ASX-listed Fortescue has garnered board approval to expand its green energy capacity in the Pilbara region of Australia, with $680-million worth of investment planned to develop new green energy infrastructure.

This will position the company to meet growing demand for green power for applications such as data centres.

Fortescue confirms it will accelerate development of the 200 MW Pilbara Green Energy project to deliver additional renewable energy beyond what is required for the company's Real Zero by 2030 strategy.

The new investment is in addition to a previously board-approved initiative worth $6.2-billion to decarbonise the group's operations.

Fortescue will deliver a fully integrated, off-grid renewable energy system and large-scale battery storage and firming capability.

The project is anticipated to be completed by 2028, with a pathway to multi-gigawatt expansion beyond 2030.

Amid ongoing instability in global energy markets and continued reliance on fossil fuels, Fortescue is demonstrating a proven pathway to energy independence, enabling total control of costs and energy supply. 

Fortescue’s previously announced Green Grid is the backbone of its Real Zero Target and, by 2028, will comprise 1.2 GW of solar, 600 MW of wind, about 5GWh of battery storage, along with 620 km of transmission lines. "It is an independently operated, replicable system designed to deliver reliable, firmed power at scale," the company states.

The same capital discipline and project execution capability from Fortescue’s decarbonisation efforts will be applied to the new Pilbara Green Energy Project.

Fortescue is engaging with interested parties and will develop this project with key partners, including government and traditional custodians.

Fortescue executive chairperson Dr Andrew Forrest says Fortescue is already demonstrating in the Pilbara that heavy industry can operate on a fully integrated renewable grid – eliminating fossil fuels while improving cost, reliability and control.

“We are now extending this model to new customers, particularly data centres, helping meet one of the fastest growing sources of demand in the world. 

“This is about replicating our Decarbonisation Green Grid, delivering new green electrons at a scale and speed to market not able to be replicated by fossil fuel.

“It enables a pathway for new industries to operate fossil fuel free, cheaper and faster than traditional alternatives.

Meanwhile, Fortescue reported record quarterly iron-ore shipments totalling 48.4-million tons in the quarter ended March 31, which marked a 5% increase year-on-year. The reporting quarter is the third in the company's financial year.

This was despite lower-than-expected figures as a result of cyclones having hit Australia in recent weeks. The company remains on track to ship between 195-million and 205-million tons of iron-ore in the full year.