Gadens advised the State of Queensland and Economic Development Queensland in a landmark dispute with Fortescue Hydrogen Systems Australia concerning public funding provided by the former State Government to assist Fortescue to develop and operate an electrolyser manufacturing facility in Gladstone.

Fortescue abandoned the project and repudiated the funding agreement, citing a strategic shift away from electrolyser technology. This gave rise to a dispute concerning the consequences of Fortescue’s decision, including whether the funding was repayable.

The State commenced legal proceedings to recover the funding.

The matter raised complex and novel questions of contract law, including how loss should be assessed where government funding is provided to advance public policy and economic development objectives rather than to generate a direct commercial return.

The dispute was resolved through a confidential settlement. While the detailed settlement terms are confidential, the settlement ensures that value from the State's investment has been retained in Queensland for Queensland taxpayers, including through the transfer of project land, an electrical substation and associated common-user infrastructure, together with other agreed arrangements.

The matter harnessed Gadens’ deep expertise across disputes, government, property and major projects.

Lead Partner, Lionel Hogg, said:

"This dispute sat at the intersection of contract law, government investment and public policy. It required a strategy that addressed not only the legal issues in dispute, but also the broader public interest objectives underpinning the funding arrangements. We were pleased to work alongside the State to navigate these complexities and achieve a resolution that delivered lasting value for Queensland."