ARENA will invest up to $45 million in Fortescue’s Solar Innovation Hub in the Pilbara, a program designed to drive down the levelised cost of energy (LCOE) for utility-scale solar and speed up deployment. The Hub will operate as a 500 MW test bed inside Fortescue’s planned 1.5 GW solar PV pipeline.
How the Hub works
Rather than funding a single demonstration, the Hub adopts a portfolio approach—trialling up to ten individual projects under one agreement. The aim is to validate technical and commercial feasibility across multiple technologies while sharing lessons that cut costs and de-risk future roll-outs.
ARENA’s Darren Miller frames the initiative squarely within the Ultra Low-Cost Solar (ULCS) program: reduce LCOE via advances in deployment methods, logistics and adaptation to harsh environments. The Hub is also a test of a new funding model intended to maximise impact and collaboration.
What’s being trialled first
Two early trials are underway at Cloudbreak Solar Farm:
- Automated pile driving with Built Robotics—targeting faster, safer and cheaper construction.
- 5B’s Maverick rapidly deployable arrays—scheduled for onsite testing from early 2026.
If these prove out, Fortescue intends to scale them through later project stages.
Why the Pilbara needs this
Utility solar in the Pilbara faces higher-than-average costs due to remote logistics, complex construction, and demanding operating conditions. These factors elevate LCOE and limit commercial viability. The Hub is structured to isolate key cost drivers and test solutions that can translate to other remote Australian sites.
Evaluation and knowledge sharing
Trials will be milestone-based and assessed for technical performance and economic impact, with reporting obligations to ensure industry knowledge spill-overs. Co-locating innovations on Fortescue’s Pilbara solar farms allows comparative evaluation within a single operational environment, including the potential for stacked or coupled innovations.
Targets and the ULCS pathway
The initiative supports ARENA’s ULCS targets for 2030: 30% module efficiency and installed cost of $0.30/W, which, if achieved, would enable an LCOE below $20/MWh—around one-third of today’s solar PV costs. ARENA is also pursuing R&D to push beyond 2030 and accelerate cost declines through to 2040.
Scale of ambition
ARENA links ULCS to an aspiration of 1 TW of installed solar PV in Australia by 2050. The Hub’s learnings are intended to inform future investment decisions and support faster deployment at scale across challenging contexts.
Fortescue’s position
Fortescue states the Hub will help “trial and refine new technologies that improve safety, speed up delivery and drive down costs,” aligning with its broader plan to deploy 1.5 GW of solar in the Pilbara.
Article adapted from: ARENA announces $45 million for Pilbara Solar Innovation Hub
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Fortescue Solar Innovation Hub
