Queensland government takes legal action over Twiggy Forrest’s green hydrogen project
Queensland’s deputy premier has ordered legal action to recoup $65m in taxpayer money its state Labor predecessor handed to Fortescue.
Queensland’s Crisafulli government has launched legal action to recoup $65m in taxpayer money its state Labor predecessor handed to Andrew Forrest’s Fortescue for the billionaire’s abandoned green hydrogen projects.
A default notice and notice to comply were issued by Queensland government lawyers on August 22 for the funds, approved under a secretive agreement struck in 2022 by the then Labor Palaszczuk government and touted as necessary to lure Fortescue’s two ambitious projects to the central Queensland city of Gladstone.
It is understood deputy premier Jarrod Bleijie ordered the action to be taken against Fortescue.
The agreement, which was personally negotiated by Steven Miles – who later became premier and led Labor to defeat at October’s state election – was worth $92m when including offers of payroll tax deductions for Fortescue.
Australia’s richest businessman had proposed plans for the world’s largest electrolyser manufacturing plant and a green hydrogen production facility in Gladstone.
The two projects were to neighbour a Palaszczuk government-led proposal to build the $12.5bn Central Queensland Hydrogen Project (CQ-H2), which it hoped would become a global exporter of the energy.
All three projects have now been abandoned by their major backers, with Fortescue recently announcing it was not going ahead with its green hydrogen plans in Gladstone.
The Australian this month revealed the financial exposure of the state government to Fortescue’s projects and that Crown law had been engaged to pursue repayment of the taxpayer funds from the West Australian-based company.
In parliament on Tuesday, Mr Bleijie said legal demands had been made against the company.
“On behalf of Queensland taxpayers, I’ve directed my department to advise Fortescue that the Crisafulli government issue a notice to comply and a default notice and seek full reimbursement of the $65.97m towards this now discontinued project,’’ he told parliament.
It is understood the deal included up to $20m in payroll tax rebates over eight years.
A further $72.5m was offered to support the development of the land and enabling infrastructure – including power, wastewater and transport infrastructure – for the manufacturing facility and green hydrogen plant.
It is understood the government is considering reimbursing the $4.5m paid by Fortescue for the state-owned land on which its facility was built.
Mr Bleijie accused the former Labor government of spending public money on a “fantasy project”.
“With the Labor government, there was a consistent misuse, abuse and waste of taxpayer dollars in vanity projects of the opposition leader (Steven Miles) and the deputy opposition leader (former treasurer Cameron Dick); absolute fantasy projects,’’ he said.
Fortescue has previously said it would negotiate with the Crisafulli government over the repayment request.
It is understood the legal action was taken as negotiations continue.
A spokesman for Fortescue issued a statement late Tuesday saying the company “continues to act in good faith and remains in constructive, in-confidence discussions with the Queensland Government.
“We are committed to working with the Government to assess the requirements of the grant agreement.
“We will return every dollar required under that agreement.”
In a separate statement, a spokesman for the billionaire said: ” Dr Forrest cares deeply about Queensland, and his objective has always been long-term investment and supporting Queenslanders by creating jobs and unlocking new industries.
“Across Fortescue, Minderoo Foundation and Tattarang, we have more than $17 billion in investments underway across the state – the majority focused on renewable energy through our companies Squadron and Windlab.
“Through Minderoo Foundation, we continue to back Queenslanders with the resources and capital to drive lasting impact, investing nearly $37 million over the past five years, helping local communities and funding breakthrough science at Queensland universities.
“We have acted in good faith and remain committed to being a productive partner to the Queensland Government.
“The Fortescue team is in active discussions with the Department and would like these to continue constructively.”
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