Pilbara Minerals Ltd (ASX: PLS) shares are out of form on Thursday.
In morning trade, the lithium miner's shares are down 2% to $3.76.
Why are Pilbara Minerals shares falling?
Investors have been selling the company's shares today after broad market weakness offset the release of a positive announcement.
That announcement revealed Pilbara Minerals' medium-term power strategy, which is expected to reduce power-related emissions intensity (tCO2-e/MWh) by up to 80% by 2030, compared to FY 2023 levels.
Management notes that the initiative is aligned with its strategic ambition to become a sustainable battery materials producer, as well as driving ongoing operational cost savings.
In order to achieve its goals, the company has executed two key agreements that will expand onsite power generation at the Pilgangoora Operation and support the transition from diesel to natural gas. This includes the installation of a lithium-ion Battery Energy Storage System (BESS).
Management highlights that stages 1 and 2 are anticipated to deliver material power unit cost reductions for the operation. This is likely to be the case for stage 3, however, it will be dependent on emerging regional wind solutions and infrastructure being developed and becoming available to the operation in the future.
Heading to net zero
Pilbara Minerals' managing director and CEO, Dale Henderson, said:
We are delighted to announce our phased power strategy that further moves us along the path to net zero, supports reduced operating costs and will grow in lock-step with our production expansion needs. This strategy builds on the first phase of installed solar power generation commissioned in late 2022.
Successful delivery of the strategy is anticipated to achieve a ~48% reduction in power emissions intensity by 2027 via our own 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. This also supports our aim to be a leader in the provision of sustainable battery materials.
