Rio Tinto and Edify Energy have signed two hybrid services agreements (HSAs) to supply renewable energy to Rio Tinto’s Gladstone aluminium operations in Queensland.
Under the agreements, Rio Tinto will acquire 90 per cent of the power and battery storage capacity generated by the Smoky Creek and Guthrie’s Gap Solar Power Stations for the next 20 years.
The projects, which will be developed, owned, and operated by Edify Energy, are set to begin construction in late 2025 and target completion in 2028, Rio Tinto said in a news release.
Once operational, the two solar power stations will collectively generate 600MW of solar power and provide 600MW / 2,400MWh of battery storage.
Rio Tinto’s Chief Executive, Australia, Kellie Parker, emphasised the significance of these agreements in reducing costs and carbon emissions at the company’s Gladstone operations.
“These agreements are integral to repowering our Gladstone aluminium operations with affordable, reliable, and lower-carbon energy for decades to come,” Parker said.
“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.”
Edify Energy’s Chief Executive, John Cole, highlighted the role of the partnership in providing clean and cost-effective electricity.
“The Smoky Creek & Guthrie’s Gap Solar Power Stations deliver the latest in solar, battery, and inverter technology to support Australia’s power needs,” Cole said.
“This collaboration is an important commitment to supporting the sustainable future of Australia’s industrial sector.”
These agreements complement the 2.2GW of renewable wind and solar power purchase agreements (PPAs) Rio Tinto announced earlier in 2024.
Together, the contracted renewable projects will contribute a total of 2.7GW of future wind and solar energy in Queensland.
The combined projects are expected to supply 80 per cent of Boyne smelter’s annual electricity demand, potentially reducing its scope 1 and 2 emissions by 70 per cent, equivalent to eliminating 5.6 million tonnes of carbon dioxide emissions per year.
Rio Tinto’s 90 per cent share of the battery storage system equates to 2,160MWh, expected to provide approximately 30 per cent of the firming required to transition the Boyne smelter to renewable energy.
The system will store green energy for use during peak demand periods and low solar output, improving the stability of Queensland’s power grid.
