- Rio Tinto (ASX:RIO) is purchasing all electricity from private entity European Energy and its Upper Calliope Solar Farm, to power its Gladstone operations for 25 years
- The solar is being used to repower three of Rio’s Gladstone production assets, its Boyne aluminium smelter, Yarwun alumina refinery and Queensland Alumina refinery
- Right now the Calliope solar farm is under development, but once commissioned it will generate 1.1GW of solar and supply up to five per cent of QLD’s electricity
- The move is expected to half Rio’s scope 1 & 2 carbon emissions and reduce operating carbon emissions by an estimated 1.8 million tonnes annually
- RIO shares are up 1.06 per cent, trading at $129.16 at 1:21 pm AEDT
Rio Tinto (ASX:RIO) has agreed to buy all electricity from the 1.1GW Upper Calliope Solar Farm to power its Gladstone operations for 25 years in Queensland.
The mining giant announced it would drive the development of Australia’s largest solar power project.
These operations include repowering three of Rio’s Gladstone production assets: its Boyne aluminium smelter, Yarwun alumina refinery, and its Queensland Alumina refinery.
Driving the energy transition
The Calliope solar farm is currently under development, but once commissioned, it can generate 1.1 GW of solar power.
It can also supply up to five per cent of Queensland’s current electricity demand.
According to Rio, the Upper Calliope Solar Farm has the potential to halve its global Scope 1 & 2 carbon emissions over the next 10 years.
Once operational, the plant could reduce Rio’s operating carbon emissions by 1.8 million tonnes annually.
Management comment
Rio Tinto CEO Jakob Stausholm said the agreement marked a “crucial step” in the company’s efforts to transition to sustainable energy sources.
“The task remains challenging, but we have a pathway to provide the competitive, firmed power our Gladstone plants need and we are continuing to work hard with all stakeholders, including the Queensland and Australian governments, on getting there,” he said.
“Competitive capacity, firming, and transmission are critical to developing a modern energy system that can ensure more large-scale renewables development in Queensland and help guarantee the future of Australian industry.
Developments in the meantime
Rio’s solar farm is situated approximately 50 kilometres southwest of Gladstone and is currently awaiting development and grid connection approvals.
Meanwhile, construction of the Upper Calliope plant is anticipated to commence between 2025 and 2026.
The farm is aiming to employ up to 1000 staff and will cover 2400 hectares.
Rio is evaluating additional proposals, solutions, and partnerships to meet the 1GW energy needs of its Gladstone production assets to operate.
RIO shares were up 1.06 per cent, trading at $129.16 at 1:21 pm AEDT.