Home / Business and Economy / Fortescue & Queensland Settle Funding Dispute
Fortescue & Queensland Settle Funding Dispute
20 Aug
Summary
- A$66m funding dispute for electrolyser plant settled confidentially.
- Company cancelled Gladstone PEM50 project, shifting strategy.
- State retains value through asset transfers, legal action dropped.
Fortescue and the Queensland Government have reached a confidential settlement concerning A$66m in state funding for the company's now-cancelled electrolyser manufacturing facility in Gladstone, Australia. The facility, which opened in April 2024, was intended to produce proton exchange membrane (PEM) electrolyser stacks for green-hydrogen projects.
Fortescue began reducing operations at Gladstone in May 2025, subsequently cancelling the project and its electrolyser manufacturing operations in July 2025. This decision stemmed from a strategic reassessment, shifting focus towards technologies for lower-cost hydrogen production to support the company's green-iron ambitions. The Queensland Government then pursued the return of its A$66m contribution, with Fortescue disputing the State's claim.
In August 2025, the State issued formal notices seeking full reimbursement. Court proceedings in May 2026 saw Fortescue challenge the State's claim as excessive. The dispute has now concluded with a confidential agreement. As part of the resolution, the Queensland Government will retain value from its investment through the transfer of project land, an electrical substation, and associated infrastructure. Legal action has been discontinued.
