Energy transition powers up at Pilgangoora

9 October 2024

The first delivery of natural gas to Pilbara Minerals’ Pilgangoora Operation arrived last week marking a major milestone in the Company’s medium-term Power Strategy, designed to reduce emissions intensity* and costs.

The delivery follows the expansion of the existing power station on site, including the installation of eight new gas gensets and an LNG storage facility.

The next step of the power station expansion will be the construction of a lithium-ion battery energy storage system, which will support future growth in solar energy.

The increased energy capacity on site supports the additional power required as the P1000 Expansion Project comes online, which is on track to deliver first ore in 2025.

Pilbara Minerals’ Power Strategy, released in December 2023, outlines the Company’s plan to reduce diesel-based thermal generation and increase the use of natural gas and battery energy storage in stage 1. Stages 2 and 3 of the Strategy aim to further increase renewable power generation capacity and enhance energy efficiency measures at the Pilgangoora Operation.

Successful delivery of stage 1 and stage 2 of the Strategy is anticipated to achieve a ~48% reduction in power emissions intensity by 2027 via natural gas and solar power generation initiatives at site, and up to 80% reduction by 2030** should emerging wind power generation opportunities become regionally available, in stage 3.

In FY24, the existing 6MW solar power plant contributed 9.5% of the total electricity produced on site, as a result approximately 3ML of diesel fuel was displaced.

The delivery of this project aligns with Pilbara Minerals’ ambition to become a sustainable battery materials producer, as well as driving ongoing operational cost savings.

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 * Emissions intensity refers to tonnes of Carbon Dioxide equivalent per megawatt hour (tCO2-e/MWh). Total power related emissions increase over time with the expansion of Pilgangoora Operations.

^** Refer to ASX release “Pilbara Minerals’ Power Strategy to reduce emissions intensity and costs” dated 21 December 2023 for further details and supporting information. Unlocking the full potential of the Power Strategy’s contribution to the Company’s net zero ambition will rely on advancements in infrastructure, technology and economics, particularly with respect to emissions-free firming solutions. Power related emissions intensity reductions of up to 80% compared to FY23 are targets only and assume that the Company will implement the 3 staged power strategy as detailed in this release. Stage 3 assumes and is dependent on renewable wind power generation and associated grid infrastructure being developed and becoming available to the Pilgangoora Operation from third parties by 2030.