Fortescue says electric haul trucks already match diesel on cost and will save money in drive to real zero

Fortescue Metals CEO Dino Otranto says the giant electric haul trucks the iron ore giant will use to replace its fossil fuelled trucking fleet are “diesel equivalent options now,” that will save the company money while also driving its decarbonisation efforts.

Fortescue published its quarterly production report on Thursday, which also recapped the latest progress towards the company’s ambitious decarbonisation’s goal of of reaching “real zero” emissions by 2030. 

Over the past quarter, this has included bringing 10 electric excavators into the operational mix and ongoing construction of the 190MW Cloudbreak solar farm in Western Australia’s Pilbara region, which is now one-third complete.

Settling on zero emissions alternatives for the 240-tonne haul trucks that are key to Fortescue’s mining operations has been a more complicated affair.

But, as Otranto told Renew Economy’s Energy Insiders Podcast last week, the company is now in a position, with two different suppliers, Liebherr and XCMG, to take its first deliveries in 2026.

“We reached important milestones this quarter, including the successful syndication of a Renminbi-denominated term loan and the establishment of new global partnerships that will help drive our profitable decarbonisation,” Otranto said on Thursday.

Fortescue recently signed technology partnership deals with battery maker BYD, solar company Longi, XCMG, wind manufacturer Envision Energy and Liebherr, and bought out the remainder of the Spanish wind technology provider Nabrawind.

The Q&A session with analysts and investors on Thursday morning focused largely on the company’s core business – the digging up, processing and shipping of iron ore – but a question on Fortescue’s $6.2 billion decarbonisation budget drew an animated response.

“We’re on track for that,” Otranto told the call. “But I think what’s important for the market to realise is, if you then look at the capital, let’s say per tonne of dirt moved … what we’re landing on is pretty exciting.

“I’d encourage anybody on the call and any of our competitors to look what we’re doing with Liebherr and XCMG.

“These are diesel equivalent options now,” he added. “We’re not doing this because we don’t think our total cost of ownership is going to be less. Of course, we’re doing it because of that.”

Fortescue earlier this week unveiled a new two gigawatt wind project near its Pilbara mines that will help decarbonise its operations and supply clean power for the electric trucks and excavators and other mining equipment.

The new wind farm, which will feature Envision turbines and Nabrawind’s “self lifting” technology, will mostly be sited on the Bonney Downs pastoral lease, but some of its transmission infrastructure is set down for the Roy Hill pastoral lease held by Gina Rinehart, meaning permission will be required from the rival billionaire.

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