Australia's Fortescue Fast-Tracks Green Energy for Mining Operations

Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

Summary

Australian mining firm Fortescue is on track to complete an industrial-scale green energy grid to power its Pilbara mining operations, years ahead of the original target.

Mining Overhaul

Australian mining major Fortescue has announced a fast-tracked green energy grid plan that will eliminate diesel and other fossil fuels from its mining operations. The company said that it is accelerating the rollout of a landmark renewable energy power grid for its Pilbara mining operations with a completion date of 2028 - two years earlier than expected. The company stated that the ongoing plan to remove diesel and gas from its mining power and transport mix will see 290 megawatts (MW) of renewable capacity installed by early next year to power its Pilbara sites in the north-west of the country. 

According to Industrial Info Resources data, there are four active Fortescue renewable energy projects in Australia worth almost US$7 billion in investment. Subscribers to Industrial Info Resources' Global Market Intelligence (GMI) Power Project Database can learn more--including key components, timescales and necessary equipment--from the detailed project reports.  

The grid boasts a combination of solar, wind and battery storage technologies which will supply the fixed energy requirements of its ore processing facilities, enabling daytime "green processing". Later that year, the system will power all of Fortescue's operations for 24-hour periods without fossil fuels. This is well ahead of previously announced Real Zero plans, targeting December 2030. The full grid will include 1.2 gigawatts (GW) of solar, more than 600 MW of wind farms, and 4-5 gigawatt-hours (GWh) battery storage from China's BYD. It said that it expects US$100 million in fossil fuel cost savings by next year and when complete "a further reduction in C1 unit costs of at least US$2- US$4/wet metric tonnes. 

City-Sized Power Grid

The company stated: "It is the world's first industrial and fully integrated green energy grid dedicated to eliminating fossil fuels from large-scale industry, at a scale comparable to a city. Fortescue intends to replicate and commercialise this technology wherever it is invited. The company is targeting diesel elimination in particular -- a fuel that is 100% imported and subject to extreme price volatility, unreliability and hardship -- that also costs the taxpayer billions in subsidies. Unlike other large renewable hubs, which feed intermittently into national or other power systems, Fortescue's off-grid system will be the largest of its kind dedicated to decarbonising major industry, around the clock."

Electric Transport

Fortescue is at the forefront of electrifying its entire mining fleet, from trucks to dozers, excavators and graders. The company uses around 700 million litres of diesel a year at its mines, making it one of the country's largest consumers. Its goal is to replace most of that with electric alternatives by 2030. There are a number of EV trucks already in operation, and it has replaced 15 of its 70 excavators with electric ones, each of which saves 1million litres of diesel a year. Last year it signed a number of key deals, including one with Chinese construction and mining equipment manufacturer XCMG to supply up to half of its future fleet of 300-400 zero-emissions 240-tonne haul trucks, with phased deliveries planned from 2028 to 2030. Liebherr, with its manufacturing facilities in the U.S., is expected to provide the other half of the haul truck fleet and electric excavators under an existing 2024 agreement. Discovery Alert assessed the total cost of ownership of the electric trucks versus their diesel equivalents using energy cost differentials, maintenance cost reductions and productivity improvements resulting from enhanced equipment availability. It found that over an 8,000-hour period, an EV truck costs US$470,000 less to run and, adding in maintenance and insurance savings, those savings rose to US$560,000. Fortescue said it is looking to save US$300-$400 million when it fully electrifies its fleet. 

Key Takeaways

• Australian mining major Fortescue expects to eliminate diesel and other fossil fuels from its mining operations by 2028.
• The company's industrial-scale green energy grid will have 1.2 gigawatts (GW) of solar, over 600 MW of wind farms, and 4--5 gigawatt hours (GWh) battery storage.
• The company has also ordered 300-400 240-tonne electric trucks to replace its diesel fleet by 2030. 

About Industrial Info Resources

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).