Queensland settles $66m lawsuit with Fortescue over failed hydrogen project

The Queensland government has settled its $66 million lawsuit with mining giant Fortescue, hoping to claw back public money spent on a failed hydrogen project in central Queensland.

Fortescue, owned by iron ore billionaire Andrew Forrest, had argued the company had fulfilled its obligations in relation to a green hydrogen electrolyser manufacturing facility in Gladstone, which had received $137 million in state and federal funding.

But documents sought by this masthead through Right to Information laws showed the plant only tested hydrogen electrolyser for seven weeks before shutting up shop in May 2025.

Deputy Premier Jarrod Bleijie, who launched the court action, had previously called the project a “vanity project” and a “terrible deal”.

In a joint press release with Fortescue put out on Thursday, Bleijie said the two parties had come to a confidential agreement that would put an end to court proceedings.

“The settlement ensures that value from the state’s $66 million investment has been retained in Queensland for Queensland taxpayers, including through the transfer of the project land, electrical substation and associated common-user infrastructure, together with other agreed arrangements,” the release said.

“This settlement recognises the assets and infrastructure remaining in Queensland and allows both parties to move forward.”

In court documents reported on by this masthead, the government planned to argue it had lost out on a potential $1.7 billion hydrogen industry in the region due to the project falling over, and was demanding back the $65.97 million granted by the former government in 2021.

According to court documents, the facility would have operated until 2032 under that deal, enabling Queensland to potentially become a global leader.

According to sources from the then-government, Fortescue promised the facility would support 48 manufacturing jobs, and could lead to the company further investing in the region.

Documents lodged by Fortescue indicated it would have argued the government’s hydrogen plan only ran through 2024, in line with the state election the LNP went on to win.

Shortly after the election the government removed the plan from its website, and later withdrew support from the Central Queensland Hydrogen Hub, a $12.4 billion green hydrogen project led by the state-owned Stanwell Corporation.

The government’s new energy road map, launched in September 2025, also made no mention of hydrogen, all signs the government was not committed to the technology, Fortescue would have argued.