{"id":"pls-fortescue-twenty-year-power-agreement-oct28-2026","canonicalSlug":"pls-fortescue-twenty-year-power-agreement-oct28-2026","url":"https://wellficent.com/en/news/pls-fortescue-twenty-year-power-agreement-oct28-2026","language":"en","title":"PLS signs 20-year Fortescue electricity agreement for Pilgangoora","summary":"The contract commits at least 325 GWh annually, with supply targeted to begin in 2029.","body":["PLS Group announced on 28 October that its Pilgangoora operating subsidiary had signed a 20-year power purchase agreement with FMG Clean Energy, a Fortescue subsidiary. The agreement provides a committed minimum of 325 gigawatt-hours of electricity per year for the Western Australian lithium operation, with commencement targeted for calendar 2029.","The planned connection will link Pilgangoora to Fortescue’s Turner River solar farm and 220-kilovolt substation through a new transmission line of approximately 25 kilometres. PLS will fund and own about 20 kilometres of that line, alongside a new receiving substation and upgrades to on-site distribution. The connection is sized above 100 megawatts.","PLS expects to invest approximately A$150 million in connection and power infrastructure across financial years 2027–2029. It forecasts a reduction of A$15–20 per tonne in FOB unit operating costs compared with the recently announced ten-year-average P2000 cost assumptions. This is a future cost estimate, not a saving already recorded in current-quarter results.","The arrangement is intended to support the P2000 operating model and leave capacity for possible later growth, including underground mining and fleet electrification. Pilgangoora will retain a mix of grid supply and existing generation. The agreement increases future access to renewable electricity, but the release does not establish that the entire operation will immediately run exclusively on renewable power."],"keyPoints":[],"sections":[],"text":"PLS signs 20-year Fortescue electricity agreement for Pilgangoora\n\nThe contract commits at least 325 GWh annually, with supply targeted to begin in 2029.\n\nPLS Group announced on 28 October that its Pilgangoora operating subsidiary had signed a 20-year power purchase agreement with FMG Clean Energy, a Fortescue subsidiary. The agreement provides a committed minimum of 325 gigawatt-hours of electricity per year for the Western Australian lithium operation, with commencement targeted for calendar 2029.\n\nThe planned connection will link Pilgangoora to Fortescue’s Turner River solar farm and 220-kilovolt substation through a new transmission line of approximately 25 kilometres. PLS will fund and own about 20 kilometres of that line, alongside a new receiving substation and upgrades to on-site distribution. The connection is sized above 100 megawatts.\n\nPLS expects to invest approximately A$150 million in connection and power infrastructure across financial years 2027–2029. It forecasts a reduction of A$15–20 per tonne in FOB unit operating costs compared with the recently announced ten-year-average P2000 cost assumptions. This is a future cost estimate, not a saving already recorded in current-quarter results.\n\nThe arrangement is intended to support the P2000 operating model and leave capacity for possible later growth, including underground mining and fleet electrification. Pilgangoora will retain a mix of grid supply and existing generation. The agreement increases future access to renewable electricity, but the release does not establish that the entire operation will immediately run exclusively on renewable power.","category":"energy","region":"world","topics":["power","mining"],"eventDate":"2026-10-28","eventDateBasis":"source-event-or-period","publishedAt":"2026-10-28T16:26:01Z","modifiedAt":"2026-10-28T16:26:01Z","publicationBasis":"first-publication","preparedAt":"2026-10-28T16:25:41Z","sourcePublishedAt":"2026-10-28","translatedAt":null,"sources":[{"url":"https://asx.api.markitdigital.com/asx-research/1.0/file/2924-03153964-6A1351812","name":"PLS Group","checkedAt":"2026-10-28","publishedAt":"2026-10-28"}],"translations":{"en":"https://wellficent.com/en/news/pls-fortescue-twenty-year-power-agreement-oct28-2026","tr":"https://wellficent.com/tr/news/pls-fortescue-twenty-year-power-agreement-oct28-2026","ar":"https://wellficent.com/ar/news/pls-fortescue-twenty-year-power-agreement-oct28-2026","fr":"https://wellficent.com/fr/news/pls-fortescue-twenty-year-power-agreement-oct28-2026","es":"https://wellficent.com/es/news/pls-fortescue-twenty-year-power-agreement-oct28-2026","ru":"https://wellficent.com/ru/news/pls-fortescue-twenty-year-power-agreement-oct28-2026","pt":"https://wellficent.com/pt/news/pls-fortescue-twenty-year-power-agreement-oct28-2026"},"corrections":[],"locations":[],"type":"news","classification":{"version":"1","dataKinds":["contract-award"],"geographies":[{"role":"economic-scope","countryCode":"AU","subdivisionCode":null}],"evidenceBasis":["agreement","plan"],"measurementPeriod":null}}