New Funding for Solar Innovation Amidst Grant Repayment Talks
The Federal Government is providing a fresh $45 million in taxpayer funds to support Fortescue's renewable energy trials in the Pilbara, even as it simultaneously negotiates to claw back a separate $45 million grant previously awarded to the iron ore giant. This new funding from the Australian Renewable Energy Agency (ARENA) is earmarked for the development of a Pilbara Solar Innovation Hub.
Focus on Pilbara Solar and Autonomous Technology
The Solar Innovation Hub will operate across the renewable energy infrastructure that Fortescue is building to power its mining operations. One of the initial projects involves a technology trial with Built Robotics, testing "autonomous piling systems" at the partially constructed 190 megawatt Cloudbreak solar farm.
This trial will use modified excavators to autonomously install more than 1200 solar piles. The goal is to boost installation efficiency and overcome labour challenges in the Pilbara's demanding environment. Solar piles are metal posts driven into the ground to form the foundation for solar farm structures.
Fortescue's chief executive of metals, Dino Otranto, stated that the ARENA funding represents a "strong endorsement" of the company's commitment to pioneering large-scale renewable energy solutions. He emphasised that the hub would help trial technologies to improve safety, accelerate project delivery, and reduce costs, ultimately supporting Australia's green energy transition.
Background: The Scrapped Gladstone Hydrogen Project
This new grant comes against the backdrop of ongoing negotiations between the Federal Government and Fortescue regarding the repayment of a previous $45 million grant. That funding was allocated for a now-abandoned plan to construct a green hydrogen gigafactory in Gladstone, Queensland.
Fortescue officially cancelled the Gladstone project in July 2025, after The West Australian revealed its serious doubts in May, which led to the layoff of 90 workers. A spokeswoman for Federal Industry Minister Tim Ayres confirmed last week that the government is "working constructively with Fortescue to finalise repayment arrangements." Meanwhile, the Queensland State Government, which contributed $66 million to the failed venture, has demanded full repayment.
Following the shelving of its green hydrogen production plans earlier this year, Fortescue is now concentrating its green energy efforts on developing solar, wind, and battery storage infrastructure for its mining operations.
