Rio Tinto is taking another step toward reducing its carbon footprint by partnering with Edify Energy to secure a steady supply of renewable electricity for its aluminum production in Queensland, Australia. The agreement is a response to growing pressure on industrial companies to cut emissions and transition to cleaner energy sources. By integrating solar power with battery storage, Rio Tinto aims to manage rising energy costs while maintaining operational efficiency.
Similar agreements have been announced by Rio Tinto in recent years, including contracts for large-scale wind and solar power purchase agreements (PPAs) in Australia. The company has previously committed to securing renewable energy to support its Gladstone aluminum operations, with earlier projects aimed at reducing reliance on traditional energy sources. The latest deal adds to a series of renewable energy investments intended to meet its emissions reduction goals.
What are the details of the agreement?
Rio Tinto has signed two service agreements with Edify Energy, under which it will acquire 90% of the power and battery storage capacity from two new solar power stations over a 20-year period. These projects will supply electricity to the Boyne aluminum smelter and two nearby refineries. Edify Energy, an Australian renewable energy company, will oversee the construction and operation of the facilities. The agreement builds on Rio Tinto’s earlier deals for 2.2 GW of wind and solar energy, raising the total renewable capacity secured for the region to 2.7 GW.
How will this impact Rio Tinto’s emissions goals?
With this agreement, Rio Tinto expects to meet 80% of the Boyne smelter’s annual electricity demand through renewable sources. This shift will lead to a reduction of 5.6 million metric tons of carbon dioxide equivalent per year, cutting the smelter’s Scope 1 and 2 emissions by 70%. The company has set a broader target of reducing operational emissions by 50% by 2030 and reaching net zero by 2050.
Rio Tinto Chief Executive, Australia, Kellie Parker, stated:
“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 Smoky Creek and Guthrie’s Gap solar power stations is scheduled to commence in late 2025, with completion expected by 2028. Once operational, the combined projects will feature 600 MW of solar power and 600 MW / 2,400 MWh of battery storage to support Rio Tinto’s energy needs in Queensland.
Edify Energy Chief Executive, John Cole, commented on the collaboration:
“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.”
Rio Tinto’s strategy reflects a broader trend among industrial companies investing in renewable energy to meet sustainability targets while managing financial risks associated with volatile fossil fuel prices. The addition of large-scale battery storage marks a shift toward more stable clean energy integration. For aluminum producers, energy reliability is crucial due to the industry’s high electricity consumption. As more mining and metals companies take similar steps, the long-term effect on global emissions and energy markets will depend on the scalability of such initiatives.
