Labor Minister Tim Ayres calls on Fortescue to repay $60m of taxpayer funds for failed green hydrogen project in Gladstone
The Andrew Forrest-owned energy and mining giant on Thursday revealed it was scrapping green hydrogen projects in Queensland's Gladstone and the United States' Arizona.
The Queensland plant has received about $60m in federal and Queensland government support and was opened 12 months before Fortescue canned the operation.
While the company blamed the collapse of the Arizona facility on the shift in policy from the Trump administration, the Albanese government has earmarked billions of taxpayer dollars into green hydrogen in Australia.
The recent shift is a blow to Labor's net-zero plans, which include a Hydrogen Production Tax Incentive as part of its Future Made in Australia Act.
More than $6.5 billion will go toward the scheme, which provides $2 per kilogram of renewable hydrogen produced between 2027-28 and 2039-40.
A spokesperson for Industry and Innovation Minister Tim Ayres said the government was hoping Fortescue would return the taxpayer funds it provided to fuel green hydrogen production in Australia.
Labor has called on Fortescue to repay the millions of dollars it was given for a now-failed green hydrogen project. Picture: Getty Images
A spokesperson for Mr Ayres said Labor would like Fortescue to repay the public funds. Picture: NCA NewsWire / Martin Ollman
'The decision not to proceed the PEM50 Hydrogen plant in Gladstone is a commercial matter for Fortescue,' the spokesperson said.
'However, if Fortescue does not proceed with the delivery of the MMI-funded Gladstone Electrolyser facility project it would be reasonable for the government to seek reimbursement for where the grant agreement hasn't been fulfilled.'
Fortescue has not committed to ruling out repaying the taxpayer funds as it continues discussions with both the Queensland and federal governments.
'We are in active discussions with both governments on the future use of the land and the assets that have been invested in. As these are confidential discussions, it would be inappropriate to disclose details,' a spokesman said.
The failure of the two projects will blow a US$150m ($227m) hole in the energy and mining giant's financial results.
On the US project's failure, Fortescue chief executive of growth and energy Gus Pichot told analysts the shift away from green energy under US President Donald Trump hurt the project's viability.
'A shift in policy priorities away from green energy has changed the situation in the US,' Mr Pichot said.
'The lack of certainty and a step back in green ambition has stopped the emerging green energy markets, making it hard for previously feasible projects to proceed.
'As a result, we cannot proceed with our investments as they stand, and will explore future opportunities for our site in Arizona.'
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