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Fortescue Metals Group has announced a suite of ambitious initiatives to decarbonize its iron ore mining operations in the Pilbara region of Western Australia. The plan includes a US$680 million investment in a renewable energy grid, the addition of a 15th electric excavator, and the commencement of construction on its first wind energy project.
The company has stated a target of achieving "real zero" fossil fuel use for its power, transport, and mining equipment by 2030.
Green Grid and Infrastructure Investment
Fortescue has announced a US$680 million investment to develop the Pilbara Green Energy Project, an off-grid renewable energy system. This project is separate from the company's broader US$6.2 billion plan to decarbonize its iron ore mines.
The first phase of the grid is expected to provide 200 MW of firmed power, with potential expansion to multiple gigawatts beyond 2030. Fortescue anticipates it will be able to power all Pilbara operations for 24-hour periods without fossil fuels by the end of 2027. The company projects annual savings of at least $US100 million ($A150 million) from the transition.
The planned infrastructure includes:
- 1.2 GW of solar capacity
- Over 600 MW of wind generation
- 4-5 GWh of battery storage
- 620 km of transmission lines
Fortescue expects to have 290 MW of installed renewable capacity by early 2026, enabling daytime "green processing" at its ore facilities. The company states the complete green grid will be operational by the end of 2028.
Fortescue is marketing this technology to potential customers, estimating that 2 GW of wind and solar with 4 GWh of battery storage could be delivered for approximately $2.5 billion. CEO Dino Otranto has confirmed discussions with potential clients, including data centers and green ammonia producers.
Nullagine Wind Project
Fortescue has commenced construction on the Nullagine wind project, its first wind energy development. The project has a capacity of 133 MW and will incorporate 17 turbines.
Key specifications of the project include:
- 7.8 MW turbines provided by Envision, representing Fortescue's largest turbine deal in Australia to date
- A hub height of 188 meters, which Fortescue states sets a new global benchmark for onshore wind
- Blades measuring 89 meters in length
- "Self-lifting" tower technology developed by Spain's Nabrawind, a company Fortescue acquired last year
According to Fortescue, the Nabrawind self-lifting technology reduces concrete requirements for foundations, enables access to higher wind speeds, and lessens logistical complexities by requiring smaller cranes. The turbines are engineered for low-wind environments and designed to withstand extreme weather, including cyclones.
A prototype of the Nabrawind-integrated turbine has been installed at an Envision testing facility in China and is scheduled for relocation to the Pilbara by June 2026.
The Nullagine project is expected to serve as the initial phase for the adjoining Bonney Downs wind project, which could potentially reach up to 2 GW with 200 turbines. The company is also exploring additional capacity at its East Pilbara Renewable Hub.
Fleet Electrification
Fortescue announced that it has added a 15th electric excavator to its mining fleet in the Pilbara region. The company stated that its electric excavators have moved 100 million tonnes of ore.
According to Fortescue, each electric excavator saves approximately one million litres of diesel per year. The excavators are connected to the company's power supply via an electric cord.
Fortescue plans to install a total of 70 electric excavators. The company also plans to introduce up to 400 fully electric haul trucks, each weighing approximately 240 tonnes. The first trucks from Liebherr are scheduled to arrive mid-year, followed by trucks from China's XCMG.
Ongoing Solar Projects
Fortescue is concurrently building several solar facilities. The 190 MW Cloudbreak solar farm, where over 300,000 panels have been installed, is expected to be completed in the coming months. Construction is also underway on the 600 MW Turner River solar hub.
Green Metal Project
Fortescue reported that first hot metal production at its Green Metal Project in Christmas Creek is expected in the June quarter.
Other Developments: InfraBuild Steel Mill
InfraBuild's Laverton steel mill in Melbourne has become the first steel mill in Australia to source more than 50% of its electricity from renewable energy since April 1, 2026. The renewable power is supplied by a wind farm contract.
Key details of this development:
- The remaining power is drawn from the grid, which uses a mix of fossil fuels, renewables, and storage
- InfraBuild aims to reach 100% renewable power by 2030
- Its other electric furnace in Rooty Hill, Sydney, currently sources 25% of power from renewables
- The company plans to expand Laverton's production from 750,000 to 1 million tonnes by 2028, and Rooty Hill's from 620,000 to 680,000 tonnes
- About 75% of InfraBuild's steelmaking emissions come from electricity, with the remainder from natural gas
- The company is exploring biomethane to replace natural gas in parts of its operations
InfraBuild CEO Francisco Irazusta stated that the move represents a reduction in CO2 emissions per tonne of steel.
Industry Context and Statements
Regarding Fortescue's developments, CEO Dino Otranto stated that wind, alongside solar and batteries, provides the power needed to electrify the company's operations across the Pilbara. He noted that demand for green power from data centre developers is high, citing Microsoft's US$25 billion AI infrastructure announcement in Australia.
Fortescue's decarbonization targets differ from statements made by other mining companies. BHP and Rio Tinto have stated that the technology for rapid decarbonization of their large mines does not yet exist, despite their investments in renewable energy at some projects.
Industry leaders have cautioned that there is insufficient high-quality scrap metal globally to meet demand, and that green hydrogen-based direct reduced iron technology remains expensive and limited in availability.