Fortescue Cancels Flagship Hydrogen Projects: UK Should Take Notice - CleanTechnica

Fortescue’s recent cancellation of two flagship green hydrogen projects—one in Gladstone, Australia, and another in Arizona, USA—signals significant economic challenges facing hydrogen as a mainstream energy source beyond industrial feedstock use. Despite substantial financial backing, government grants, and initial optimism, both projects proved financially unviable amid shifting policy landscapes and market realities. The Arizona project, an 80 MW facility, was undermined by the removal of US hydrogen subsidies, leading to a $150 million pre-tax loss write-off. Similarly, the Gladstone plant, partially operational and supported by about A$60 million in government grants, was shut down due to high costs and competitiveness issues, with potential grant repayments under evaluation. These setbacks underscore hydrogen’s struggle to compete economically without extensive subsidies, a pattern echoed globally as major firms like BP, Shell, and Iberdrola scale back or abandon hydrogen energy projects. The broader hydrogen industry faces mounting practical and financial hurdles, including infrastructure challenges related to storage, distribution,