Fortescue and the Queensland Government have reached a confidential settlement over A$66m (£35m) in state funding provided for the company’s electrolyser manufacturing facility in Gladstone, Australia.
Fortescue officially opened the 15,000-square-metre facility in April 2024, with capacity to manufacture more than 2GW of proton exchange membrane (PEM) electrolyser stacks a year
The equipment was intended to supply green-hydrogen projects. Queensland provided land and enabling infrastructure for the project, while the Australian Government separately contributed A$44m through the Modern Manufacturing Initiative, a grant programme established to strengthen domestic manufacturing capability. Fortescue began winding down activity at Gladstone in May 2025, including job cuts at the site, as it reassessed its green-hydrogen strategy.
In July, the company formally cancelled the Gladstone PEM50 hydrogen project and the electrolyser manufacturing facility, citing a “strategic shift away from electrolysers” towards technologies aimed at providing lower-cost hydrogen for green industry in Australia. Fortescue said the change in direction was intended to support its green-iron ambitions. The Queensland Government subsequently sought the return of its A$66m funding contribution, while Fortescue said it would return funds where required under the grant agreement.