ARENA invests $45 million in Fortescue’s Pilbara Solar Innovation Hub

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Image credit: ARENA

The Australian Renewable Energy Agency (ARENA) has announced up to $45 million in funding for Fortescue’s Solar Innovation Hub in the Pilbara region of Western Australia, aimed at lowering the cost of large-scale solar and accelerating the deployment of clean energy technologies across the country.

According to ARENA, the Solar Innovation Hub will operate as a 500-megawatt test bed for new technologies within Fortescue’s planned 1.5-gigawatt solar PV development pipeline. 

In a news release, the agency said the initiative introduces a new funding model that will support a portfolio of up to 10 projects under a single agreement, testing a range of technologies to improve efficiency, cut costs, and share findings across the renewable energy sector.

ARENA CEO Darren Miller said the Hub marks an important step in the agency’s efforts to advance its Ultra Low-Cost Solar (ULCS) vision, which targets major cost reductions in utility-scale solar power.

“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 and improve commercial viability for the heavy industrial and hard to abate sectors,” Miller said.

He added that the initiative also reflects ARENA’s commitment to driving collaboration and innovation within Australia’s clean energy ecosystem. 

“This project represents a new way for ARENA to provide funding, maximising our impact and fostering collaboration between Australia’s energy innovators,” Miller said. 

“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.”

According to ARENA, Fortescue has already commenced two demonstration projects within the Hub. The first, in partnership with Built Robotics, trialled automated pile-driving technology at the Cloudbreak Solar Farm, demonstrating the potential role of robotics in improving efficiency and safety in large-scale solar construction. 

The agency noted the second project, with solar company 5B, will test its rapid-deployment Maverick technology at the same site starting in early 2026.

Fortescue Chief Executive Officer Metals and Operations Dino Otranto said the partnership with ARENA underscores Fortescue’s focus on renewable energy innovation.

“This opportunity to work with ARENA is a strong endorsement of Fortescue’s commitment to pioneering renewable energy solutions at scale,” Otranto said. 

“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.”

ARENA said the Hub is expected to generate valuable insights into solar cost drivers, assess multiple new technologies in real-world conditions, and identify pathways toward commercialisation. 

By co-locating projects within Fortescue’s Pilbara solar farms, the initiative will enable comparisons between different innovations in a consistent operational environment, according to the agency. 

ARENA said the project supports its broader ULCS target of achieving 30 per cent module efficiency at an installed cost of 30 cents per watt by 2030. 

Beyond 2030, ARENA said it continues to invest in research and development initiatives aimed at further cost reductions and advancing Australia’s progress toward its net zero emissions targets, including its longer-term ambition to reach 1 terawatt of installed solar capacity by 2050.

Further details about the Solar Innovation Hub are available on ARENA’s website.