Mining giant Fortescue says the Queensland government’s bid to claw back nearly $66 million for a failed green hydrogen project is an “overreach” that risks discouraging future investment in the state.
Lawyers for the company owned by billionaire Andrew Forrest laid out part of the argument on Thursday in the Brisbane Supreme Court as to why they should not have to return the funding.
The government is chasing the $65.97 million it had already paid to Fortescue for the establishment of a manufacturing plant for green hydrogen electrolysers in Central Queensland – key to making hydrogen a clean energy – in Gladstone.
Barrister Michael Hodge KC told the court the government was assuming their loss was the same amount as they had contributed, but said the funding – which was granted by the former Labor government in 2021 – had been spent appropriately.
He said the expected benefit of the project had been linked to the clean energy road map of the previous government and another green energy policy ditched by the current government.
“Before it had terminated the contract, it had put an end to that policy, where it said the contribution to that policy was what was going to give rise to the expected benefit,” he said.
Arguing for a short and sweet trial to be scheduled sooner rather than later, Hodge said Fortescue was only concerned with two of the government’s claims: the damages based off the state funding, and a contractual issue where the government was claiming a further roughly $4 million.
“The case has narrowed substantially,” he said.
However, Justice Melanie Hindman decided the trial’s date and length would be decided at a review next month, following the state providing its reply to the defence document on June 4.
In a statement, Fortescue Growth and Energy chief executive Gus Pichot said the company was disappointed the matter had reached the courtroom.
“A claim for more than $65 million in these circumstances represents a material overreach and risks discouraging future investment in Queensland, not only by Fortescue, but by other companies considering major investments in emerging industries across the state.”
The matter will return to court on June 8.
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