Rio Tinto flags the potential retirement of the Gladstone power plant as early as March 2029

Rio Tinto has flagged Queensland's largest coal-fired power plant could close six years earlier than expected as its major customer shifts to low emission electricity sources.

NRG Gladstone Power Station.

Mining giant Rio Tinto has announced Queensland’s largest coal-fired power station could close as early as March 2029, six years earlier than scheduled, as its major customer shifts to low emission electricity sources.

It revealed the upcoming early retirement of Gladstone Power Station (GPS) would be in line with the expiry of existing supply and operational arrangements including its majority owned Boyne aluminium smelter in Gladstone – the power station’s biggest customer – which has renewable energy and large-scale battery storage agreements in place to meet demand.

Rio, which has a 42.125 per cent share of the joint venture ownership of Queensland’s largest coal-fired power plant, said the Australian Energy Market Operator had been formally notified of its potential retirement.

No final decision has been made to retire the 1680MW power station, which has operated since 1976, and there is potential to extend its life should market conditions and other factors allow.

The Crisafulli Government has committed $221m in the 2025–26 Budget to commence early works on Powerlink’s Gladstone Project to reinforce the evolving electricity grid and accommodate new generation in Central Queensland.

Aerial view of Gladstone Power Station.

Treasurer and Minister for Energy David Janetzki said Rio has for some time been working on a plan for the closure of the oldest coal-fired power station in the country.

“The Crisafulli Government has been actively working with our government-owned corporations to prepare the network for the eventual closure of Gladstone Power Station,” he said.

“Powerlink is already working to accommodate Gladstone Power Station’s anticipated closure and the Crisafulli Government’s upcoming Energy Roadmap will help facilitate this work.”

Grattan Institute Energy and Climate Change senior fellow Tony Wood said the move was promising with Rio seemingly “way ahead of the game” having worked to secure green power supply for its Boyne smelter beyond 2029.

“It don’t think things are 100 per cent yet but they’re getting pretty close. Everything I’ve seen seems to suggest it’s going in the right direction,” he said.

“When you look at all the things going on with coal-fired power stations this sounds like a good news story.

“There are things that could go wrong but the combination of Rio Tinto, the state government and the federal government working together seems to have gone pretty well.

An aerial image captured of the Gladstone Power Station.

“At the moment I’d say where we’ve got to is a very good position and quite unusual because no one else has achieved what they have done up to now.”

Rio’s notification ensures compliance with the National Electricity Rules to provide notice of closure of electricity generators 3.5 years in advance. Rio said the notice period can be extended at any time.

The miner said its decision will have no immediate impact on GPS operations. Existing power supply contracts, including to Boyne and CS Energy, will remain in place until the scheduled expiry in March 2029.

The Gladstone Power Station employs about 200 people while the Boyne smelter has 1000 employees.

Rio had earlier said the power station would close in 2035 after a deal with the Palaszczuk government and had also made moves to sell its share of the power station.

“The JV participants recognise the contribution of GPS to the Gladstone community and are committed to work with the operator, NRG Gladstone Operating Services, to ensure transparent and timely engagement with employees, contractors and suppliers throughout this process,” Rio said in a statement.

“Between now and March 2029, the JV participants will engage with stakeholders on the energy market and on options for the future use of the site, which will inform the timeline and strategy for retirement of the facility.”

Since 1994, the station has been operated by NRG Gladstone Operating Services on behalf of joint venture participants, which also includes Sunshine State Power, a wholly owned subsidiary of US-based NRG Energy which owns 27.5 per cent and smaller shareholders Southern Cross GPS, Ryowa II GPS and YKK GPS (Queensland).

Gladstone Regional mayor Matt Burnett said the power station has been a foundation of the local economy since 1976 and that Rio has not made a final decision on the power station’s future.

“Gladstone Power Station has powered Queensland industry and supported thousands of local families for nearly five decades,” he said.

“I am looking forward to working with power station operators and the Queensland and federal governments to ensure the Gladstone Power station remains operational beyond the potential closure date of 2029.”

Queensland Conservation Council hailed Rio’s announcement saying it was evidence that heavy industry and the private sector are getting on with the transition to cheaper renewable energy.

QCO director Dave Copeman said they were calling on the Crisafulli Government to stop playing politics, and be upfront with the community by planning for the timely closure of the state’s other ageing coal power stations.

“It’s vital that governments are honest about the need to replace our ageing coal power stations, so that we get the planning right, build enough replacement renewable energy and set up new clean industries to future-proof regional economies.” he said.

“The Premier can’t put his head in the sand any longer. He can’t ignore that the failure to replace our ageing coal power stations is jeopardising regional Queensland communities by failing to plan for the necessary.”

Originally published as Rio Tinto flags the potential retirement of the Gladstone power plant as early as March 2029