Rio Tinto indicators Australia’s greatest renewable energy deal as it really works to repower its Gladstone operations

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Rio Tinto has signed Australia’s largest renewable energy buy settlement (PPA) up to now to provide its Gladstone operations in Queensland, agreeing to purchase nearly all of electrical energy from Windlab’s deliberate 1.4GW Bungaban wind power undertaking.

The settlement, which follows the announcement final month of a PPA for the Higher Calliope photo voltaic farm in Queensland, will make Rio Tinto the largest industrial purchaser of renewable energy in Australia and is one other main step within the work to repower the corporate’s Gladstone manufacturing belongings — Boyne aluminium smelter, Yarwun alumina refinery and Queensland Alumina refinery.

Underneath the brand new PPA with Windlab, Rio Tinto will purchase 80% of all energy generated from the Bungaban wind power undertaking over 25 years. The undertaking, which is at the moment in early improvement, shall be constructed and operated by Windlab at a website in Queensland about 40 kilometres from the city of Wandoan, and 290 kilometres south-west of Gladstone, topic to improvement and grid connection approvals.

The remaining 20% of the undertaking’s generated electrical energy will provide Australia’s Nationwide Electrical energy Market, delivering clear electrical energy to properties and companies.

The PPA is the second renewable energy deal signed for Rio Tinto’s Gladstone operations, after the latest settlement signed with European Power to drive improvement of the 1.1GW Higher Calliope photo voltaic farm.

As soon as developed, the mixed 2.2GW of renewable PPAs with Windlab and European Power have the potential to decrease carbon emissions by about 5 million tonnes per yr and will generate the equal of 10% of Queensland’s present energy demand.

The Bungaban PPA will deliver extra renewable energy into one in all Australia’s most necessary industrial hubs and marks one other step in the direction of Rio Tinto’s local weather aim of halving its world Scope 1 & 2 carbon emissions this decade. If mixed with extra renewable energy and appropriate firming, transmission, and industrial coverage, the Bungaban and Higher Calliope PPAs might additionally present the core of an answer to repower Rio Tinto’s three Gladstone manufacturing belongings.

Rio Tinto Chief Government Jakob Stausholm stated “This settlement with Windlab builds on our momentum in our work to repower our Gladstone operations and supply a sustainable future for heavy business in Central Queensland.

“The duty stays difficult, however we now have a pathway to supply the aggressive, firmed energy our Gladstone crops want and we’re persevering with to work onerous with all stakeholders, together with the Queensland and Australian governments, on getting there.

“Aggressive capability, firming, and transmission, are crucial to growing a contemporary power system that may guarantee extra large-scale renewables improvement in Queensland and assist assure the way forward for Australian business.”

As soon as accredited, building of the Bungaban undertaking is focused to begin in late 2025 and is anticipated to provide electrical energy by 2029, make use of as much as 600 individuals throughout building and assist as much as 30 everlasting jobs when working.

Windlab CEO John Martin stated “Securing this PPA is a significant milestone for the Bungaban undertaking and a powerful sign of the undertaking’s worth from the market.

“Windlab may be very proud to be partnering with Rio Tinto to assist the long-term sustainable way forward for Rio Tinto’s Gladstone operations.

“This settlement highlights the significance of large-scale renewable power tasks in shoring up Queensland’s powerhouse conventional industries, notably minerals and superior processing, which make use of hundreds of individuals in regional communities throughout the state and have a key function to play in our nation’s low-carbon future.

“Bungaban is a key transition alternative that can create as much as 600 new Queensland building jobs and inject round $500 million into the regional financial system by way of native employment, provide and contracting.

“The undertaking could be responsibly developed, grid related and producing sufficient power to energy the equal of 740,000 Queensland properties by 2029, whereas eliminating about 4 million tonnes of carbon from the state’s era profile yearly.”

Rio Tinto will proceed to have interaction with potential companions to evaluate different proposals to assist competitively meet the power wants of its three manufacturing belongings within the Gladstone area. These belongings require greater than 1GW of dependable energy to function, which equates to over 4GW of high quality wind or solar energy with firming. Potential additional electrification of plant processes might enhance their electrical energy demand sooner or later.