Australia’s push toward ultra low-cost solar has taken a step forward, with the Australian Renewable Energy Agency (ARENA) committing up to $45 million to Fortescue’s new Solar Innovation Hub in the Pilbara region of Western Australia. Designed as a large-scale test bed for emerging technologies, the Hub aims to reduce the levelised cost of energy (LCOE) for utility-scale solar while fast-tracking commercial deployment across some of the country’s most challenging operating environments.
Located within Fortescue’s operational footprint, the Hub will support trials of up to ten individual projects under a single, portfolio-based funding agreement. At full scale, it will function as a 500 megawatt (MW) proving ground for technologies that can feed into Fortescue’s broader 1.5 gigawatt (GW) solar development pipeline.
Darren Miller, Chief Executive Officer at ARENA, said the initiative represents a major shift in how innovation funding can be deployed at speed and scale.
“Solar PV (photovoltaic) 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.
“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.”
Early trials underway
Two demonstration projects have already been launched within the Hub. The first, delivered in partnership with Built Robotics, trialled autonomous pile-driving technology at Fortescue’s Cloudbreak Solar Farm. This test demonstrated the potential for robotics to speed up construction and reduce labour-intensive tasks.
The second project, delivered with Australian manufacturer 5B, will test the company’s rapid-deployment Maverick solar array onsite from early 2026. Both technologies are being evaluated under real Pilbara conditions and, if successful, will be scaled across future stages of Fortescue’s solar build-out.
Dino Otranto, Chief Executive Officer at Fortescue Metals and Operations, said the partnership underscores the company’s commitment to large-scale renewable energy deployment.
“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.”
Towards ultra low-cost solar
Beyond individual technology trials, the Hub will generate system-level insights into cost drivers, performance, logistics, and construction models. Co-locating innovations across the Pilbara, an environment known for heat, dust and remoteness, provides a rare opportunity to evaluate high-impact approaches side-by-side.
The initiative directly supports ARENA’s Ultra Low-Cost Solar (ULCS) target of achieving 30 per cent module efficiency and an installed cost of 30 cents per watt by 2030. If met, Australia could reach an unprecedented solar LCOE of less than $20/megawatt-hour (MWh), which is around one-third of today’s cost.
ARENA is also looking further ahead, exploring research and development pathways that could drive even deeper cost reductions through to 2040 and support the long-term goal of installing one terawatt of solar PV nationwide by 2050.