REG - Rio Tinto - Australia’s largest solar farm at Gladstone

Rio TintoAnnouncement

24/01/2024 07:15

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RNS Number : 6856A  Rio Tinto PLC  24 January 2024

 

Notice to
ASX/LSE

 

Rio Tinto to drive development of Australia's largest solar farm at
Gladstone

24 January 2024

 

Rio Tinto will drive development of Australia's largest solar power project
near Gladstone, after agreeing to buy all electricity from the 1.1GW(1) Upper
Calliope Solar Farm to provide renewable power to Rio Tinto's Gladstone
operations.

 

The agreement will bring more renewable power into one of Australia's most
important industrial hubs and marks another step towards Rio Tinto's climate
goal of halving its global Scope 1 & 2 carbon emissions this decade(2). If
combined with more renewable power and suitable firming, transmission and
industrial policy, it could also provide the core of a solution to repower Rio
Tinto's three Gladstone production assets - the Boyne aluminium smelter, the
Yarwun alumina refinery and the Queensland Alumina refinery.

 

Under a new power purchase agreement (PPA) signed with European Energy
Australia, Rio Tinto will buy all power generated from the Upper Calliope
solar farm for 25 years. The plant will be built and operated by European
Energy, at a site about 50 kilometres south-west of Gladstone, pending
development and grid connection approvals.

 

Once approved and developed, Upper Calliope would have the potential to lower
Rio Tinto's operating carbon emissions by 1.8 million tonnes per year.

 

Rio Tinto Chief Executive Jakob Stausholm said "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.

 

"The task remains challenging, but we have a pathway to provide the
competitive, firmed power our Gladstone plants need and we are continuing to
work hard with all stakeholders, including the Queensland and Australian
governments, on getting there.

 

"Competitive capacity, firming, and transmission, are critical to developing a
modern energy system that can ensure more large-scale renewables development
in Queensland and help guarantee the future of Australian industry."

 

Once approved, construction of the Upper Calliope plant is targeted to start
in 2025 or 2026 and, when complete, it will provide enough electricity to meet
about 5% of Queensland's current demand. The plant, which is expected to take
two years to construct, will cover 2400 hectares, employ 1000 people during
construction and support 100 direct and indirect jobs when operating.

 

European Energy CEO Erik Andersen said "European Energy is proud to be a
strategic partner in this project with Rio Tinto. Our commitment to providing
renewable and reliable energy aligns perfectly with Rio Tinto's ambitious
climate goals. The Upper Calliope Solar Farm is not just a solar power
project; it's a testament to our shared vision for a greener future.

 

"By supplying renewable energy to one of Australia's key industrial hubs, we
are setting a new standard for industrial energy consumption. This project
underlines our dedication to driving the transition towards renewable energy
in Australia and demonstrates the potential of solar power in transforming the
energy landscape of the region. We look forward to continuing our
collaboration with Rio Tinto and other stakeholders to create a sustainable
and energy-efficient future for Australia."

 

Upper Calliope is the first successful applicant in a formal Request for
Proposals
(https://www.riotinto.com/en/news/releases/2022/rio-tinto-calls-for-proposals-for-large-scale-wind-and-solar-power-in-queensland#:~:text=MELBOURNE%2C%20Australia--(BUSINESS%20WIRE,and%20industry%20in%20the%20region.)
made by Rio Tinto for renewable power and firming projects in Central and
Southern Queensland.

 

Rio Tinto continues to assess other proposals, solutions and partnerships to
help competitively meet the energy needs of its three production assets in the
Gladstone region. These assets require more than 1GW of reliable power to
operate, which equates to over 4GW of quality wind or solar power with
firming. Potential further electrification of plant processes could increase
their electricity demand in the future.

__________________________________________________________________________----------------____________

( )

(1) 1.1GWac or 1.3GWp

(2) From 2018 levels

 

 

Contacts

Please direct all enquiries to media.enquiries@riotinto.com

 

 

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This announcement is authorised for release to the market by Andy Hodges, Rio
Tinto's Group Company Secretary.

 

riotinto.com

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