Paul Rodden • Season: 2024 • Episode: 312
Listen Now:
>Direct Link To The Hydrogen Podcast MP3<
Listen On Your Favorite App:
Welcome to The Hydrogen Podcast!
In episode 312, Fortescue moves forward with their new Arizona hydrogen plant with 11,000 tons of liquid hydrogen in their future. And Siemens joins forces with Metacon on large scale electrolytic hydrogen project development. I’ll go over this news and give my thoughts on today’s hydrogen podcast.
Thank you for listening and I hope you enjoy the podcast. Please feel free to email me at info@thehydrogenpodcast.com with any questions. Also, if you wouldn’t mind subscribing to my podcast using your preferred platform… I would greatly appreciate it.
Respectfully,
Paul Rodden
VISIT THE HYDROGEN PODCAST WEBSITE
https://thehydrogenpodcast.com
CHECK OUT OUR BLOG
https://thehydrogenpodcast.com/blog/
WANT TO SPONSOR THE PODCAST?
Send us an email to: info@thehydrogenpodcast.com
NEW TO HYDROGEN AND NEED A QUICK INTRODUCTION?
Start Here: The 6 Main Colors of Hydrogen
Transcript:
Fortescue moves forward with their new Arizona hydrogen plant with 11,000 tons of liquid hydrogen in their future. And Siemens joins forces with Metacon on large scale electrolytic hydrogen project development. I’ll go over this news and give my thoughts on today’s hydrogen podcast.
So the big questions in the energy industry today are, how is hydrogen the primary driving force behind the evolution of energy? Where is capital being deployed for hydrogen projects globally? And where are the best investment opportunities for early adopters who recognize the importance of hydrogen? I will address the critical issues and give you the information you need to deploy capital. Those are the questions that will unlock the potential of hydrogen and this podcast will give you the answers. My name is Paul Rodden, and welcome to the hydrogen podcast.
In a press release on May 2, Fortescue officially launches its first U.S. green hydrogen production facility, Arizona Hydrogen, with soil turn ceremony in Buckeye, Arizona. On May 2, ortescue marked a new phase in the development of the company’s $550 million venture into green hydrogen production in the United States, the first of Fortescue’s planned green energy investments in North America with a soil turn ceremony and renaming of our green hydrogen facility in Buckeye, Arizona to Arizona Hydrogen.
At the 158-acre facility site, Fortescue Executive Chair and Founder Dr. Andrew Forrest AO praised the Biden Administration’s commitment to the energy transition, but cautioned there is more work to be done. saying The US has made serious strides in attracting global investment in green hydrogen and decarbonization projects, like Fortescue’s solar and wind-powered Arizona Hydrogen facility. Fortescue is unashamedly a first-mover in this space, the world needs us to move quickly. He also says But, we need to be encouraged to that, not punished. There are rules right now under consideration with the Biden Administration that would make already announced projects like this one dramatically more expensive and smaller, resulting in fewer economic opportunities and slower progress on decarbonization.
I support the Biden Administration’s goal to produce hydrogen in a way that prioritizes sustainability, however 45V, in its current form, is a straitjacket on the industry and works against the Biden Administration’s own climate goals. According to new economic data from NDP Analytics, during the two-year construction phase, Arizona Hydrogen has the potential to create up to 2,244 direct, indirect, and induced jobs that could earn $124.2 million in wages. The facility could add $187.8 million to Arizona’s GDP and generate a potential $31.7 million in income and sales taxes for state and local governments. During the operation phase, Arizona Hydrogen is expected to employ 40 people at the facility itself, as part of a potential 431 direct, indirect, and induced jobs that could earn $29.3 million in wages. Arizona Hydrogen could also add $59.2 million to Arizona’s GDP, and generate $9.1 million income and sales taxes for state and local governments annually.
Arizona Hydrogen is slated to produce up to 11,000 tons of liquid green hydrogen annually and is strategically positioned to significantly contribute to the decarbonization of the heavy-duty on-road transportation sector. The southwest market consumes approximately 5 billion gallons of diesel annually in heavy-duty transport, making PHH a vital player for reducing emissions in the mobility sector. And a quote from Stephen Roe Lewis, Governor of the Gila River Indian Community, In recognizing and honoring the traditional lands of the Akimel O’otham and Pee Posh people, we have a profound connection and shared responsibility as stewards of the earth. Companies like Fortescue, are helping to pave the way for a more sustainable and equitable future for our generations to come.
And a quote from Buckeye Mayor Eric Osborn Buckeye is happy to welcome Arizona hydrogen to the sustainable Valley. Saying Fortescue’s investment in our community helps Buckeye, and the entire state of Arizona, continue to grow efficiently and sustainably for generations to come. Okay, so a huge announcement from Fortescue as they move forward with this gargantuan project in Arizona. 11,000 tons of green hydrogen a year is huge. But I have a concern. And I’m sure you all know what it is. They’re calling this project green. So I can assume that means electrolytic hydrogen from renewables. Now, getting solar and wind power in Arizona is relatively easy, but water is scarce. Now, I would think that Fortescue has resolved that issue, but in an area where water is the
most precious commodity. I hope that wherever they’re sourcing the water doesn’t impact local communities or downstream recipients. The other point to bring up is Dr. Andrew Forrest comments on the 45 V and the impact it’s having on project development. The delay in releasing the tax guidance has stalled in nearly every project and in turn hydrogen development in the US. It’s also important to note that this project is not associated with any of the seven hydrogen hubs. And I’m noticing that the projects that are moving forward are generally outside of the hub program, could that be due to private capital, preferring to stay away from federal dollars and the hurdles associated with getting that funding?
It’s highly likely that’s the case. But because Fortescue has pushed forward in the face of that uncertainty, I say congratulations, and well done. Obviously, there’s still much more work to do. But they’ve taken the right steps in building the hydrogen economy here in the US, it’s leadership like that, that will push the market forward. Next, in a press release on May 7, Metacon, and Siemens enter into a collaboration for the manufacturer of systems for green hydrogen production. At the beginning of the year, Metacon announced that the company has been granted exclusive rights for the manufacture of complete electrolysis plants based on the partner PERIC’s world-leading technology for pressurized alkaline electrolysis modules (stacks).
One of the key components of PERIC’s alkaline technology is efficient and proven 5 MW modules with over 10 years of operating data. Metacon also has access to the 10 MW module that PERIC recently launched and which today, in terms of power and production, is one of the world’s largest. The rights apply to most European countries and mean that Metacon can start from a proven technology that has been developed and refined for over 60 years, and make the adaptations required to match the requirements for safety and automation found in European standards for hydrogen production. With the exclusive right, Metacon now aims to become one of the market leaders in Europe for this type of large-scale hydrogen plants.
The joint MoU means that Siemens will become a technology partner to Metacon to contribute with its solid experience in delivering products, solutions and services in automation, power distribution, electrification, instrumentation, building technology and drives. Siemens will also be able to contribute with its wide range of digital services and software for optimisation, standardisation and simulation during both the manufacturing and operational phases of hydrogen plants. In a quote from Mikael Kraft, Head of Factory Automation and Sales at Siemens Digital Industries, Hydrogen is an important piece of the puzzle in the industrial, energy and transport sectors to become CO2 neutral, and is the focus of Siemens’ global investment in Power-to-X.
The partnership with Metacon marks a milestone in our quest to create a more sustainable world by, among other things, developing innovative solutions for the energy sector. And in a quote from Christer Wikner, CEO and President, Metacon. Metacon has big plans for the investment in the manufacture and sale of large-scale electrolysis plants to, among others, the basic industry, the wind power sector and the transport sector in Europe. I have a hard time imagining a better partner on such a journey than Siemens. With its world-leading portfolio of technology, expertise and long-standing experience of similar projects, this partnership gives us the opportunity to both accelerate and optimize central parts of our unique Gigafactory project. Okay, so a great collaboration between Metacon, which is a manufacturer of electrolytic hydrogen energy systems, and Siemens, a global juggernaut that generated nearly 78 billion euros in revenue last year.
And this partnership plays into what I’ve been talking about recently regarding support industries, joining with technology developers to push projects forward. Now, Siemens is one of the world’s best when it comes to working as a technology partner, and has the experience in automation, instrumentation, power distribution, along with the other services that they’ll be offering to Metacon. And with large scale electrolytic hydrogen plants getting developed around the world right now. If Metacon wants to lead the market collaborations like this will certainly help.
All right, that’s it for me, everyone. If you have a second, I would really appreciate it. If you could leave a good review on whatever platform it is that you listen to Apple podcasts, Spotify, Google, YouTube, whatever it is, that would be a tremendous help to the show. And as always, if you ever have any feedback, you’re welcome to email me directly at info@thehydrogenpodcast.com. So until next time, keep your eyes up and honor one another.
Hey, this is Paul. I hope you liked this podcast. If you did and want to hear more. I’d appreciate it if you would either subscribe to this channel on YouTube, or connect with your favorite platform through my website at www.thehydrogenpodcast.com. Thanks for listening. I very much appreciate it. Have a great day.
