- Andrew Forrest, founder of Fortescue, accuses U.S. legislative changes of jeopardizing a significant green hydrogen project in Arizona, criticizing the influence of the fossil fuel lobby.
- Forrest expressed his disillusionment during a soil turning ceremony in Buckeye, Arizona, emphasizing that recent legislative amendments could undermine the U.S.’s leadership in green energy.
During a recent soil turning ceremony in Buckeye, Arizona, Fortescue Metals Group founder Andrew Forrest voiced his frustration with the United States, claiming it is reneging on its green energy promises. Forrest highlighted that legislative revisions to the Biden administration’s Inflation Reduction Act could potentially derail a $550 million (approximately $836 million) hydrogen project. He attributed these changes to the influence of lobbyists for the oil and gas industries.
Dr. Forrest criticized the U.S. for what he sees as a betrayal, as he had been led to believe the country would become a world leader in green energy, overtaking China in decarbonization efforts. However, he pointed out that the draft regulations under the Treasury’s 45V detail, which he decried as a “really stupid name,” are designed to stifle the development of what he calls “the savior in energy for humanity and every organic life on Earth,” referring to green electrons and green hydrogen.
Expressing his disappointment, Forrest told attendees, including politicians and traditional owners, that the U.S. is compromised by “faceless people” with lobbying funds who are undermining environmental progress under the guise of environmentalism but are actually funded by the fossil fuel sector.
The controversy centers around a specific requirement in the new legislation that mandates companies must align each hour of hydrogen production with an hour of renewable power consumption to qualify for tax credits. This condition aims to prevent subsidies from supporting hydrogen production powered by fossil fuels during periods when renewable resources like solar and wind are not available.
Reflecting his commitment to the project and perhaps to sidestep the contentious issue, Forrest has rebranded the Phoenix Hydrogen Hub to Arizona Hydrogen. The project, located approximately 50 kilometers from Phoenix in Buckeye, symbolizes a pivotal move in the transition towards sustainable energy solutions.
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