Fortescue Metals Group Ltd (ASX: FMG) shares are heading lower with the market on Friday.
At the time of writing, the iron ore giant's shares are down 0.5% to $22.48.
Not even some news about the company's green ambitions has been able to stop its shares from sliding.
What's the news?
Fortescue has announced that its Fortescue Future Industries (FFI) business has made its first major move in the United States.
According to the release, following the passage of the Inflation Reduction Act, FFI is investing US$24 million to acquire a 100% interest in Phoenix Hydrogen Hub (PHH).
The release notes that PHH is developing a proposed green hydrogen project located near Phoenix, Arizona.
Phase One of the PHH project is planned to be an 80MW electrolyser and liquefaction facility, which will be capable of producing up to 12,000 tonnes of liquified green hydrogen annually. This has the potential to displace the equivalent of 10 million gallons of diesel consumption per year.
But it may not stop there. Fortescue notes that the PHH project has further capacity to scale up production to help meet future demand.
Two becomes one
In addition, the company has revealed that Fortescue Metals Group and FFI will come together as one brand "Fortescue" to represent being a unified global metals and green energy company.
Management notes that the move, which comes after 20 years with the FMG brand, was confirmed to staff to coincide with Fortescue's 20-year anniversary.
FFI CEO, Mark Hutchinson, commented:
FFI is actively expanding its U.S. presence and strengthening its position as a leading global developer of green energy production and technology. We are committed to helping turn North America into a world-leading global green energy producer.
This is an exciting opportunity to work towards a fast-moving project that will lead the way in the U.S., creating new green industrial jobs for Americans, while also helping to reduce emissions once production begins. The U.S. is now one of the best places in the world to do this, with the Inflation Reduction Act making it an ideal place to invest in green energy.
Fortescue shares are up 28% over the last 12 months.
