The State Government says it has reached a confidential settlement with Fortescue to resolve their dispute over public funding contributions to Fortescue’s electrolyser manufacturing facility in Gladstone.

In a joint statement with Fortescue, it said the settlement ensured that value from the State’s $66 million investment had been retained in Queensland for Queensland taxpayers.

This included through the transfer of the project land, an electrical substation and associated common-user infrastructure, together with other agreed arrangements.

“This settlement recognises the assets and infrastructure remaining in Queensland and allows both parties to move forward,” the parties said.

The Crisafulli Government launched legal action in August last year to recoup State funds approved to support the project under the previous Labor Government in 2022.

Related: State seeks hydrogen cash refund from Fortescue

The Australian reports that documents in the Supreme Court registry of Brisbane show that action has been discontinued.

Deputy Premier Jarrod Bleijie has previously accused the former Labor Government of spending public money on a “fantasy project” in relation to Fortescue’s green hydrogen plans in Gladstone.

The company – led by billionaire Andrew Forrest – had proposed the world’s largest electrolyser manufacturing plant and a green hydrogen production facility in Gladstone.

The Gladstone Electrolyser Manufacturing (GEM) Centre, which had begun production, and the proposed PEM50 green hydrogen project were located at Aldoga Industrial Estate.

The $12.5 billion Central Queensland Hydrogen Project (CQ-H2) proposed to be built in the same area has also been abandoned by major backers, including government-owned power corporation Stanwell, which confirmed last year that it was walking away from hydrogen development activities.