The Queensland Government is pursuing legal action to recover approximately $66 million paid to mining and energy company Fortescue for its failed hydrogen development project in Gladstone. The matter was listed for review before the Supreme Court of Queensland on May 21 as the State Government attempts to reclaim public funds allocated under the former Labor government. The proposed project was originally promoted as a major renewable energy and green hydrogen initiative designed to support Queensland’s transition to cleaner industry and create jobs in Central Queensland. However, the development failed to proceed as planned, prompting scrutiny over the funding agreement and the use of taxpayer money. The legal dispute centres on whether the State is entitled to recover grant funding provided to Fortescue after the project stalled. The case adds to broader debate around government support for large-scale renewable hydrogen ventures and investment risks associated with emerging energy technologies.
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Queensland Government Seeks Return of $66 Million Over Failed Gladstone Hydrogen Project
By 19News Editorial Team · Published 22 May 2026
Gladstone Queensland · Queensland News
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The Queensland Government is pursuing legal action to recover approximately $66 million paid to mining and energy company Fortescue for its failed hydrogen development project in Gladstone. The matter was listed for r...
The Queensland Government is pursuing legal action to recover approximately $66 million paid to mining and energy company Fortescue for its failed hydrogen development project in Gladstone. The matter was listed for review before the Supreme Court of Queensland on May 21 as the State Government attempts to reclaim public funds allocated under the former Labor government. The proposed project was originally promoted as a major renewable energy and green hydrogen initiative designed to support Queensland’s transition to cleaner industry and create jobs in Central Queensland. However, the development failed to proceed as planned, prompting scrutiny over the funding agreement and the use of taxpayer money. The legal dispute centres on whether the State is entitled to recover grant funding provided to Fortescue after the project stalled. The case adds to broader debate around government support for large-scale renewable hydrogen ventures and investment risks associated with emerging energy technologies.
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