The Australian mining group aims to prove that renewable energy at industrial scale can match fossil fuels in both reliability and cost, accelerating its transition to fully fossil-free operations
Green energy in Australia: Fortescue accelerates fossil fuel phase-out
The Australian mining giant Fortescue has announced plans to eliminate fossil fuels from its mining operations by 2028, fast-tracking the deployment of an off-grid renewable energy system.
The company, one of the world’s leading iron ore producers, intends to scale up implementation over the next two years, replacing diesel-based systems across its extraction activities. The move follows geopolitical tensions in the Middle East and is also aimed at reducing energy costs and exposure to fuel price volatility.
From Net Zero to “Real Zero” in industrial operations
Fortescue is pursuing a more ambitious strategy than many industry peers, targeting what it defines as “Real Zero” emissions by 2030, rather than relying on traditional net zero approaches.
This means achieving actual zero carbon emissions in operations, without offsetting mechanisms such as carbon credits.
A central pillar of this strategy is the Pilbara Energy Connect (PEC), an integrated renewable energy network currently under construction in Western Australia. The system will connect operational sites to renewable generation and battery storage, enabling continuous distribution of clean electricity across the Pilbara region.
Once completed, the infrastructure will include:
- Over 620 km of high-voltage transmission lines
- Around 1.2 GW of solar capacity
- More than 600 MW of wind power
- Between 4 and 5 GWh of large-scale battery storage
24/7 mining operations without fossil fuels
By early 2027, Fortescue expects to install 290 MW of renewable capacity to support daytime operations at its Pilbara sites.
The plan is projected to deliver fuel cost savings of nearly $100 million by 2027, alongside reductions in unit operating costs of $2–4 per tonne.
The company’s objective is to enable continuous 24-hour mining operations without fossil fuels by the end of next year, a milestone that would mark a significant shift for heavy industry.
Scaling a replicable model for industrial decarbonisation
Beyond internal decarbonisation, Fortescue aims to demonstrate that renewable energy can compete with fossil fuels at scale, both technically and economically.
The long-term strategy includes commercialising and replicating its off-grid renewable model globally, offering the technology through licensing or as a service to other industrial players.
This initiative forms part of a broader transformation effort across infrastructure, energy systems and operations. The company reports $405 million in investments in decarbonisation projects and is progressively replacing diesel-powered mining equipment with zero-emission alternatives.
However, in 2025 Fortescue also scaled back its ambitions in green hydrogen, cancelling several projects in Australia and the United States, highlighting the complexity of transitioning heavy industry.
