Rio Tinto puts out call for 4GW of wind and solar to power Queensland refineries

Mining giant Rio Tinto has issued a call for proposals to develop at least four gigawatts (4,000MW) of large-scale wind and solar power, alongside “firming solutions” such as battery storage, to power two aluminium refineries and one smelter in Queensland’s Gladstone region.

In a statement on Wednesday, Rio said that in launching the formal market Request for Proposals it aimed to start supplying renewable power to the Queensland assets – the Boyne smelter, the Yarwun alumina refinery and the Queensland Alumina refinery – by 2030.

Rio says the three assets require 1140MW of reliable power to operate, which it says equates to at least 4000MW (4GW) of “quality wind or solar power” with firming.

The RFP kicks off the huge task of decarbonising Rio Tinto’s operations and assets, following the company’s pledge in October of last year to spend $A10 billion slashing its scope 1 and scope 2 emissions by half by 2030 – on the road to net-zero by 2050.

Having completed an exit from coal in 2018, Rio Tinto’s core businesses now focus on aluminium, iron ore, copper and other minerals. At 21.9 million tonnes of CO2 emissions, the company’s aluminium segment is responsible for the bulk of Rio Tinto’s emissions footprint.

Even before announcing its ramped up emissions reduction target, Rio had flagged potentially huge renewable energy offtake deals in Queensland, where it is the state’s biggest single energy consumer, mostly from the Boyne Island smelter.

“As Queensland’s largest energy user, we have an important role to play in driving the development of competitive renewable energy sources for our Gladstone assets and supporting the state’s renewable energy targets,” said Rio Tinto’s aluminium chief executive, Ivan Vella, in comments this week.

“It is early in the process, but this is an important step towards meeting both our group climate change target of halving our emissions by the end of the decade and our commitment to net zero emissions by 2050.”

The call for proposals from Rio will no doubt be welcomed by the Queensland government, which is working towards its own target of 50 per cent renewables by 2030.

Despite its abundant renewable potential and state-government owned energy assets, Queensland has been among the hardest hit by the recent energy market chaos that has driven wholesale spot prices to record highs.

State energy minister Mick de Brenni said on Wednesday – ahead of the first meeting of the state and territory energy ministers headed up by federal Labor’s Chris Bowen – that more renewables were the cheapest way out of the current mess.

“Whilst all options are on the table for consideration at the EMM, Queensland would continue to promote policy responses that supported our record on delivering new, cheaper and cleaner generation into the market,” de Brenni said in a statement.

“The formula we are following to keep downward pressure on power prices focuses on connecting more renewables and back-up storage to our grid.

“We are scheduled to deliver at least another 10 solar, five wind farms, three large-scale batteries and one pumped hydro scheme by 2024.

“By the end of 2024, this project pipeline will add more than 1,700 megawatts of wind, 1,363 megawatts of solar and at least 300 megawatts of storage into Queensland’s energy system,” de Brenni said.

The Australian Conservation Foundation on Thursday said that the welcome move by Rio Tinto would put renewed pressure on the state Labor government to boost its own targets and manage the orderly exit from coal.

“With a federal target to cut climate pollution by 43% by 2030 and Rio Tinto taking the lead to repower some of Queensland’s most high-emitting projects, the Palaszczuk government’s 30% by 2030 target is now untenable,” said the ACF’s Gladstone campaigner Jaclyn McCosker.

“As a custodian of the Great Barrier Reef, the Wet Tropics and the Gondwana rainforests, we urge the Queensland government to lift its target and ambition on climate action.”

Rio noted on Wednesday that it had previously signed of a Statement of Co-operation with the Queensland government to work towards establishing more renewable energy in the state.

The company said further announcements on the RFP will be made “when appropriate.”