Iron-ore major Fortescue is accelerating the development of what it says will be the world’s first fully integrated, large-scale green energy grid for heavy industry, as part of its push to eliminate fossil fuels from its Pilbara operations.

The company on Friday confirmed that deployment of the off-grid renewable system is under way, with the project designed to power mining, processing, rail and port infrastructure entirely with green energy.

Fortescue said the system is focused on replacing diesel use across its operations, reducing exposure to fuel price volatility and supply risks.

By early 2027, the company expects to have installed 290 MW of renewable capacity to support daytime “green processing” at its ore facilities. Later that year, it aims to operate its Pilbara operations for continuous 24-hour periods without fossil fuels.

Full completion of the green grid is targeted for 2028, in line with its Real Zero strategy.

At full scale, the Pilbara green grid is expected to include 1.2 GW of solar capacity, more than 600 MW of wind generation and 4 GWh to 5 GWh of battery storage.

The system will operate independently of the national grid, providing round-the-clock power to support large-scale mining operations and associated infrastructure.

Fortescue said the deployment is being delivered within its existing decarbonisation budget, with implementation expected to ramp up over the next two years.

The company expects to realise about $100-million in fossil fuel cost savings by next year, with further reductions in unit operating costs of $2/t to $4/t once the system is fully operational.

Fortescue said the project demonstrates that renewable energy can provide a cost-competitive and reliable alternative to fossil fuels at industrial scale.

The miner intends to commercialise and replicate the green grid model globally, offering the technology through licensing or as a service to other industrial users.

It said the system incorporates proprietary technologies, including AI-driven optimisation and battery integration, and could be deployed more rapidly and at lower cost in future projects.