Rio strikes Australia’s largest clean energy deal


The company will buy 80% of electricity generated at Windlab’s planned 1.4 gigawatt Bungaban wind farm in Queensland, Australia. — Reuters

London: Rio Tinto Group struck Australia’s largest pact for the supply of renewable energy as it aims to decarbonise aluminium assets that account for the largest share of the miner’s direct emissions.

The company will buy 80% of electricity generated at billionaire Andrew Forrest-owned Windlab Pty’s planned 1.4 gigawatt Bungaban wind farm in Queensland, Australia.

Rio will use the pact to power the Boyne aluminium smelter and Yarwun and Queensland alumina refineries, the world’s No. 2 miner said yesterday in a statement.

Rio’s deal with Windlab follows an agreement last month with European Energy A/S for clean power from a solar farm in Queensland state.

“The task remains challenging, but we have a pathway to provide the competitive, firmed power our Gladstone plants need,” Rio Tinto chief executive Jakob Stausholm said in the statement. The Bungaban project is expected to deliver power by 2029.

Aluminium production is energy intensive and regarded as among the hardest-to-abate parts of heavy industry.

Direct emissions from Rio’s operations totalled about 21.1 million tonnes of carbon dioxide equivalent in 2022, according to company filings. — Bloomberg

Follow us on our official WhatsApp channel for breaking news alerts and key updates!
   

Next In Business News

Oil prices fall after Iran attack as market draws down risk premium
China c.bank keeps policy rate unchanged, drains cash from banking system
Ringgit opens easier vs US$ amid Middle East conflict
Foreign investors remain in selling mode on Bursa Malaysia
Middle East conflict: Bank Negara stands ready to ensure orderly market condition
Bursa Malaysia tumbles at open as inflation, Middle East tensions weigh
Trading ideas: Nextgreen Global, IOI, Bahvest, Yinson, SP Setia and Gamuda Land
Race for AI isn’t zero-sum, says Amazon cloud boss
ECB set to cut interest rates in June, says member
India preparing for uptrend in electricity consumption

Others Also Read