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Released July 31, 2025 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Australia's lofty green hydrogen ambitions have been dealt another blow following a decision by mining major Fortescue Metals Group Limited (Perth) to cancel its US$150 million PEM50 Gladstone green hydrogen plant project in Gladstone, Queensland.
The company, which has been a champion for renewable energy and green hydrogen development, admitted that its decision was taken due to commercial challenges and shifting political landscapes. In addition to canning the PEM50 project, it has also abandoned a planned US$550 million green hydrogen project in Buckeye, Arizona, in the U.S., blaming uncertainty of policy under the Trump administration. Speaking at an investor call, the company's new head of green energy investment, Gus Pichot, admitted it is "not easy" being first in a new market: "Regarding the green energy and hydrogen projects, we set ambitious stretch targets, and while the world has changed significantly, we have not. Being first isn't always easy, but to succeed, we must remain nimble and frugal with the resources our shareholders have entrusted with us. I want to make it clear we are not giving up. Green energy and green hydrogen is key to our future, including our green metal strategy. At our PEM50 Project in Australia, we have made a strategic shift away from electrolysers to focus on advancing technologies to provide low-cost hydrogen for the green industry in Australia. This change in direction is vital for the progress of our green iron ambitions. However, it means that the PEM50 Project is no longer needed to test that technology. We will be looking at future opportunities for the site in Gladstone as well."
He added: "Regarding the Arizona Hydrogen Project, as you know, a shift in policy priorities away from green energy has changed the situation in the U.S.. 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. As a result, we can't proceed with our investments as they stand, and we'll explore future opportunities for our site in Arizona."
Industrial Info is tracking a green metals project at Fortescue's Christmas Creek site in the Pilbara region, which the company said remains on track. "On our Green Metals Pilot Project in the Pilbara, I can say that it's progressing. It is under construction, and we will use green hydrogen to produce high purity green iron," said Pichot. Earlier this year, Fortescue closed the country's first and only proton exchange membrane (PEM) electrolyser manufacturing plant at Gladstone, after less than a year due to a lack of demand. With a stated annual production capacity of 2 gigawatts (GW) of PEM stacks, it would have been enough to produce 200,000 tonnes of green hydrogen each year. The plant opened last April and the PEM50 project located nearby was expected to be the next stage of the company's green hydrogen ambitions, using its own homegrown electrolyser technology. For additional information, see April 11, 2024, article - Australia Opens First Hydrogen Electrolyser Plant.
Late last year, Industrial Info reported that one the country's largest planned green hydrogen and ammonia projects, also involving Fortescue, at Gibson Island was abandoned after fertilizer company Incitec Pivot Limited (Southbank, Australia) revealed plans to sell the land that was earmarked as the location. A deal had previously been struck with Fortescue's green energy unit to build a 500-megawatt electrolyser that would be capable of producing 70,000 tonnes per year (T/yr) of green hydrogen that the plant would use to make 400,000 T/yr of green ammonia. For additional information, see November 21, 2024, article - Australia's Landmark Green Hydrogen Project Abandoned.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The company, which has been a champion for renewable energy and green hydrogen development, admitted that its decision was taken due to commercial challenges and shifting political landscapes. In addition to canning the PEM50 project, it has also abandoned a planned US$550 million green hydrogen project in Buckeye, Arizona, in the U.S., blaming uncertainty of policy under the Trump administration. Speaking at an investor call, the company's new head of green energy investment, Gus Pichot, admitted it is "not easy" being first in a new market: "Regarding the green energy and hydrogen projects, we set ambitious stretch targets, and while the world has changed significantly, we have not. Being first isn't always easy, but to succeed, we must remain nimble and frugal with the resources our shareholders have entrusted with us. I want to make it clear we are not giving up. Green energy and green hydrogen is key to our future, including our green metal strategy. At our PEM50 Project in Australia, we have made a strategic shift away from electrolysers to focus on advancing technologies to provide low-cost hydrogen for the green industry in Australia. This change in direction is vital for the progress of our green iron ambitions. However, it means that the PEM50 Project is no longer needed to test that technology. We will be looking at future opportunities for the site in Gladstone as well."
He added: "Regarding the Arizona Hydrogen Project, as you know, a shift in policy priorities away from green energy has changed the situation in the U.S.. 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. As a result, we can't proceed with our investments as they stand, and we'll explore future opportunities for our site in Arizona."
Industrial Info is tracking a green metals project at Fortescue's Christmas Creek site in the Pilbara region, which the company said remains on track. "On our Green Metals Pilot Project in the Pilbara, I can say that it's progressing. It is under construction, and we will use green hydrogen to produce high purity green iron," said Pichot. Earlier this year, Fortescue closed the country's first and only proton exchange membrane (PEM) electrolyser manufacturing plant at Gladstone, after less than a year due to a lack of demand. With a stated annual production capacity of 2 gigawatts (GW) of PEM stacks, it would have been enough to produce 200,000 tonnes of green hydrogen each year. The plant opened last April and the PEM50 project located nearby was expected to be the next stage of the company's green hydrogen ambitions, using its own homegrown electrolyser technology. For additional information, see April 11, 2024, article - Australia Opens First Hydrogen Electrolyser Plant.
Late last year, Industrial Info reported that one the country's largest planned green hydrogen and ammonia projects, also involving Fortescue, at Gibson Island was abandoned after fertilizer company Incitec Pivot Limited (Southbank, Australia) revealed plans to sell the land that was earmarked as the location. A deal had previously been struck with Fortescue's green energy unit to build a 500-megawatt electrolyser that would be capable of producing 70,000 tonnes per year (T/yr) of green hydrogen that the plant would use to make 400,000 T/yr of green ammonia. For additional information, see November 21, 2024, article - Australia's Landmark Green Hydrogen Project Abandoned.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
