Fortescue [FMG:AU], one of the world’s leading iron ore miners based in Australia, has entered into a significant renewable power agreement with local electric utilities firm Genex Power[GNX:AU], as reported by Reuters on October 9. According to the deal announced on Monday, Fortescue has committed to securing 337.5 megawatts (MW) of new solar energy for its proposed Gibson Island project in Brisbane. This move is part of Fortescue’s ongoing efforts to meet its renewable energy requirements and transition towards sustainable energy sources.

The agreement between Fortescue and Genex Power involves a renewable power purchase arrangement, wherein Fortescue will procure 337.5 MW of solar energy from Genex. This energy will be sourced from the first stage of Genex’s Bulli Creek Solar Project, located near Queensland. The agreement is, however, subject to certain conditions. Genex must secure funding for the initial phase of its Bulli Creek Solar Project by the end of 2024, while Fortescue needs to make a final investment decision regarding the Gibson Island Project by the end of 2023 for the deal to proceed. This collaboration not only ensures a substantial portion of Fortescue’s energy needs for the Gibson Island project but also contributes significantly to the development of renewable energy infrastructure in the region. Additionally, the partnership between Fortescue and Genex will play a pivotal role in advancing a new renewable energy project in North Queensland.

Sources:

https://www.reuters.com/business/energy/fortescue-secures-initial-renewable-energy-gibson-island-project-2023-10-08/