Australian businessman Andrew Forrest has proposed a $5 billion plan to help Ukraine strengthen its electricity grid ahead of the coming winter, amid ongoing conflict with Russia. The plan involves deploying a battery-driven smart grid combined with small gas reciprocating generators to provide a more resilient power system capable of withstanding attacks, according to letters sent earlier this year to the Norwegian government.
Dr Forrest, founder of the global energy and mining company Fortescue Metals Group, sought support from Norway’s Prime Minister Jonas Gahr Støre and Finance Minister Jens Stoltenberg, advocating for the donation of gas power plants and other assistance. The initiative is aimed at helping Ukraine’s population survive potential power outages amid increased Russian aggression during winter months. It was developed at the invitation of Ukrainian President Volodymyr Zelensky and involved close collaboration with Ukraine’s national transmission operator Ukrenergo and city officials in Kyiv. The proposed smart grid would leverage Fortescue’s experience in operating its Pilbara energy system in Western Australia, which uses batteries and artificial intelligence to maintain continuous power supply with rapid self-healing capabilities after outages.
In official correspondence, Dr Forrest emphasized the urgency of implementing the system before October 31, ahead of the European winter season. While the project’s estimated capital requirement is approximately $5 billion, Fortescue has not committed firm funding. A company spokesperson stated that the figure is an early estimate and any large-scale development would necessitate collaboration with governments, international financial institutions, and other stakeholders. Fortescue continues to evaluate potential projects based on strategic and commercial considerations.
Dr Forrest is also active in supporting Ukraine through his family’s investment group Tattarang and the Minderoo Foundation, which has provided over $40 million in humanitarian aid since the start of the conflict. In June, he announced $2 million in funding to assist Ukrainian agrifood businesses during the Ukraine Recovery Conference in Poland. He serves on President Zelensky’s Advisory Group on Investment Attraction and Economic Development.
Fortescue’s recent financial reports indicate some operational challenges, including a $1.1 billion writedown on its Iron Bridge magnetite mine and difficulties in negotiations with Chinese iron ore buyers. The company expects to increase its iron ore exports this fiscal year and plans to invest up to $450 million in its energy division, with $150 million budgeted for capital expenditure.
It remains unclear whether Norway or other European countries have provided support or if the proposed Ukrainian smart grid will be deployed by the target date. However, Fortescue’s public statements and direct engagement with Ukrainian officials highlight an ongoing effort to bolster Ukraine’s critical infrastructure in the face of persistent threats to its power supply.