The Australian Renewable Energy Agency (ARENA) announced an investment of up to $45 million in Fortescue’s Solar Innovation Hub located in the Pilbara region of Western Australia. This funding aims to significantly lower the levelised cost of utility-scale solar energy and expedite its wider adoption. The Hub will act as a test bed for emerging technologies within Fortescue’s ambitious 1.5 GW solar photovoltaic (PV) development pipeline.
The innovative funding model entails the trial of up to 10 individual projects. These projects will utilize various technologies under a single agreement, focused on reducing costs, demonstrating both technical and commercial feasibility, and facilitating knowledge sharing within the solar PV and clean technology sectors.
ARENA’s Chief Executive Officer, Darren Miller, emphasized the significance of the Solar Innovation Hub, calling it a groundbreaking initiative that aligns with ARENA’s Ultra Low-Cost Solar (ULCS) vision. “Solar PV deployment is evolving as we find new ways to reduce costs, streamline logistics, and adapt to challenging environmental conditions,” Miller stated. He noted that these advancements are crucial for decreasing the levelised cost of energy (LCOE) and enhancing the commercial viability of the heavy industrial sector.
Miller highlighted the project as a fresh approach to funding from ARENA, aimed at maximizing impact and fostering collaboration among Australia’s energy innovators. By creating an environment for cutting-edge technologies to be tested and refined in real-world conditions, the initiative seeks to achieve substantial cost reductions for industries and the climate.
Fortescue has already initiated two demonstration projects at the Hub. The first project, in partnership with Built Robotics, successfully tested automated pile-driving technology at the Cloudbreak Solar Farm. This innovation showcases the potential for robotics to revolutionize large-scale solar construction. The second project, in collaboration with 5B, will begin testing its rapid-deployment Maverick solar technology onsite starting in early 2026. Both innovations are currently under evaluation and could be expanded in future stages of Fortescue’s solar development efforts.
The Hub is expected to yield valuable insights into cost drivers, validate multiple innovative technologies, and identify pathways for commercialisation. By co-locating innovations within Fortescue’s Pilbara solar farms, the project provides a unique opportunity to assess and compare different approaches in a single operational and environmental context. The knowledge generated aims to support broader industry initiatives to accelerate solar PV adoption, particularly in challenging environments, while contributing to ARENA’s strategic objectives around innovation and decarbonisation.
Dino Otranto, Fortescue’s Chief Executive Officer for Metals and Operations, described the collaboration with ARENA as a strong endorsement of Fortescue’s commitment to advancing renewable energy solutions at scale. “The Solar Innovation Hub will allow us to trial and refine new technologies that improve safety, speed up delivery, and drive down costs,” Otranto stated, reinforcing the company’s role in Australia’s transition to green energy.
With Australia’s net-zero goals in sight, demand for clean energy is projected to surge rapidly. The Solar Innovation Hub aligns with ARENA’s ambitious ULCS target of achieving 30 percent module efficiency at an installed cost of 30 cents per watt by 2030. If these goals are met, Australia could potentially achieve an LCOE of less than $20 per megawatt hour, representing approximately one-third of the current cost of solar PV.
ARENA is also looking beyond 2030, engaging in research and development activities aimed at further driving cost reductions through to 2040. The ULCS initiative is integral to accelerating the deployment of solar PV, with a goal of reaching 1 terawatt of installed capacity in Australia by 2050.
