Australian mining giant and prominent green hydrogen proponent Fortescue, led by majority shareholder Andrew Forrest, may be considering the closure of the 2 GW Gladstone hydrogen proton exchange membrane (PEM) electrolyser factory in Queensland.
News that 30 staff have been laid off at the facility, and a further 60 in Perth, Western Australia redeployed or made redundent, has raised doubts about the facility’s future.
A reassessment of the project’s under-construction second stage, the Gladstone PEM50, featured in the company’s March quarterly report raising questions about ongoing costs.
The Gladstone Regional Council issued a statement on the green hydrogen project acknowledging the job losses announcement.
Gladstone Region Mayor Matt Burnett said that while the challenges facing Fortescue’s project are concerning, the Gladstone Region’s industrial strengths and strategic location make it an ideal hub for innovation and investment.
“The Gladstone Region remains open for business. We have a proud industrial heritage that continues to grow and diversify, and we will remain a leader in the transition to clean energy and advanced manufacturing, ensuring we attract new opportunities and create sustainable jobs for our community,” Burnett said.
“We will continue to work collaboratively with industry, government, and our community to drive economic prosperity and support our workforce through this transition, as outlined in the 10-year Gladstone Region Economic Transition Roadmap.”
Burnett added that he looks forward to working with Fortescue and hopefully will see their facility reopen sooner rather than later.
The news follows the Queensland government’s announcement in February 2025 to withdraw it’s support for Australia’s largest proposed green hydrogen project, the $12.5 billion (USD 8 billion) Central Queensland Hydrogen Project (CQ-H2), also in Gladstone, and South Australia’s state government dismantling its Office of Hydrogen Power in May 2025.
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