Global mining giant Rio Tinto has entered into a power purchase agreement (PPA) with European Energy Australia, aiming to drive the development of Australia’s largest solar power project, the 1.1GW Upper Calliope Solar Farm, located near Gladstone.
This initiative aligns with Rio Tinto’s commitment to halve its global Scope 1 & 2 carbon emissions by the end of this decade, the ASX-listed company said in a press release.
The Upper Calliope Solar Farm is poised to play a crucial role in Rio Tinto’s broader strategy to repower its three Gladstone production assets: the Boyne aluminium smelter, the Yarwun alumina refinery, and the Queensland Alumina refinery.
If combined with additional renewable power sources, suitable firming, transmission infrastructure, and industrial policy, the project could significantly contribute to achieving Rio Tinto’s climate goals.
Once approved and constructed, the Upper Calliope Solar Farm is expected to reduce Rio Tinto’s operating carbon emissions by 1.8 million tonnes annually.
Construction is targeted to commence in 2025 or 2026, with the project providing approximately five per cent of Queensland’s current electricity demand upon completion.
The solar farm will cover 2400 hectares, employing 1000 people during construction and supporting 100 direct and indirect jobs when operational.
Rio Tinto Chief Executive Jakob Stausholm emphasised the significance of the agreement, stating, “This agreement is a first important step in our work to repower our Gladstone operations and illustrates our commitment to keeping sustainably powered industry in Central Queensland.”
He acknowledged the challenges ahead but expressed confidence in working collaboratively with stakeholders, including the Queensland and Australian governments, to achieve their goals.
The European Energy CEO Erik Andersen highlighted the partnership’s commitment to providing renewable and reliable energy, aligning with Rio Tinto’s ambitious climate goals.
According to him, the Upper Calliope Solar Farm is not only a solar power project but also a testament to their shared vision for a greener future, setting a new standard for industrial energy consumption.
Upper Calliope is the first successful applicant in Rio Tinto’s formal Request for Proposals for renewable power and firming projects in Central and Southern Queensland.
