The mining corporation has entered into an agreement to procure electricity from the Upper Calliope Solar Farm for its operations near Gladstone. The solar farm will be constructed and managed by European Energy, once the project receives approval.
Rio Tinto, the mining company, is committed to reducing Scope 1 and Scope 2 carbon emissions globally within this decade. This agreement could potentially initiate a solution to power Rio Tinto's three projects in Gladstone. Moreover, the deal will also enhance the renewable energy presence in this industrial hub, thereby benefiting the Gladstone area as a whole.
"This agreement is a first important step in our work to repower our Gladstone operations and illustrates our commitment to keeping sustainably powered industry in Central Queensland. 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. 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," said Jakob Stausholm, CEO of Rio Tinto in a Jan. 23 news release announcing the agreement.
The three Rio Tinto assets located in the Gladstone area - namely the Boyne aluminium smelter, Yarwun alumina refinery and Queensland Alumina refinery – collectively require over 1 gigawatt of reliable, continuous power for operation. According to a news release dated Jan. 23, construction of the Upper Calliope plant is anticipated to commence between 2025 or 2026 and upon completion will supply enough electricity to meet approximately 5% of Queensland’s current demand.
European Energy Australia is another significant partner involved in this power purchase agreement. The company will take responsibility for building and operating the new plant.
"European Energy is proud to be a strategic partner in this project with Rio Tinto. Our commitment to providing renewable and reliable energy aligns perfectly with Rio Tinto's ambitious climate goals. The Upper Calliope Solar Farm is not just a solar power project; it's a testament to our shared vision for a greener future. By supplying renewable energy to one of Australia's key industrial hubs, we are setting a new standard for industrial energy consumption," stated Erik Andersen, CEO of European Energy, in the Jan. 23 news release.