Chichester Hub Emissions Reduction Project - Option 1 (Revoked)

The Chichester Hub Emissions Reduction Project - Option 1 (Revoked) was an industrial energy efficiency project located at Fortescue’s Chichester Hub mining operations, approximately 110 kilometers north of Newman in the Pilbara region of Western Australia. Registered in June 2017, the project operated within the boundaries of the Christmas Creek and Cloudbreak iron ore mines. The surrounding region is defined by remote pastoral leases and extensive mining infrastructure, set against a landscape of red earth and rugged ranges.

The project was originally registered under the Carbon Credits (Carbon Farming Initiative, Industrial Electricity and Fuel Efficiency) Methodology Determination 2015. This methodology is designed to credit activities that reduce emissions from industrial equipment, such as upgrading generators, improving control systems, or switching to less carbon-intensive fuel sources. Specifically, this project sought to improve energy efficiency by modifying the energy mix used by existing power-consuming equipment, likely targeting the significant diesel consumption required for off-grid mining operations.

The environmental conditions at the Chichester Hub are typical of the Pilbara's semi-arid to arid tropical climate. The area receives highly variable rainfall, averaging around 300mm annually, which mostly falls during summer cyclonic events. The soils are characteristically iron-rich, red stony loams and sands (Kandosols) that support Spinifex (Triodia) hummock grasslands and scattered Acacia shrublands.

On April 22, 2021, the project was voluntarily revoked under section 30 of the CFI Rule. This revocation occurred shortly before the completion of Fortescue’s major "Chichester Solar Gas Hybrid Project" in late 2021. This massive infrastructure upgrade integrated 60 megawatts of solar power and a new transmission line connecting the mines to the Newman gas-fired power station, displacing approximately 100 million liters of diesel annually. It is highly probable that the "Option 1" carbon project was a precursor or an early phase of this decarbonization strategy, which was ultimately superseded by the larger-scale renewable integration or restructured under a different framework.