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The rising pressure across the globe to reduce carbon emissions in hard to abate industries is a factor supporting the growth of the demand for technology to support the creation of true, green hydrogen. Fortescue’s PEM50 Project in Queensland, Australia, is a powerful demonstration of our hydrogen production systems’ technical capability and commercial viability. 

Project Summary

Fortescue’s Gladstone PEM50 project is a two-stage 50 megawatt (MW) green hydrogen production plant in Gladstone, Queensland.

The industrial scale plant will use Fortescue’s Proton Exchange Membrane (PEM) hydrogen production system. It will be located adjacent to Fortescue’s existing electrolyser facility and produce up to 8,200 tonnes of green hydrogen per annum from 2025.

Construction will commence on stage one works, which will include the installation of 30MW production capacity, in 2024. The installation of an additional 20MW as part of the plant’s second stage is expected to be commissioned in 2028.

The Project will produce hydrogen at an industrial scale, as well as demonstrate the high quality of Fortescue’s production systems.

The Project expands the Company’s Queensland footprint and leverages the local skills, capabilities, and relationships Fortescue’s team has developed over the past two years.

It sends a clear signal to the offtake market that industrial production in Australia is possible, and that Queensland will have a serious role to play as a green hydrogen producer.

The Project also allows Fortescue to demonstrate the quality of its electrolyser systems, positioning Fortescue as one of only a handful of global manufacturers of the technology for industrial scale application.


  • $150m

    Capital expenditure

  • ~8,000

    Production vol (tonnes pa)

  • 2025

    Commercial Operational Date

Project Funding

The capital expenditure for the Project is up to US$150 million over two phases, with approximately US$40 million of capital expenditure estimated in FY24. The capital expenditure includes the supply of equipment and the construction and installation of the electrolyser, balance of system, balance of plant and associated infrastructure. The Project will access the remaining grant of US$13 million that was previously awarded to Fortescue’s Gladstone Electrolyser Manufacturing Facility, under the Modern Manufacturing Initiative.


Power and Water Sources

The Gladstone PEM50 Project will utilise renewable energy supplied from Australia’s National Energy Market, which will be procured and managed by Fortescue’s Australia power team. It is anticipated that power will initially be purchased from the spot market, and flexible operations will be employed to manage pricing. Power will be supplied to the Project via a 275 kilovolt transmission line, newly installed by Queensland Powerlink.

Water will be supplied by the Gladstone Area Water Board through an upgraded connection established for the Gladstone Electrolyser Manufacturing Facility. There is sufficient allocation to support the phase one 30MW capacity, with upgrades to the existing water infrastructure required to be completed by the Queensland Government to support the full production capacity of 50MW.



We're leading the green industrial revolution

We’re developing the technologies to decarbonise hard-to-abate sectors (like our iron ore operations) while building a global portfolio of renewable energy projects.

Green iron and green steel presents a huge opportunity for the iron ore industry and we are working hard to ensure we are at the forefront of technologies being developed in this regard.

By harnessing the world’s renewable energy resources to produce renewable electricity, green hydrogen, green ammonia and other green industrial products, we’ll help our planet step beyond fossil fuels.

  • Green hydrogen
  • Green steel
  • Critical minerals
  • Solar power
  • Green ammonia
  • Hydropower
  • Wind energy
  • Geothermal energy