Rio Tinto signs on for two new projects expected to take Boyne aluminium smelter to 80 per cent renewables

Metals company Rio Tinto and renewable energy generation and storage provider Edify Energy have agreed to two deals aimed at increasing supply of “reliable, competitively priced electricity” to Rio’s Gladstone aluminium operations.

According to a statement from Rio on Thursday, the solar and battery hybrid services agreements (HSAs) cover purchase of 90 per cent of the power and battery storage capacity generated by the Smoky Creek & Guthrie’s Gap Solar Power Stations for 20 years.

Construction is scheduled to begin late this year and finish in 2028, with Edify the build, own, and operator for both.

Rio’s Chief Executive, Australia, Kellie Parker said: “For the first time, we have integrated crucial battery storage in our efforts to make the Boyne aluminium smelter globally cost-competitive, as traditional energy sources become more expensive.”

The Smoky Creek & Guthrie’s Gap stations are planned to feature 600 megawatts AC of solar and 600 megawatts / 2,400 megawatt hours of battery storage.

Rio expects this to contribute to a total of 2.7 gigawatts of future wind and solar energy in Queensland, including 2.2 gigawatts of renewable wind and solar PPAs announced last year for the company’s Gladstone operations.

The four contracted projects are expected to supply 80 per cent of average annual electricity demand at Boyne Smelter, reducing the smelter’s scope 1 and 2 emissions by 70 per cent or 5.6 megatonnes of carbon dioxide equivalent per year. 

Rio is Boyne Smelters Limited’s majority owner (73.5 per cent.) The other partners are YKK Aluminium (9.5 per cent), UACJ Australia (9.29 per cent) and Southern Cross Aluminium (7.71 per cent).

Within the Gladstone region it also operates the Yarwun alumina refinery and the Queensland alumina refinery.

Picture: credit Rio Tinto

Further reading

Rio Tinto to build Gladstone hydrogen plant

Making aluminium uses 10% of Australia’s electricity. Will tax incentives help smelters go green?

Rio Tinto doubles down to produce renewable aluminium

Rio Tinto wants renewables to decarbonise aluminium production