Global mining and metals company Rio Tinto today announced it has signed Australia's largest clean energy deal, agreeing to buy the majority of electricity from a 1.4 GW wind power project under development by renewable energy supplier Windlab for power its Gladstone operations in Queensland.
The deal marks the second large-scale renewable power purchase agreement (PPA) for Rio Tinto in recent weeks, following an agreement last month to buy all electricity generated by a 1.1 GW solar project, also aimed at power Gladstone's operations. , which includes the Boyne aluminum smelter, the Yarwun alumina refinery and the Queensland alumina refinery.
According to Rio Tinto, the combined agreements make the company the largest industrial purchaser of renewable energy in Australia and have the potential to reduce the company's carbon emissions by 5 million tonnes per year, supporting its goal of reducing emissions. of Scope 1 and 2 by half by 2030. The combined 2.2 GW of energy contracted under the PPAs could also generate 10% of Queensland's current energy demand.
Rio Tinto chief executive Jakob Stausholm said:
“This agreement with Windlab builds on our momentum in our work to repower our Gladstone operations and deliver a sustainable future for heavy industry in central Queensland. The task remains challenging, but we have a path to delivering the competitive, steady power our Gladstone plants need and we continue to work hard with all stakeholders, including the Queensland and Australian governments, to get there.”
Under the new PPA with Windlab, Rio Tinto will purchase 80% of all energy generated at the Bungaban wind power project over 25 years, with the remaining 20% supplying Australia's National Electricity Market. The project is in early development and subject to development and grid connection approvals. Once approved, construction is expected to begin in late 2025 and electricity production is expected to begin in 2029.
Windlab CEO John Martin said:
“This agreement highlights the importance of large-scale renewable energy projects to support Queensland's powerful traditional industries, especially minerals and advanced processing, which employ thousands of people in regional communities across the state and have a key role to play in the economy low-income population in our country. carbon future.”
