Rio Tinto and Edify Energy deal expected to provide 80 per cent of power

Rio Tinto expects renewable energy projects to provide 80 per cent of the power required for its aluminium operations in Central Qld by 2028.

Rio Tinto Chief Executive Jakob Stausholm, during a visit to the Boyne Aluminium smelter at Gladstone in 2023. Stausholm spoke to workers about the companies plans to use solar in transitioning from coal. Pic Lyndon Mechielsen

Rio Tinto expects renewable energy projects to provide 80 per cent of the power required for its Boyne Smelter in Gladstone by 2028 following agreements signed with two new solar and battery hybrid projects in Central Queensland.

Rio Tinto Chief Executive, Australia, Kellie Parker said in a statement the deal with Edify Energy will increase the supply of reliable, competitively priced electricity to Rio Tinto’s Gladstone aluminium operations “for decades to come”.

“For the first time, we have integrated crucial battery storage in our efforts to make the Boyne aluminium smelter globally cost-competitive, as traditional energy sources become more expensive,” the March 13 statement read.

“We continue to investigate further renewable energy investments to repower our Gladstone aluminium operations.”

Gladstone Mayor Matt Burnett behind a stack of aluminium ingots at the Rio Tinto Boyne smelter.

The company’s operations in Gladstone alone account for more than 3000 jobs, with 1000 of those at the Boyne smelter while its bauxite operations in Weipa employ more than 1300 people, supplying raw materials to the Gladstone manufacturing facilities.

The Edify Energy agreement comes after Labor’s election pledge in January to provide $2 billion towards converting Australia’s four aluminium smelters to renewable electricity with a 10-year production credit designed to turbocharge the shift to green, low-carbon aluminium.

Prime Minister Anthony Albanese said the smelters would receive government support for each metric ton of low-carbon aluminium they produce in the decade to 2036.

He said converting to green energy was vital for securing long-term jobs in the face of global competition.

Prime Minister Anthony Albanese on a tour of the Boyne Smelter, Queensland, Australia.

Ms Parker praised the initiative.

“As traditional energy sources for heavy industry become increasingly uncompetitive, (the) announcement is a critical piece in helping future-proof the industry,” Ms Parker said at the time.

Rio Tinto says its integrated aluminium production chain in Queensland is a major economic driver for the nation, employing over 4500 people directly and supporting thousands more jobs.

Rio said under the new agreements with Edify, it will purchase 90 per cent of the power and battery storage capacity generated by the Smoky Creek and Guthrie’s Gap Solar Power Stations for 20 years.

Edify Energy will build, own, and operate the Central Queensland located projects, with construction due to begin in late 2025 and completion set for 2028 packing 600MWac1 of solar and 600MW / 2,400MWh of battery storage.

Located 75km south of Rockhampton and 40km north of Biloela on the traditional lands of the Gaangalu Nation people the Smoky Creek and Guthrie’s Gap Solar Power Station is currently in the development phase.

Rio Tinto’s Jakob Stausholm during a visit to the Boyne Aluminium smelter at Gladstone in 2023. Pic Lyndon Mechielsen

Rio says that when combined with the 2.2GW of renewable wind and solar PPAs announced for its Gladstone operations in 2024, the Smoky Creek and Guthrie’s Gap agreements will help secure a total of 2.7GW2 of future wind and solar energy in Queensland.

Together, the four contracted projects are expected to supply 80 per cent of Boyne smelter’s annual average electricity demand, reducing the smelter’s scope 1 and 2 emissions by 70 per cent, or 5.6Mt of carbon dioxide equivalent per year or the equivalent of removing about 2 million internal combustion engine cars from the road.

Ms Parker said Rio would continue to investigate further renewable energy investments to repower our its Gladstone aluminium operations.

Edify Energy Chief Executive, John Cole, said the new projects would deliver the latest in solar, battery and inverter technology.

“This collaboration is an important commitment to supporting the sustainable future of Australia’s industrial sector. We are proud to advance Rio Tinto’s goals to repower its Gladstone operations and to play a role in the transition to a low-carbon economy,” he said.

Rio Tinto’s share of the Smoky Creek and Guthrie’s Gap battery system capacity amounts to 2,160MWh, which will provide about 30 per cent of the firming required to repower the Boyne smelter with renewable energy.

He said it will store green energy for reliable use during peak demand periods or low solar output, which will improve stability and resilience of Queensland’s power network.

Rio Tinto’s three production assets in the Gladstone region are the Boyne aluminium smelter, the Yarwun alumina refinery and the Queensland alumina refinery.

In January, Federal Opposition Leader Peter Dutton said he wouldn’t support the Labor’s green aluminium scheme, describing it as a “$2 billion con job” and claiming it would result in jobs shifting overseas.

“I can’t find anywhere in the world an aluminium smelter, a high energy use aluminium smelter, that is only run on wind and solar and batteries,” he said.

Originally published as Rio Tinto and Edify Energy deal expected to provide 80 per cent of power