An analysis of current energy demand in the Pilbara and the need to accelerate electrification and decarbonisation in the region. The report finds that rapid deployment of renewables projects in the Pilbara should be a strategic policy and investment priority for industry, government, regulatory and investment stakeholders and provides recommendations for each. 

The report addresses the necessary preconditions to achieving ambitious national goals arising from the global clean energy transition, identifying essential actions government can implement as well as opportunities to facilitate co-investment and collaboration between resource majors and global sector leaders. 

Key findings

• The Pilbara region in Western Australia (WA) underpins Australia’s economic strength
• To power their mobile equipment operations in the Pilbara, the mining majors rely heavily on fossil gas
• Common-user electricity infrastructure in the Pilbara would enable multiple stakeholders to efficiently and cost-effectively electrify and decarbonise their operations
• Australia has the potential and scale to dominate in green iron, but, without timely action on energy supply decarbonisation, risks forgoing this once-in-a-century opportunity.

Key recommendations include

• Centre social licence and First Nations equity participation in the decarbonisation of the Pilbara by prioritising close consultation and agreement with First Nations peoples
•  Australia and the WA Government must accelerate approval processes and procedures if we are to achieve our national emissions reduction requirements under the Paris Agreement and renewable energy targets

For the Federal Government

• Urgently prioritise Western Australia’s Pilbara region for strategic national-interest public investment
• Work with the Western Australian government to urgently deploy the $3bn Clean Energy Finance Corporation (CEFC) concessional financing
• Cap the federal Fuel Tax Credit Scheme
• Strongly advocate for an international green premium price signal for trade in decarbonised products

For the WA Government

• Prioritise the development of a comprehensive single CommonUser Grid Infrastructure Plan
• Legislate WA’s Climate Change Bill 2023

For Pilbara mining & energy majors

• Invest into accelerated decarbonisation plans in their Pilbara operations tied to science-aligned emissions targets
• Demand greater climate and energy policy ambition from the WA Government