Fortescue Future Industries (FFI) has consented to acquire Nikola's Phoenix Hydrogen Hub project.
The original equipment manufacturer reports that the new owner will provide the necessary capital and resources to completely develop the project, which will support Nikola's hydrogen-powered Class 8 trucks.
According to the company, the transaction is consistent with its capital-efficient energy strategy, which involves collaborating with partners interested in advancing the hydrogen energy ecosystem.
The Phoenix Hydrogen Hub is a green hydrogen initiative near Phoenix, Arizona, which is scheduled to be constructed in phases as demand grows. The facility is expected to start producing hydrogen by the middle of this decade.
"Nikola's top priority is to see more zero-emission trucks on the road, and this acquisition by FFI will greatly strengthen one of the country's first and most important hydrogen hubs," said Michael Lohscheller, president and CEO of Nikola Corporation. "The acquisition of this project by FFI represents a significant milestone in our efforts to build a crucial local infrastructure to accelerate the use of hydrogen to power zero-emission vehicles."
Nikola and FFI signed an MOU in January to collaborate on the development of large-scale renewable hydrogen production facilities.
"FFI is actively expanding its U.S. presence and bolstering its position as the world's foremost developer of green energy production and technology. Mark Hutchinson, chief executive officer of FFI, stated, "We are committed to assisting North America in becoming a world-leading producer of green energy." This is an exciting opportunity to work on a fast-moving project that will be a leader in the United States, creating new green industrial jobs for Americans and assisting to reduce emissions once production begins.
Currently, the PHH project is in the final stages of its permit application process, and the procurement of long-lead equipment is ongoing.
