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PLS has signed a 20-year power purchase agreement with Fortescue that is expected to lower operating costs, reduce power-related emissions intensity and provide additional power capacity as the Pilgangoora Operation grows, it says.
The agreement will connect Pilgangoora to Fortescue’s Green Grid, supporting the operation’s growing power demand under the P2000 project. Supply from the network will complement the power already generated and stored on site, with backup generation retained to support operational reliability.
Once supply starts, P2000 unit operating costs are expected to reduce by approximately A$15-20/t ($10.5-14/t) compared with the cost base announced at the P2000 Final Investment Decision, further improving Pilgangoora’s long-term cost position.
The agreement also supports PLS’ Pilgangoora Power Strategy. Power-related emissions intensity is expected to reduce by approximately 80% from the Financial Year (FY) 2023 baseline of 0.69 t CO₂-e/MWh to approximately 0.13 t CO₂-e/MWh by FY30.
The new supply comes as Pilgangoora enters its next phase of growth following approval of the P2000 project, which is expected to increase spodumene concentrate production capacity to approximately 2 Mt/y.
Around A$150 million will be invested in the transmission connection and associated power infrastructure from FY27 to FY29. With more than 100 MW of transmission capacity, the connection will support P2000 and provide capacity for potential future growth.
Managing Director and CEO, Dale Henderson, said the agreement would strengthen Pilgangoora’s competitive position as the operation expands.
“We are pleased to partner with Fortescue and become their first external Green Grid customer,” he said. “We commend Fortescue’s leadership in bringing its vision for large-scale, lower-emissions power infrastructure across the Pilbara to life and strongly support the opportunity for shared infrastructure to benefit industry across the region.
“This agreement further strengthens our low-cost position at Pilgangoora, improving our competitiveness and resilience through lithium market cycles. Access to lower-cost, lower-emissions power will deliver further improvements to the economics of our recently approved P2000 expansion, beyond those announced at FID, while providing capacity to support future growth.”
Fortescue Chief Executive Officer, Dino Otranto, said: “We started building the Green Grid for our own operations, but we could see strong demand for cheap, green, reliable power across the Pilbara and an opportunity to supply other customers too.
“This agreement is an important first step and cements our role as an energy supplier. It will help power PLS’ expansion, support economic growth in the region, and create a new, long-term revenue stream for Fortescue.
“PLS is our first customer, with a strong pipeline of others across the Pilbara looking to our Green Grid for greater choice and flexibility in how they source their power.”
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