Rio Tinto signs new wind deal as mining giant aims for 90 per cent renewables by 2030

Mining giant Rio Tinto has announced a new long term wind energy agreement as it continues its push to its goal of reaching 90 per cent renewables across its operations by 2030.

The latest deal is a 15-year virtual power purchase agreement (VPPA) for its Kennecott mining operations with TerraGen, drawing from a new wind farm built in Texas.

Under the agreement, Rio Tinto will purchase 78.5 megawatts (MW) of renewable energy generated by the 238.5 MW Monte Cristo I Windpower project. Commercial operations were commemorated with a ribbon cutting ceremony on site this week.

Rio Tinto aims to reach 90 per cent renewables for its global electricity use, but already has a head-start – thanks to the hydro supplies for its Canadian smelters – that helps it get to around 78 per cent renewables today.

However, it is also seeking to replace the ageing Gladstone coal fired power station in Queensland, and supply its smelter and refineries there (pictured above) with a mix of wind, solar, solar battery hybrids and firming power.

It is also seeking to do the same for its majority owned Tomago smelter in NSW, but has complained of the slowness of developing new projects in that state, and has flagged it may close the ageing facility once its current discounted coal powered supply runs out in a few years.

Rio Tinto is also looking at investing or contracting wind, solar and battery storage for its giant iron ore operations in the Pilbara, although it is not going as quickly there as the likes of Fortescue, which aims to reach “real zero” by 2030, meaning no burning of fossil fuels for electricity or mining equipment and transport by then.

Rio Tinto Kennecott managing director Nate Foster said the new wind agreement strengthens its renewable energy portfolio in the US, and supports the continued growth of greenfield renewable energy generation capacity in the US grid.

“It’s the latest in a series of renewable energy projects for Kennecott, following the installation of a 5MW solar plant in 2023, and a second 25MW solar plant nearing completion,” he said.

” We continue to look for ways to power our operations while also lowering our emissions to help achieve Rio Tinto’s long-term decarbonisation goals.”

Rio Tinto has committed to reducing its Scope 1 and 2 emissions by 50 per cent by 2030 and achieving net zero by 2050.