The Australian Renewable Energy Agency (ARENA) has committed up to $45 million in funding to support Fortescue Metals Group’s Solar Innovation Hub in the Pilbara region of Western Australia.
The hub is designed as a 500 megawatt (MW) testing ground for emerging solar photovoltaic (PV) technologies within Fortescue’s broader plan for a 1.5 gigawatt (GW) solar PV development pipeline, aiming to significantly reduce the levelised cost of utility-scale solar and accelerate its large-scale deployment.
The Solar Innovation Hub introduces a novel funding approach by trialling a portfolio of up to 10 individual projects deploying a range of technologies under one agreement.
This structure seeks to cut costs, demonstrate technical and commercial feasibility, and share knowledge across the solar PV and clean technology sectors in Australia.
The focus is on innovations that improve safety, speed up delivery, and drive down costs in the renewable energy landscape.
ARENA CEO Darren Miller highlighted the importance of the project, stating: “Solar PV deployment is evolving as we find new ways to reduce costs, streamline logistics and adapt to challenging environmental conditions.
“These advances are helping to lower the levelised cost of energy (LCOE) and improve commercial viability for the heavy industrial and hard-to-abate sectors.”
He added: “This project also represents a new way for ARENA to provide funding, maximising our impact and fostering collaboration between Australia’s energy innovators.
“By creating a space where cutting-edge technologies can be tested and refined in real-world environments, we’re helping to deliver significant cost reductions as quickly as possible for the benefit of both industry and the climate.”
Fortescue has already initiated two demonstration projects within the hub.
The first, a collaboration with Built Robotics, successfully trialled an automated pile-driving technology at the Cloudbreak Solar Farm, demonstrating how robotics could revolutionise large-scale solar construction.
The second project, in partnership with 5B, plans to test its rapid-deployment Maverick solar technology on-site starting early 2026.
Both projects are integral to Fortescue’s efforts to scale innovative solar technologies across its development pipeline.
Dino Otranto, Fortescue’s Chief Executive Officer for Metals and Operations, expressed the company’s enthusiasm for the partnership with ARENA: “This opportunity to work with ARENA is a strong endorsement of Fortescue’s commitment to pioneering renewable energy solutions at scale.”
He continued: “The Solar Innovation Hub will allow us to trial and refine new technologies that improve safety, speed up delivery and drive down costs – helping us and Australia accelerate the transition to green energy.”
This initiative aligns with ARENA’s Ultra Low-Cost Solar (ULCS) vision, which targets achieving 30 per cent module efficiency at an installed cost of 30 cents per watt by 2030.
Meeting these goals could reduce Australia’s LCOE for solar PV to below $20 per megawatt hour — approximately one-third of the current cost.
ARENA envisions continued research and development that will further reduce costs through 2040 and supports the broader deployment target of 1 terawatt (TW) of installed solar capacity by 2050.
Co-locating the innovations within Fortescue’s Pilbara solar farms offers a unique testing environment to assess various technical approaches under consistent operational and environmental conditions.
The hub is expected to deliver high-value insights on cost drivers, validate emerging technologies, and identify clear pathways for commercialisation, thereby contributing to Australia’s decarbonisation efforts and renewable energy sector growth.
