Backing up solar PV with gas gensets and energy storage, Fortescue taps various energy sources to lower its overall generating costs. The Pilbara Generation Project also allows Fortescue to leverage its existing energy infrastructure including the Fortescue River gas pipeline and generation capacity at the Solomon power plant and make use of renewable power sources.
Capital expenditure for the project will be funded by a combination of operating cashflow and low cost asset finance. Fortescue stressed its capital expenditure guidance of US$2.4 billion for fiscal year 1020 is maintained, incorporating the Pilbara Energy Connect program.
Connecting remote gensets at various mines
Striving for sustainability, Fortescue said the new-build units will add to the Chichester solar-gas-hybrid project. Developed with Alinta Energy, this project will see up to 100 per cent of daytime stationary energy requirements of the Chichester Hub iron ore operations powered by renewable energy.
"Importantly, Pilbara Energy Connect allows for large-scale renewable generation such as solar or wind to be connected at any point on the integrated network," said Fortescue's CEO Elizabeth Gaines.
Alinta will build, own and operate the 60 MW solar PV generation facility at the Chichester Hub and 60km transmission line linking the Christmas Creek and Cloud break mining operations with Alinta Energy’s Newman gas-fired power station. On completion this will integrate with the Pilbara Energy Connect program, via 275km of high-voltage transmission lines.
Going forward, Fortescue plans to invest $700 million in various energy projects, with $250 million dedicated for Chichester phase one while the Iron Bridge hybrid project will receive the remaining US$450 million. Rival mining companies have invested in similar solar PV and energy storage capacity, notably B2Gold, Gold Fields, Harmony Gold and Norgold.