Mining and metals group Rio Tinto has signed two agreements with Edify Energy to power its aluminium operations in Gladstone, Queensland, Australia. Under the agreements, Edify Energy will build solar power plants and energy storage systems that will power Rio Tinto’s facilities for 20 years.

Key aspects of the agreements

Capacity and energy storage:

Edify Energy will build 600 MW of solar power plants (AC) and 600 MW of energy storage systems (batteries) with a capacity of 2,400 MWh. The facilities will be owned and operated by Edify Energy.

Long-term contracts:

Rio Tinto will purchase power and capacity from the facilities for 20 years.

Timeline:

Construction will begin in late 2025 and be completed by 2028.

Rio Tinto Key Facilities:

Boyne Smelters Alumina Smelter and Yarwun and Queensland Alumina Refineries.

Significance to Rio Tinto

Emissions Reduction: The project will reduce carbon emissions by 70% (5.6 million tonnes per annum) at the Boyne Smelters Alumina Smelter.

Power Security: The integration of energy storage systems will ensure power security.

Long-Term Outlook: Together with the 2.2 GW of renewable energy already agreed, the projects will cover 80% of Boyne Smelters’ annual energy needs.

Global Market Context

Rio Tinto is not alone in moving towards renewable energy. Other metals companies have taken similar steps in recent years:

• Brazil: Mendubim (531 MW) and Albras (902 MW) projects.
• Egypt: Egyptalum and Scatec partner on 1 GW solar plant.
• India: Hindalco Industries signs deal to supply 100 MW of renewable energy.
• USA: EVRAZ to use 300 MW of solar power for its steel plant.

Rio Tinto deal highlights

Use of energy storage: The inclusion of energy storage systems (600 MW / 2,400 MWh) highlights the possibility of providing energy security using renewable energy.

Conclusions

Rio Tinto’s agreements with Edify Energy reflect a general trend in the steel industry to shift to renewable energy sources. The use of energy storage systems makes such projects more reliable and cost-effective, which contributes to the sustainable development of the industry.