Pongamia seed oil: Rio Tinto announce pilot project south of Townsville

One of the world’s largest mining companies has made a bold move, confirming it is purchasing 3000ha of land south of Townsville to kickstart a new biofuels pilot project.

Rio Tinto Chief Decarbonisation Officer Jonathon McCarthy stands among Pongamia trees. The company is developing 3000ha of Pongamia seed farms in North Queensland for a biofuels pilot to explore renewable diesel as a cleaner alternative to fossil fuels. Picture: Supplied.

One of the world’s largest metals and mining companies has confirmed that it is in the final stages of buying 3000 hectares of cleared land south of Townsville as part of a new biofuels pilot project.

Rio Tinto said the project would explore the potential of Pongamia seed oil as a feedstock for renewable diesel, which was a “cleaner alternative to traditional fossil fuels.”

Though the exact location of the pilot is yet to be confirmed, it’s expected to be somewhere between Inkerman and Bowen.

The multinational company said it had partnered with Midway Limited, which would oversee the planting and management of the Pongamia seed farms.

Rio Tinto is transitioning its haul truck fleets to battery-electric power and exploring biofuels for operations where electrification isn’t feasible. In 2023, its Boron mine in California became the first open-pit mine to fully switch to renewable diesel, with its Utah copper operation set to follow in 2024. Picture: Supplied.

Pongamia (Millettia pinnata), a legume tree native to Australia, is fast-growing, resilient and produces oil-rich seeds that can be processed into renewable diesel, offering a reduction in life-cycle carbon emissions compared to fossil fuels.

Rio Tinto said Midway, Australia’s largest wood-fibre processor and exporter, would engage with nurseries, agricultural experts and research organisations throughout the pilot, “and prioritise opportunities for traditional owners and local communities”.

Mr McCarthy with workers at Rio Tinto’s research facility outside Brisbane. Pongamia seed can be harvested annually, leaving the trees and soil intact to store carbon dioxide. Picture: Supplied

Rio Tinto chief decarbonisation officer Jonathon McCarthy said diesel accounted for about 10 per cent of its emissions footprint in Australia.

He said the company was transitioning its heavy machinery to renewable diesel.

“While we continue to pursue electrification as the long-term solution for displacing the majority of our diesel use, the Pongamia seed pilot is an important parallel pathway that could reduce our reliance on diesel in the midterm,” he said.

“It also presents a compelling option for other applications that are challenging to electrify, including blasting and non-haul equipment.”

Pongamia (Millettia pinnata), a legume tree native to Australia, is fast-growing, resilient and produces oil-rich seeds that can be processed into renewable diesel, which offers a significant reduction in life-cycle carbon emissions compared to fossil fuel diesel. Picture: Supplied

Mr McCarthy said Australia did not have a biofuel feedstock industry that could meet domestic demand.

“A sustainable biofuels industry here could enhance the region’s fuel security, create local economic opportunities, and contribute to emissions reductions targets,” he said.

“We are excited about the potential of the Pongamia seed pilot and look forward to partnering with Midway Limited and North Queensland communities.”

Midway Limited managing director Tony McKenna said it was proud to be “playing an important role in helping develop a sustainable domestic biofuel industry”.

“The collaboration continues the growth of our position as trusted providers with the capability and experience to deliver a variety of projects for emitters who are committed to seeking alternative solutions to reduce their net emissions.”

Originally published as Pongamia seed oil: Rio Tinto announce pilot project south of Townsville