The company had previously planned to construct a 350 MW hydrogen and ammonia plant at Bell Bay, with power provided by Hydro Tasmania.

The company late last year opened a visitor centre in George Town to educate locals about the benefits of green hydrogen.

Two sources have now confirmed that both the employee that staffed Fortescue's George Town centre and the company's Tasmanian regional manager have both been made redundant.

The news followed a parliamentary spat on Wednesday morning, when Labor energy spokesman, Dean Winter, accused the government of botching the implementation of its hydrogen plan, leading to Fortescue's decision to restructure in the state.

"Fortescue Future Industries was promised by you to have the potential to create more than 350 construction jobs and 100 operational roles in the initial phase," Mr Winter said.

"They have now left the state effectively because of your botched hydrogen action plan implementation."

In response, Energy and Renewables Minister, Guy Barnett, said Fortescue was undertaking a restructure across Australia, and that its plans were not specific to Tasmania.

"I am certainly aware of Fortescue Future Industries' plans with respect to their undertaking of an internal restructure. This is across the country, across Australia," Mr Barnett said.

"In fact, they remain committed to Tasmania."

A spokesperson for Fortescue claimed that the company was continuing to work with the Tasmanian government to secure power and water supply deals for its projects in the state.

Two independent sources said Fortescue has suspended plans to progress the project in Bell Bay, but it might return to the project after new power generation from Hydro Tasmania becomes available after 2028.

One of the sources said there was a shortage of 'firming' electricity capacity in the state.

The signing of the memorandum of understanding between the government and Abel Energy over its $1.2 billion Bell Bay hydrogen project signalled there would not be enough 'firming' electricity remaining for other hydrogen project proponents.

In a statement later on Wednesday, Mr Winter said there was frustration within industry over the state of facilities at the Bell Bay site.

"There is still no power or water available for their project - three years after the launch of the Tasmanian Renewable Hydrogen Action Plan," he said.

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