One of Australia’s largest Indigenous-led renewable energy initiatives has reached financial close for an up to 150 megawatt solar farm and battery in Western Australia, after sealing a major off-take deal to help decarbonise the Pilbara iron ore operations of mining giant Rio Tinto.
The Yindjibarndi Energy Corporation (YEC) said on Monday that it has signed a 30-year power purchase agreement (PAA) with Rio Tinto, bringing to a close all of the key funding, contractual and developmental consents needed to start construction of a first stage of the Jinbi Solar Project.
Under the agreement, YEC will supply 100 per cent of the electricity generated by Jinbi to Rio Tinto – making a start on the pair’s October 2023 MOU to roll out a series of solar, wind and battery projects to replace the gas-fired generators Rio currently relies on to power its huge iron ore mines.
YEC was launched in July 2023 by the Yindjibarndi Aboriginal Corporation (YAC) and Philippines renewables developer Acen Corporation. It wants to develop around 750MW of wind, solar and batteries on Yindjibarndi Ngurra (country) where the YAC holds exclusive possession, the strongest form of native rights.
Stage 1 of the Jinbi solar farm will be 75 megawatts (MW), with an option to expand it to 150 MW and add a Battery Energy Storage Systems (BESS), subject to regulatory approvals and future development decisions.
YEC says locking in the 30-year PPA with Rio Tinto has allowed it to issue a notice to proceed to its Engineering, Procurement and Construction (EPC) contractor, DT Infrastructure, and its construction accommodation provider, Rapid Camps.
Early site works are already underway, with Yurra, a Yindjibarndi Nation enterprise and YEC’s preferred civil works partner, preparing the site for construction.
“Reaching Financial Close on our first project in the Pilbara within three years of the partnership’s operation is a significant milestone for YEC and our shareholders, the Yindjibarndi Traditional Owners and Acen,” said YEC chief Craig Ricato.
“It confirms that a Yindjibarndi-led project, grounded in Country and culture, can meet the rigorous commercial requirements of the energy market while staying true to our values and governance responsibilities.”
YAC is embroiled in a legal battle with fellow Pilbara iron ore giant, Andrew Forrest’s Fortescue Metals, seeking $1 billion for cultural loss and $825 million for financial loss over the construction and operation of Fortescue’s Solomon mine – which YAC claims was done without appropriate permissions or compensation agreements.
Rio, meanwhile, is chipping away at its goal of reaching a 90 per cent renewable energy supply across its global operations by 2030. The miner has a head-start on this thanks to the hydro supplies for its Canadian smelters – that helps it get to around 78 per cent renewables today.
The task in Australia is more complicated, although progress was made in March when the federal Labor and Queensland LNP governments committed to invest $1 billion each over 10 years – from 2030 to 2040 – to support the long-term future of Rio’s Boyne aluminium smelter in Gladstone.
For its part in the deal, Rio Tinto has committed to underwriting $7.5 billion of new wind, solar and battery storage development in the once coal dominated Gladstone region, which it will contract to supply the smelter’s energy needs through power purchase agreements (PPAs).
And in the Pilbara, Rio has lagged behind Fortescue, which is powering towards its own goal of “real zero” by 2030, meaning no burning of fossil fuels for electricity or mining equipment and transport by then.
Rio Tinto Iron Ore chief Matthew Holcz says the miner is “proud” to be part of the Jinbi project.
“Developing renewable energy on Yindjibarndi Country, in partnership with its Traditional Custodians, creates enduring value – supporting our operations while contributing to long-term economic opportunities on Country,” Holcz said in a statement
“Jinbi demonstrates what is possible when Traditional Owner leadership, long term vision and disciplined project development come together,” Acen Group chief investment officer Patrice Clausse added in a statement.
“Acen is proud to partner with Yindjibarndi on a project that meets rigorous commercial standards while setting a strong benchmark for responsible and respectful renewable energy development in Australia.”
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