Fortescue signs first green grid power deal, securing 20-year customer

Fortescue has signed its first power purchase agreement, making PLS Group the first external customer for its Green Grid and marking a major step towards establishing Fortescue as an energy supplier in the Pilbara.

Under the 20-year agreement, Fortescue has committed to supply a minimum 325GWh of power annually to PLS’ Pilgangoora Operation, with supply expected to commence in 2029. That’s equivalent to the annual electricity use of around 45,000 Australian homes. This investment is consistent with Fortescue’s strategy to expand its green energy infrastructure in the Pilbara to meet growing demand from industry.

Fortescue will build an approximately 25-kilometre, 220kV transmission line to connect the Pilgangoora Operation to its Green Grid, helping power the lithium miner's recently approved A$1.9 billion expansion. PLS will fund the entire transmission line and own 20 kilometres of it, with Fortescue owning the remainder.

This builds on Fortescue’s rapid rollout of transmission lines across the Pilbara with 550 kilometres of the planned 660-kilometre network already built – one of Australia’s fastest transmission builds.
Fortescue Metals CEO, Dino Otranto, said: “We started building the Green Grid for our own operations, but we could see strong demand for cheap, green, reliable power across the Pilbara and an opportunity to supply other customers too.

“This agreement is an important first step and cements our role as an energy supplier. It will help power PLS’ expansion, support economic growth in the region, and create a new, long-term revenue stream for Fortescue.

“PLS is our first customer, with a strong pipeline of others across the Pilbara looking to our Green Grid for greater choice and flexibility in how they source their power.”

PLS Managing Director and CEO, Dale Henderson said: “We commend Fortescue's leadership in developing the Green Grid and are pleased to partner with them as their first external customer. This agreement will deliver lower-cost, lower-emissions power to our long-life Pilgangoora operation, further strengthening our competitiveness in the global lithium industry.”

Fortescue is building one of the world’s largest off-grid renewable energy systems. The Green Grid combines solar, wind, battery storage, transmission and intelligent energy management to power Fortescue’s mining, rail and port operations, as well as other customers.

More than 1.3GW of solar and wind capacity, and over 1GWh of battery storage, is already operational or under construction. Fortescue has more solar capacity under construction than any other renewables developer in the country, with over 6,000 panels being installed each day.

The Green Grid is expected to reach 2.4GW of solar and wind, firmed by 4-5GWh of battery storage.

“Cost. Climate. Control. That’s the case for the Green Grid. We used 680 million litres of diesel last year, and every 10-cent rise in diesel prices adds almost US$70 million to our annual costs. Replacing diesel with renewable power improves our competitiveness, cuts emissions, reduces our exposure to volatile fossil fuel prices and gives us greater control over when and where we use energy,” Mr Otranto said.

You can find further information about the Green Grid here.

Imagery is available here.