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September 5, 2025
Andrew Forrest's Fortescue is still to repay the tens of millions of taxpayer dollars directed towards the company's since abandoned hydrogen projects in Queensland.
Science Minister Tim Ayres this week confirmed in answers to questions on notice from opposition finance spokesman James Paterson that while the Department of Industry and Innovation expected the grant to be repaid, Fortescue had not yet done so.
Federal taxpayers contributed almost $50m towards Fortescue's much-hyped plan to build a green hydrogen gigafactory at Gladstone in Queensland.
The project was dumped by the iron ore heavyweight in July as part of a major winding back of the company's hydrogen ambitions.
The Queensland government in August launched legal action against Fortescue seeking to recoup the $66m it had paid to the company under a $92.5m funding package for the same project.
That funding was originally put in place by the previous state Labor government.
Senator Ayres made it clear when Fortescue first pulled the pin on the green hydrogen project that the commonwealth would look to recoup the money it had contributed.
Fortescue said at the time it would return funding "where required under the grant agreement" and conversations with the government were already under way.
In response to Senator Paterson's questions, Senator Ayres said the department would take steps in accordance with the grant agreement's repayment provisions if the funds were not returned in full.
The minister said that while the commonwealth funding was subject to a number of conditions, those conditions did not include a warranty that the project would actually be completed. "Grant payments are subject to satisfactory progress on the project for the duration of the grant agreement," he said.
"Under the terms of this grant, the grantee is required to use project assets funded by the grant for a designated purpose, to ensure those assets are not left unused, used for any other purpose or otherwise disposed of during a designated period."
Senator Paterson said it had now been more than a month since Dr Forrest "publicly promised to return taxpayers money for his abandoned green hydrogen dreams".
"There should be no further delays in reimbursing taxpayers, and the Albanese government must ensure every cent is returned promptly," the Liberal senator said.
"The Queensland government has already commenced legal action to recover their funds, but so far federal Labor seems to have no plans except to hope it will turn up in their bank account.
"This is not a trivial amount of money Finance Minister Katy Gallagher should be showing much greater interest in recovering the debt."
A spokesman for Fortescue said the company was still in discussions with the department, and would return funds "where required under the grant agreement".
The grant was one of 17 made under the Albanese government's Modern Manufacturing Initiative's manufacturing collaboration stream.
Fortescue last month reported a full-year net profit of $US3.4bn ($5.24bn), down 41 per cent on the previous year, with revenue down 15 per cent on the back of weaker iron ore prices.
The company announced a final fully franked dividend of 60c, bringing total dividend payouts for the year to $1.10 a share the smallest payout from the company in seven years.
Dr Forrest and Nicola Forrest, who are separated but collectively control 36.7 per cent of Fortescue, are set to collect about $678m from the final dividend.
Fortescue announced the end of its Gladstone ambitions at the same time as it ditched plans to spend almost $900m on a hydrogen project in Arizona.
The company's $140m PEM50 hydrogen plant in Queensland was opened about a year ago but mothballed in May when some 90 staff were cut from its hydrogen division.