Rio Tinto to buy all power generated by Upper Calliope Solar Farm

A mining giant with three major assets in Central Queensland has signed an agreement to buy power from Australia’s largest solar project.

Rio Tinto has signed a new agreement with European Energy Australia to buy all electricity from the 1.1GW Upper Calliope Solar Farm.

Mining giant Rio Tinto will drive the development of Australia’s largest solar power project after agreeing to buy all electricity from the infrastructure.

The company recently signed a power purchase agreement with European Energy Australia to buy all the power generated from the Upper Calliope Solar Farm for 25 years, subject to development and grid connection approvals.

Construction is expected to start on the project in 2025 or 2026 if approved, with construction expected to take about two years.

The agreement between the companies will bring more renewable power into one of Australia’s crucial industrial hubs and also is another step towards Rio Tinto’s climate goal of halving its scope one and two carbon emissions this decade.

If combined with more renewable power and suitable firming, transmission and industrial policy, it could also provide the core of a solution to repower Rio Tinto’s three Gladstone assets - the Boyne Aluminium Smelter, the Yarwun Alumina Refinery and the Queensland Alumina Refinery.

If approved, construction on the 1.1GW solar project will provide enough electricity to meet five per cent of Queensland’s current demand.

Rio Tinto chief executive Jakob Stausholm said the agreement was a “first important step” in the company’s work to repower their Gladstone operations and demonstrated their 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,” 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.”

European Energy CEO Erik Andersen said the Upper Calliope Solar Farm was not just a solar power project, but a testament to both theirs and Rio Tinto’s 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. This project underlines our dedication to driving the transition towards renewable energy in Australia and demonstrates the potential of solar power in transforming the energy landscape of the region,” he said.

“We look forward to continuing our collaboration with Rio Tinto and other stakeholders to create a sustainable and energy-efficient future for Australia.”