Green energy remains a priority for most countries, but that’s not enough to save the 90 employees at Fortescue Metals Group who will lose their jobs.
The Andrew ‘Twiggy’ Forrest’ company has slashed approximately 90 roles from its green hydrogen workforce, shifting focus from manufacturing to research and development amid mounting global challenges. The job cuts span Fortescue’s Gladstone PEM50 electrolyser project in Queensland and operations in Western Australia. The move comes after the company flagged a review of its green energy investments in April, citing market uncertainty and external pressures.
A spokesperson confirmed that Fortescue remains committed to developing a domestic green iron industry, with green hydrogen at its core. “To ensure we can produce the large amounts of green hydrogen we need to make green iron, we are refocusing our efforts into the research and development of new technologies that will deliver green molecules at scale, efficiently and cost-effectively.”
Adjusting to global headwinds
The restructuring was anticipated by Fortescue Energy CEO Mark Hutchinson, who recently warned of a need to realign project timelines in light of shifting market conditions and policy uncertainty. Key projects under reassessment include the Gladstone PEM50 and a green hydrogen development in Arizona, with the company expecting greater clarity by the end of the financial year.
Hutchinson stated that Fortescue Energy is managing its green energy pipeline in a “disciplined manner”, acknowledging that timelines are being adjusted to reflect economic realities and policy changes across key jurisdictions.
Challenges in the green hydrogen sector
Green hydrogen’s momentum has slowed due to a combination of unmet early expectations and tepid demand from end-users. Electrolyser manufacturers have found it difficult to commercialise their technologies at scale, while market instability has led to caution from prospective offtake partners.
This hesitation has been compounded by political shifts in the United States. Although hydrogen tax credits under the Inflation Reduction Act remain in place, broader funding mechanisms such as grants and loans have stalled, affecting companies like Plug Power. Tariffs and supply chain disruptions have also constrained progress.
Policy uncertainty at home and abroad
In Australia, green hydrogen has suffered several setbacks. The Queensland government earlier this year cancelled funding for Stanwell Corporation’s CQ-H2 project, while South Australia’s state government dismantled its Office of Hydrogen Power in May. That move followed the termination of a proposed $600 million hydrogen power plant and electrolyser project in Whyalla, with resources redirected toward the financially troubled Whyalla Steelworks.
These developments underscore the policy volatility hampering sectoral investment and execution, both domestically and internationally.
Fortescue remains cautiously optimistic
Despite the setbacks, Fortescue maintains a broadly positive stance on green hydrogen, reaffirming its view that it remains the “fuel of the future”. The company noted it has made advancements in electrolyser technology and intends to evolve alongside scientific developments. However, this latest pivot indicates a more measured and pragmatic approach to delivering green energy at commercial scale.