a focus on the Phoenix Hydrogen Hub project being led by Nikola today.”
FFI CEO Mark Hutchinson said: “North America has the potential to become the world’s leading green energy heartland. This new partnership demonstrates FFI’s commitment to help decarbonize the transportation sector and enable the world to work towards achieving zero emissions. The incentives in the Inflation Reduction Act also make the US one of the best places in the world to invest in green energy and create a pipeline of new jobs.”