Fortescue Challenges Queensland's $66 Million Funding Clawback for Hydrogen Project
Fortescue claims paying back $66m for failed hydrogen project ‘overreach’
Image: The Sydney Morning Herald
Fortescue, a mining company led by billionaire Andrew Forrest, is contesting the Queensland government's attempt to reclaim nearly $66 million for a failed green hydrogen project. The company argues that this move could deter future investments in the state, as the funding had been appropriately spent according to previous policies.
- 01Fortescue is defending itself against a claim for $65.97 million linked to a green hydrogen electrolyser manufacturing plant in Gladstone, Queensland.
- 02The funding was granted in 2021 by the former Labor government, which has since changed its green energy policies.
- 03Barrister Michael Hodge KC emphasized that the expected project benefits were tied to policies that have been abandoned by the current government.
- 04Justice Melanie Hindman will decide the trial's date and length during a review next month.
- 05Fortescue's CEO Gus Pichot expressed disappointment that the issue has escalated to court, highlighting concerns over future investments in Queensland.
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Fortescue, the mining giant owned by billionaire Andrew Forrest, is contesting a claim by the Queensland government to recover $65.97 million for a failed green hydrogen project. The funding was allocated for establishing a manufacturing plant for green hydrogen electrolysers in Gladstone, Queensland, and was granted by the previous Labor government in 2021. In court, Fortescue's barrister, Michael Hodge KC, argued that the government’s assumption of loss equating to the funding amount is an overreach. He noted that the funding had been utilized appropriately and linked to clean energy policies that have since been abandoned by the current government. Fortescue is particularly focused on two claims: the damages related to the state funding and an additional $4 million contractual issue. The trial's schedule will be reviewed next month, with a court date set for June 8. CEO Gus Pichot expressed concerns that such a significant claim could deter future investments in Queensland, not just from Fortescue but also from other companies in emerging industries.
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If the court rules in favor of the Queensland government, it could set a precedent that discourages future investments in green energy projects in the state.
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