Rio Tinto signs Australia's biggest renewable power deal
Rio Tinto has announced it has signed what it says is Australia’s largest renewable power purchase agreement (PPA) to date to supply its Gladstone operations in Queensland, agreeing to buy the majority of electricity from Windlab’s planned 1.4 GW Bungaban wind energy project.
The agreement, which follows the announcement last month of a PPA for the 1.1 GW Upper Calliope solar farm in Queensland, will make Rio Tinto the biggest industrial buyer of renewable power in Australia and is another major step in the work to repower the company’s Gladstone production assets: Boyne aluminium smelter, Yarwun alumina refinery and Queensland Alumina refinery.
Under the new PPA with Windlab, Rio Tinto will buy 80% of all power generated from the Bungaban wind energy project over 25 years. The project, which is currently in early development, will be built and operated by Windlab at a site in Queensland about 40 km from the town of Wandoan and 290 km south-west of Gladstone, subject to development and grid connection approvals.
The remaining 20% of the project’s generated electricity will supply Australia’s National Electricity Market, delivering clean electricity to homes and businesses.
“This agreement with Windlab builds on our momentum in our work to repower our Gladstone operations and provide a sustainable future for heavy industry in Central Queensland,” said Rio Tinto Chief Executive Jakob Stausholm. “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 Bungaban project is targeted to start in late 2025 and is expected to produce electricity by 2029, employ up to 600 people during construction and support up to 30 permanent jobs when operating.
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