Fortescue is pouring big money into hydrogen electrolysers. 

The Australian firm says it is the “lead investor” in a $602 million fundraising round conducted by Electric Hydrogen, a North American company. 

Although Fortescue did not specify the exact amount of their investment, reports say it is estimated to be close to $158 million. 

This investment aligns with Fortescue's plan to become a major electrolyser manufacturer, a crucial component in hydrogen production. 

Electric Hydrogen specialises in the creation of cutting-edge electrolysers used to split water into hydrogen and oxygen.

Fortescue's investment in Electric Hydrogen comes alongside its efforts to address the surging demand for electrolysers worldwide. 

Due to substantial order backlogs, customers have faced delivery delays of up to two years. 

To address this demand, Fortescue has established a factory in Queensland, near Gladstone, which is set to produce its first batch of electrolysers by the end of the year. These electrolysers will primarily support Fortescue's green hydrogen projects.

However, with the Gladstone factory's limited capacity, Fortescue plans to procure additional electrolysers from companies like Plug Power and now, Electric Hydrogen. 

Mark Hutchinson, Fortescue's energy chief executive, says Electric Hydrogen's ability to produce electrolysers at a “transformational” low cost is a key factor in securing Fortescue's green energy supply chain.

Electric Hydrogen, founded just three years ago with offices in California and Massachusetts, is set to provide Fortescue with sufficient electrolysers to generate 1 gigawatt of hydrogen.