Rio Tinto Signs Deal For Renewable Power in Queensland

Rio Tinto has signed a major 20-year deal with Edify Energy to buy 90% of the electricity from the company's new solar and battery initiatives in Queensland. The historic agreement is expected to give Rio Tinto's Gladstone aluminium operations access to a renewable, reliable, and affordable source of energy. The new battery and solar storage projects will provide a combined 600 megawatts (MW) of solar power capacity and 2,400 megawatt-hours (MWh) of battery storage, which is a significant milestone in Rio Tinto's journey towards sustainability.

This deal comes within Rio Tinto's overall intention to decrease its carbon emissions and meet its aim of halving emissions from its aluminium business by 70%. The agreement will aid the business in maintaining a long-term solution to power its Gladstone aluminium operations with low-carbon power. This is not just decreasing emissions substantially but also securing the future energy supplies of Rio Tinto on competitive and dependable prices for generations.

Kellie Parker, Rio Tinto's Chief Executive Australia, stressed the strategic significance of the deal. She pointed out the contribution made by battery storage to making possible the company's sustainability and energy security commitment. "These deals are key to repowering our Gladstone aluminium business with affordable, reliable and lower carbon power for decades ahead," she stated. Parker also emphasized that the addition of battery storage for the first time would be an important factor in making the Boyne aluminium smelter competitive internationally, particularly with conventional sources of energy remaining increasingly expensive.

Edify Energy CEO John Cole also explained the importance of the partnership as a milestone to backing Australia's shift to renewables. "The Smoky Creek & Guthrie's Gap Solar Power Stations introduce the best available solar, battery and inverter technology to ensure Australia's power needs," he explained. "This partnership is a serious pledge to ensuring Australia's industrial base has a sustainable future."

Under the new hybrid services contracts (HSAs), Rio Tinto will receive most of its electricity and battery storage capacity from Edify's Smoky Creek and Guthrie's Gap Solar Power Stations. The two solar power stations, which are scheduled to start construction in late 2025, will supply a combined 600MW of solar power and 600MW of battery storage, providing a combined 2,400MWh of energy storage. The projects are expected for completion in 2028.

Once up and running, the solar power plants will provide about 80% of the Boyne smelter's average yearly electricity requirement. This transition to renewable energy will lower the smelter's Scope 1 and 2 emissions by about 70%, the equivalent of reducing around 5.6 million tonnes of CO2 emissions each year. That is the same as taking close to 2 million internal combustion engine vehicles off the road, further highlighting the environmental footprint of the project.

Apart from lowering emissions, the battery storage aspect of the agreement will provide grid stability and resilience, especially during peak demand hours. Rio Tinto's portion of the battery capacity, which stands at 2,160MWh, will supply 30% of the necessary firming of renewable power for the Boyne smelter, allowing the facility to run smoothly even when solar power output varies.

This deal forms part of Rio Tinto's larger journey towards going green through renewable energy for all its operations. Together with other renewable energy projects already underway, the new HSAs will bring Rio Tinto's contracted renewable capacity in Queensland to 2.7 gigawatts (GW). This consists of several projects that target growing renewable energy production for Rio Tinto's Australian business, including its aluminium business in Gladstone.

Rio Tinto's aluminium business, and especially the Boyne smelter, are a crucial component of Queensland's economy, employing directly in excess of 4,500 people. Of these, in excess of 3,000 jobs are in Gladstone, and 1,000 at the Boyne smelter itself. The investments being made by the company in renewable energy infrastructure will not only minimize its footprint on the environment but also underpin the long-term stability and growth of Queensland's industrial base.

In short, the deal between Rio Tinto and Edify Energy is a major leap in the quest for sustainable energy solutions for industrial processes. By locking in a long-term, renewable energy supply for its Gladstone aluminium business, Rio Tinto is making a bold move to lower its carbon footprint, contribute to grid stability, and secure the future competitiveness of its smelting business. The partnership is an emphatic show of how businesses can join together to bring about the energy transition and emissions reductions, with sustainable long-term benefits for the environment and economy.