Global mining giant Rio Tinto has signed Australia’s largest renewable power purchase agreement (PPA) to date, purchasing the majority of its electricity from the planned Bungaban wind energy project developed by Windlab to power its Gladstone facilities in Queensland.
This monumental deal cements Rio Tinto as the largest industrial buyer of renewable power in Australia and underscores the company’s dedication to reducing its carbon footprint, the ASX-listed company said in a media release.
The Bungaban wind energy project, located approximately 290 kilometres southwest of Gladstone, is slated to become a crucial source of clean energy for Rio Tinto’s Boyne aluminium smelter, Yarwun alumina refinery, and Queensland Alumina refinery.
Under the terms of the agreement, Rio Tinto will procure 80 per cent of the electricity generated by the Bungaban project over 25 years.
This move follows Rio Tinto’s recent PPA with European Energy for the Upper Calliope solar farm, collectively positioning the company to significantly lower carbon emissions and advance towards its climate goals.
Rio Tinto’s Chief Executive Jakob Stausholm expressed enthusiasm about the partnership with Windlab, emphasising its role in accelerating the company’s efforts to repower its Gladstone operations sustainably.
Stausholm stated, “This agreement with Windlab builds on our momentum in our work to repower our Gladstone operations and provide a sustainable future for heavy industry in Central Queensland.”
The Bungaban project is expected to commence construction in late 2025, with electricity production targeted for 2029.
Upon completion, the project is projected to create up to 600 jobs during construction and support 30 permanent positions once operational, injecting significant economic stimulus into the regional economy.
Windlab CEO John Martin hailed the PPA as a major milestone for the Bungaban project, highlighting its significance in supporting Rio Tinto’s long-term sustainability objectives.
“This agreement highlights the importance of large-scale renewable energy projects in shoring up Queensland’s powerhouse traditional industries, particularly minerals and advanced processing, which employ thousands of people in regional communities across the state and have a key role to play in our nation’s low-carbon future,” he explained.
Martin also underscored the project’s potential to not only generate clean energy but also create jobs and stimulate local economies, positioning Queensland as a leader in renewable energy development.
Looking ahead, Rio Tinto remains committed to exploring additional renewable energy opportunities to meet the energy needs of its Gladstone operations.
