Fortescue is accelerating the rollout of an off-grid renewable energy system in Western Australia, aiming to replace diesel and prove clean power works at mining scale
Fortescue accelerates its off-grid renewable energy rollout
Green energy in Australia is entering a new phase as Fortescue pushes to phase out fossil fuels across its mining operations by 2028. The Australian mining giant, among the world’s leading iron ore producers, said it will fast-track over the next two years the deployment of an off-grid clean energy system designed to eliminate fossil fuels, especially diesel, from its extraction activities. The move follows rising geopolitical tensions in the Middle East and aims to contain energy costs.
A “real zero” target beyond net zero
Fortescue has set more ambitious goals than many of its iron ore peers. By 2030, the company plans to achieve what it defines as “real zero”, not net zero, meaning it will bring operational carbon emissions to zero through direct reductions rather than relying on offsets.
At the core of this strategy is the Pilbara Energy Connect project, an integrated renewable energy network linking operational sites to renewable generation and battery storage, enabling efficient distribution of clean electricity across the Pilbara region. Once completed, the system will include more than 620 kilometers of high-voltage transmission lines, supported by 1.2 GW of solar capacity, over 600 MW of wind generation, and between 4 and 5 GWh of large-scale battery storage.
Toward 24-hour operations without fossil fuels
By early 2027, the company expects to have installed 290 MW of renewable capacity to support daytime production at its Pilbara mining sites. The plan is projected to save nearly $100 million in fossil fuel costs by 2027, alongside additional reductions in unit operating costs between $2 and $4 per ton.
Fortescue aims to make the system capable of running its operations continuously over 24-hour cycles without fossil fuels by the end of next year.
Through this project, the company intends to demonstrate that even at industrial scale, renewable energy can serve as a reliable and cost-competitive alternative to fossil fuels. The longer-term objective is to commercialize and replicate this green grid model globally, offering the technology through licensing or as a service to other industrial players.
A broader push to decarbonize heavy industry
Fortescue is engaged in a wide-ranging effort to decarbonize heavy industry, a transition that spans infrastructure, energy systems, and operational processes. In its latest financial report, the company said it invested $405 million in decarbonization initiatives and is gradually replacing diesel-powered mining equipment with zero-emission alternatives.
In 2025, however, Fortescue also announced a significant scaling back of its green hydrogen ambitions, canceling several projects in Australia and the United States.
