Australia's Fortescue (FMG.AX) will secure 337.5 megawatts (MW) of new solar energy as part of its renewable energy requirements for its proposed Gibson Island project from a unit of local electric utilities firm, Genex Power (GNX.AX), the companies said on Monday.

A unit of the world's fourth-largest iron ore miner inked a renewable power purchase deal with a subsidiary of Genex as Fortescue progresses with the renewable power required for the Brisbane project.

The agreement will also underpin the development of a new renewable energy project in North Queensland, Fortescue said.

The agreement is conditional on Genex securing funding for the first stage of its Bulli Creek Solar Project by the end of 2024 and Fortescue reaching a final investment decision on the Gibson Island Project by the end of 2023.

Genex will supply 337.5 MW of the proposed 450MW required energy generated from the first stage of its Bulli Creek Solar Project near Queensland for over 25 years, it said.

Genex is developing the solar project in partnership with Japanese electricity generation firm Electric Power Development (9513.T).