Fortescue agrees to repay hydrogen grant for | Australian Markets
Fortescue has agreed to pay back taxpayer funds that had been poured into a nixed inexperienced hydrogen project “where required”, following strain from the Albanese Government.
The Andrew Forrest-controlled miner on Thursday revealed it could dump inexperienced hydrogen initiatives in Australia and the US because it struggles to discover a business pathway to full-scale manufacturing of the clean fuel, which is produced by the electrolysis of water through renewable power sources.
In its quarterly replace, Fortescue stated its Arizona hydrogen project within the US and the PEM50 project in Queensland’s Gladstone had been canned and an evaluation was below method to re-purpose the property and the land.
The news has raised eyebrows in Canberra, and the Labor Government has signalled its intention to reclaim any taxpayer money that went in direction of development of the Queensland project.
A spokeswoman for Industry and Innovation Minister Tim Ayres informed The Australian that the Government believed it could be applicable for Fortescue to hand back funds it acquired below the Modern Manufacturing Initiative.
“The decision not to proceed the PEM50 Hydrogen plant in Gladstone is a commercial matter for Fortescue,” the spokeswoman informed the newspaper.
“However, if Fortescue does not proceed with the delivery of the MMI-funded Gladstone Electrolyser facility project it would be reasonable for the government to seek reimbursement for where the grant agreement hasn’t been fulfilled.”
Fortescue stated it was in talks with the Federal and Queensland governments over the longer term use of the land.
“We have been upfront with the Government and will return funds where required under the grant agreement,” a spokeswoman stated.
“Those conversations are already under way.”
Fortescue expects to e-book a $US150m ($227m) writedown after binning the 2 initiatives.
The West Australian in May revealed the $US150m Gladstone electrolyser manufacturing plant was in critical doubt after 90 staff had been laid off throughout the location and Fortescue’s Perth headquarters. Mark Hutchinson give up as Fortescue’s inexperienced power boss much less than two weeks later.
These job cuts had been the latest leg of a big cull throughout the company’s sprawling inexperienced hydrogen workforce that began in July final yr.
Fortescue in February stated the re-election of Donald Trump jeopardised its $US550 million inexperienced hydrogen project within the western US state of Arizona.
It was earmarked for beneficiant grants below the Biden administration however President Trump’s workforce seem to have poured cold water on these taxpayer funding hopes.
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