Australia’s Fortescue said Thursday it will not proceed with its $550 million green hydrogen project in Arizona, citing changes in U.S. policy under the Trump administration. The decision came about five months after the company said it was reconsidering its timeline for the project amid greater policy uncertainty.
The 80-MW Arizona Hydrogen project (see rendering below) was expected to produce up to 11,000 metric tons/year of liquid green hydrogen aimed at the heavy-duty, on-road transportation sector. The project reached a final investment decision (FID) in 2023, construction began in May 2024 and production was expected to get underway in 2026.
“Regarding the Arizona Hydrogen Project, as you know, a shift in policy priorities away from green energy has changed the situation in the U.S.,” Gus Pichot, the company’s CEO for Growth and Energy, said during the company’s earnings call. “The lack of certainty and a step back in green ambition has stopped the emerging green energy markets, making it hard for previously feasible projects to proceed.”
Fortescue said it was also cancelling its 50-MW Gladstone PEM50 project in Australia, citing a company shift away from electrolyzers to focus on advancing technologies to provide low-cost hydrogen for green industries there. The project cancellations are expected to result in a $150 million write-down. Both sites could be repurposed for other projects.
