Under the MoU, the two companies will evaluate the potential co-development of new green hydrogen production and related infrastructure projects.

Nikola will also evaluate green hydrogen offtake opportunities from any other green hydrogen projects being pursued by FFI.

Michael Lohscheller, Nikola Corporation President and CEO, said, “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.”

Nikola’s Phoenix Hydrogen Hub project progressed through the first part review in December (2022), after the Department of Energy Loan Program Office (LPO) invited it to the next stage of its application process.

The hub is expected to be built in phases to scale with the demand created from Nikola’s zero-emission trucks, beginning with 30 tonnes, and expanding up to 150 tonnes of hydrogen per day, with expansion potential as the demand for clean hydrogen grows.

Read more: Nikola Phoenix Hydrogen Hub enters second phase for $1.3bn hydrogen production loan

Mark Hutchinson, FFI CEO, claimed the US is ‘one of the best’ places in the world to invest in green energy, due to the introduction of the Inflation Reduction Act (IRA) and its incentives.

The US Congress passed the IRA in August last year, offering tax credits for low carbon hydrogen production and hydrogen fuel cell electric vehicles, signed into law.

Read more: Win for hydrogen in the US – Inflation Reduction Act to become law

FFI is currently building a portfolio of renewable energy, green hydrogen and green ammonia projects globally.

Last year, it signed an MoU to conduct studies with a view to developing green hydrogen production in Egypt, including a 9.2GW capacity project.

Read more: Fortescue Future Industries in talks for 9.2GW green hydrogen project in Egypt