Major Agreement to Secure Renewable Energy
British-Australian mining corporation Rio Tinto has signed agreements with Edify Energy to enhance its aluminum operations in Queensland, Australia, through renewable energy and battery storage solutions. Under these hybrid services agreements, Rio Tinto will acquire 90% of the electricity and energy storage output from the Smoky Creek and Guthrie’s Gap solar power stations over 20 years.
Situated in Central Queensland, approximately 75km south of Rockhampton and 40km north of Biloela, the two adjacent solar farms will collectively provide 600MWac of solar photovoltaic (PV) capacity alongside a 600MW/2,400MWh battery energy storage system (BESS). Edify Energy is responsible for constructing, owning, and managing the facilities, with construction slated to commence in late 2025 and completion expected by 2028.
Decarbonising Aluminium Production
Rio Tinto’s Australian chief executive, Kellie Parker, highlighted the significance of incorporating battery storage technology for the first time to enhance the competitiveness of the Boyne aluminium smelter. As energy costs from traditional sources continue to rise, the company is actively pursuing renewable energy investments to support its Gladstone-based aluminium operations.
The company operates three key production facilities in Gladstone: the Boyne aluminium smelter, the Yarwun alumina refinery, and the Queensland alumina refinery. These facilities employ around 3,000 workers, including 1,000 at the Boyne smelter alone. The recent agreement, combined with previous renewable energy purchase agreements totaling 2.2GW, will contribute to securing 2.7GW of wind and solar power for Rio Tinto’s Queensland operations.
The secured 2,160MWh battery storage capacity is expected to supply around 30% of the firming capacity needed to transition the Boyne smelter to renewable energy. This energy storage system will ensure a steady supply of electricity during peak demand or when solar generation is low, improving the reliability of Queensland’s power grid.
Commitment to Sustainable Mining and Smelting
Rio Tinto has been increasing its focus on renewable energy to reduce carbon emissions from its mining and smelting activities. Last year, the company announced plans to construct two 5.25MW solar PV plants in the Gove Peninsula, Northern Territory, on leased land within the Gumatj and Rirratjingu communities. These projects were made possible through agreements with the Traditional Owner Groups of the region.
Additionally, Rio Tinto signed a memorandum of understanding (MoU) with the Yindjibarndi Energy Corporation (YEC) to explore the potential development of wind and solar power in Western Australia’s Pilbara region. The agreement aligns with YEC’s Stage 1 plans to establish a 750MW renewable energy project integrating solar, wind, and battery storage technologies.
Other mining companies, including Fortescue in Western Australia and Whitehaven Energy in New South Wales, have also been adopting solar power for their operations. The shift towards renewables reflects the growing commitment of major industry players to reduce carbon footprints and enhance sustainability within the mining sector.
