Queensland sues Twiggy Forrest to recoup $66m grant
The Queensland government has launched High Court proceedings against one of Australia’s largest companies to recoup nearly $66 million it invested in a faulty green hydrogen plant in Gladstone.
The former Labor government awarded Andrew Forrest’s Fortescue a $65.97 million grant to help build a green hydrogen electrolyser manufacturing plant in the Central Queensland city in 2021.
Fortescue’s green hydrogen ambitions took a hit in 2025 when US President Donald Trump cut tax breaks for clean energy investments, causing the Australian company to abandon plans for a new facility in Arizona.
Gus Pichot, Fortescue’s head of growth and energy, said at the time: “A lack of uncertainty and a retreat on green ambition has stalled emerging green energy markets and made it difficult for previously feasible projects to progress.”
However, documents published in this imprint under freedom of information laws revealed that the Gladstone project was in trouble long before the US policy change. Despite state and federal commitments totaling $137 million, the plant tested hydrogen electrolyzers for only seven weeks before being shut down; This cost taxpayers an estimated $14 million for each week of testing.
In a claim lodged in the Queensland Supreme Court on March 17, Deputy Premier Jarrod Bleijie – as state development minister – sought to force Fortescue to return Queensland’s $65.97 million contribution to the state.
Last August Bleijie described the Gladstone factory as a “vanity project” and condemned the former Labor government’s support for the project.
“The state Labor government has approved $92.5 million and $65.97 in taxpayer funding for this project. [million] Bleijie told parliament last year that Fortescue had already been paid under the former Labor government’s terrible deal.
“On behalf of Queensland taxpayers, I have instructed my department to inform Fortescue that the Crisafulli government will issue a notice of compliance, issue a notice of default and seek repayment of the full $65.97 million towards this now stalled project.
“This is good value for taxpayers’ money and we will try to get it back.”
On Thursday, a spokesman for Bleijie said the process, which started with negotiations with Fortescue, had moved to court.
“We attempted to negotiate in good faith with Fortescue for several months to return the funds to Queenslanders, but were unable to reach an agreement and have therefore commenced legal proceedings to resolve this matter,” he said.
In response to the court case, a Fortescue spokesman said the company had invested $228 million in the site, reflecting a “significant commitment”.
“Fortescue is committed to securing its investment and ensuring the Queensland government’s $66 million contribution is put to good use in the future,” he said.
Earlier this year, a spokesman for the Federal Ministry for Industry confirmed that Fortescue had repaid $20 million of the $33 million distributed from the original federal government grant in November.
Federal Minister for Industry Tim Ayres was asked for comment.
– with Eryk Bagshaw and Nick Toscano
