Fortescue has been chosen to begin award talks as part of the U.S. Department of Energy Office of Clean Energy Demonstrations (OCED) development of the Pacific Northwest Hydrogen Hub, which is expected to receive up to $1 billion in funding under the Bipartisan Infrastructure Law.
The selection also allows Fortescue to collaborate on establishing the Pacific Northwest Hydrogen Hub, including Fortescue’s proposed green hydrogen production facility in Centralia, WA.
The OCED financing would support Fortescue’s participation in the Hydrogen Hub by advancing planning, detailed design, environmental permitting, and long-lead equipment procurement.
Fortescue Executive Chairman Dr Andrew Forrest said the United States is currently the best location to invest globally in renewable and green energy projects.
“Federal funding like this, alongside other incentives in the Inflation Reduction Act, go a long way to helping reduce risk and accelerate the wide-spread production of green hydrogen. In turn this will catalize substantial private sector investment, creating new good paying jobs and economic prosperity for Americans, particularly those in economically vulnerable communities in the Pacific Northwest,” Dr Forrest stated.
Fortescue North America CEO Andrew Vesey commented, “We look forward to continuing our participation in the Pacific Northwest Hydrogen Association as we work to accelerate the clean energy transition.”
The Fortescue project in Centralia, WA, is set to be built on a remediated coal mine adjacent to Washington’s last coal-fired power plant, which is set to close permanently in 2025. The proposed project will create green hydrogen on a large scale for use in heavy-duty transportation, grid reliability, maritime, industrial processes, and other difficult-to-abate sectors in the Pacific Northwest.
In addition to the benefits of regional clean energy, the proposed project, strengthened by the announcement, will provide high-paying employment for the local workforce and a new economic engine in Lewis County for the next generation and beyond.
The project is now in the design phase, with final approvals to follow. Construction on the project is expected to begin in 2026 and continue through 2028, subject to a Final Investment decision by the Fortescue board.
