Fortescue aims to phase out diesel use in its Pilbara mining operations through a large-scale renewable energy system
The planned green grid will combine solar, wind, and battery storage to enable 24-hour fossil-free operations by the end of the decade
Fortescue expects major cost savings from reduced fuel imports and is exploring commercial deployment of the technology globally
Australia-based iron-ore producer Fortescue says it is accelerating work on what it describes as the world’s 1st industrial and fully integrated green energy grid. It will help the company to eliminate fossil-fuels, particularly diesel from its iron-ore mining operations as the fuel is ‘100 percent imported and subject to extreme price volatility, unreliability and hardship’.
“As global energy supply chains become increasingly unstable and the massive risks of fossil fuel dependence are exposed, Fortescue is moving faster – proving industry can power itself with green energy, control its costs, and take back control of its largest risk – energy,” stated the company. It says this plan is well ahead of its announced Real Zero plans, targeting December 2030.
The Australian group expects to save $100 million in fossil fuel costs by next year. At the end of the decarbonization program, it expects to see a further drop in C1 unit costs of at least $2 to $4/wet metric tonne.
It explains, “This demonstrates that eliminating fossil fuels is not only achievable, but economically superior.”
The off-grid system it is developing will be designed to replace fossil fuels and operate around the clock for heavy industrial use. Fortescue says it will be able to replicate and commercialize this technology anywhere across the world where it is invited.
By early next year, it plans to complete the installation of 290 MW of renewable energy capacity for its Pilbara operations to meet daytime green processing. By the end of 2027, the system will be able to power its operations 24-hours without the need for fossil fuels.
At full scale, the Pilbara green grid will be complete with 1.2 GW solar, over 600 MW wind and between 4 GWh to 5 GWh of battery energy storage system (BESS) capacity. It is targeted to be achieved by 2028-end.
“Following the successful development of its profitable decarbonisation program, Fortescue sees a clear pathway to expand its green energy system by a further approximately 2GW of power generation capacity, firmed with 4GWh of advanced batteries,” it adds. “This would be enabled by Fortescue’s proprietary know-how, patented technologies and exclusively developed AI, and is expected to be delivered for less than US$2.5 billion.”
Already, Fortescue claims, hyperscalers, countries and businesses have expressed interest in either licensing the technology, purchasing it or accepting battery firmed green energy as a service.
