Fortescue Metals Group Ltd. said Oct. 18 that it signed an agreement with Alinta Energy (Australia) Pty. Ltd. to supply the mining company's Chichester Hub iron ore operations in Western Australia with renewable energy.
The Chichester solar-gas hybrid project will consist of building a 60-MW photovoltaic generation facility to power the Christmas Creek and Cloudbreak operations, a 60-kilometer transmission line linking those two operations with Alinta Energy's gas-fired power station, and a 35-MW battery facility. The project is due to be complete in mid-2021.
The project is expected to displace about 100 million liters of diesel used in the existing Christmas Creek and Cloudbreak power stations as it will provide up to 100% of the daytime stationary energy requirements at the Chichester Hub.
This agreement represents another step in the creation of Fortescue's Pilbara Energy Connect project. The company will invest about US$250 million in energy transmission infrastructure to finish integrating the iron ore operations in Pilbara into an efficient energy network.
Meanwhile, Alinta Energy will receive federal funding of A$24.2 million from the Australian Renewable Energy Agency and A$90 million from the Northern Australia Infrastructure Facility upon satisfying standard conditions.