Mining giant Rio Tinto announced a new deal with renewable energy firm Edify Energy to supply reliable low-carbon electricity to power aluminum production operations in Queensland, Australia.
Rio Tinto is one of the world’s biggest producers and processors of iron ore, copper, aluminum and a range of other minerals and materials. The company has committed to reduce its operational Scope 1 and 2 emissions by 50% by 2030, and to achieve net zero by 2050.
Under two service agreements, Rio Tinto said that it will purchase 90% of the power and battery storage capacity generated by two solar power stations over 20 years, to help power the Boyne aluminum smelter and two refineries in the Gladstone region. Edify Energy, an Australian renewable energy development and storage investment company, will build, own, and operate the projects.
The agreement is the latest in a series of large-scale clean energy deals by Rio Tinto in Australia, following 2.2 GW of renewable wind and solar PPAs contracted by the company for Gladstone in 2024. Together with the new agreement, the projects will secure a total of 2.7GW of future wind and solar energy for the aluminum operations, the company said, supplying 80% of Boyne smelter’s annual average electricity demand, and reducing the smelter’s scope 1 and 2 emissions by 70%, or 5.6Mt of carbon dioxide equivalent per year.
Rio Tinto Chief Executive, Australia, Kellie Parker said:
“These agreements are integral to repowering our Gladstone aluminum operations with affordable, reliable and lower carbon energy for decades to come. For the first time, we have integrated crucial battery storage in our efforts to make the Boyne aluminum smelter globally cost-competitive, as traditional energy sources become more expensive. We continue to investigate further renewable energy investments to repower our Gladstone aluminum operations.”
Construction of the power stations is due to begin in late 2025, with completion set for 2028. Located in Central Queensland, the Smoky Creek & Guthrie’s Gap stations will together feature 600MWac of solar power and 600MW / 2,400MWh of battery storage, Edify said.
Edify Energy Chief Executive, John Cole, said:
“The Smoky Creek & Guthrie’s Gap Solar Power Stations deliver the latest in solar, battery and inverter technology to support Australia’s power needs. This collaboration is an important commitment to supporting the sustainable future of Australia’s industrial sector. We are proud to advance Rio Tinto’s goals to repower its Gladstone operations and to play a role in the transition to a low-carbon economy.”
