Rio Tinto and Edify Energy Partner for Renewable Energy at Gladstone Operations

Gladstone aluminum operations
Gladstone aluminum operations

Rio Tinto and Edify Energy have formed a major partnership to provide renewable energy to Rio Tinto’s Gladstone aluminum operations in Queensland. The goal is to deliver reliable and affordable electricity through solar and battery hybrid services agreements (HSAs). This collaboration will make Rio Tinto’s Boyne aluminum smelter more sustainable and competitive in the global market.

 

Solar and Battery Hybrid Agreement Details

Rio Tinto will purchase 90% of the energy and battery storage capacity from the Smoky Creek and Guthrie’s Gap Solar Power Stations. These projects will provide 600 MWac of solar energy and 600 MW / 2,400 MWh of battery storage. Construction will begin in late 2025 and finish by 2028.

Edify Energy will oversee the construction, ownership, and operation of the solar stations. This step is crucial in repowering the Boyne aluminum smelter with affordable, low-carbon energy.

 

Renewable Energy’s Role in Rio Tinto’s Future

Kellie Parker, Chief Executive of Rio Tinto Australia, emphasized the need for battery storage to maintain the Boyne smelter’s cost-competitiveness. Traditional energy sources are increasing in cost, making renewable energy essential.

Rio Tinto plans further investments in renewable energy to reduce its environmental impact. Combining energy from the Smoky Creek and Guthrie’s Gap projects with 2.2GW of wind and solar PPAs secured for 2024, Rio Tinto will secure a total of 2.7GW of renewable energy for its Gladstone operations.

 

Impact on Emissions and the Queensland Power Grid

These projects will supply 80% of Boyne smelter’s annual electricity demand. Shifting to renewable energy will reduce emissions by 70%, cutting 5.6 million tonnes of CO2 annually. This reduction equals removing about 2 million cars from the road.

Rio Tinto’s 90% share of the battery storage will provide 30% of the firming needed to stabilize renewable energy. The battery system will store energy during low demand and provide power when solar output is low, improving the stability of Queensland’s power grid.

 

Economic Impact and Job Creation

Rio Tinto’s aluminum production in Queensland is vital to the local economy. The company employs over 4,500 people, with more than 3,000 jobs in Gladstone, including 1,000 at the Boyne smelter. This renewable energy initiative supports Rio Tinto’s sustainability goals and boosts economic growth and job creation in the region.

By advancing renewable energy projects, Rio Tinto and Edify Energy are helping decarbonize Australia’s industrial sector. This effort ensures a sustainable future for the country.

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