Fortescue, the green energy and mining company chaired by iron ore magnate Andrew Forrest, has cancelled two significant green hydrogen projects—one in Arizona, USA, and the other in Gladstone, Queensland—amid shifting policy landscapes and internal strategic changes.
Gus Pichot, Fortescue’s CEO of Growth and Energy, attributed the decision partly to a change in U.S. policy under the Trump administration, noting a broader retreat from renewable energy support. “The lack of certainty and a step back in green ambition has stopped the emerging green energy markets, making it hard for previously feasible projects to proceed,” Pichot said, referring to the company’s US$550 million hydrogen production plans in Arizona.
Simultaneously, Fortescue has shelved its PEM50 project in Gladstone, which had aimed to produce up to 8,000 tonnes of green hydrogen annually. The decision reflects a broader “strategic shift away from electrolysers,” according to Pichot, who said the company would now focus on advancing technologies to deliver low-cost hydrogen for domestic green industry.
Despite the cancellations, Fortescue reaffirmed its commitment to green hydrogen as a key component of its future strategy. Pichot said the company is reviewing alternative uses for both sites in Arizona and Gladstone, while continuing to progress its green metals project in Western Australia’s Pilbara region.
The abandoned projects add to a growing list of stalled hydrogen developments globally, prompting renewed scrutiny of the fuel’s commercial viability. Simon Nicholas, a steel sector analyst at the Institute for Energy Economics and Financial Analysis, criticised what he called the “hype” around green hydrogen. “Policymakers have been distracted by impractical applications, like home heating and blending hydrogen into gas networks,” he said, suggesting subsidies should be redirected to industrial uses such as fertiliser production and green steel.
The Australian federal government, which allocated $44.9 million to a separate Fortescue initiative—the Gladstone Electrolyser Facility—has acknowledged potential spill-over effects from the PEM50 cancellation. A spokesperson for Industry Minister Tim Ayres called the decision “disappointing” but reiterated that green hydrogen remains “essential to manufacturing and industry in a net zero future.”
The Department of Industry is currently in discussions with Fortescue regarding the delivery of the remaining Gladstone project. It has also signalled that government grant agreements typically contain provisions for reclaiming funds if project outcomes are not met.
In a statement, Fortescue confirmed it had been “upfront with the government” and would return funds “where required under the grant agreement,” adding that discussions were already underway.
