Rio Tinto, Edify sign agreement for Queensland operations

Mining giant Rio Tinto and Australian renewable energy firm Edify Energy have signed two new solar and battery hybrid services agreements to boost the supply of reliable, competitively priced electricity to Rio Tinto’s Gladstone aluminium operations in Queensland. 

Under the agreements, Rio Tinto will purchase 90% of the power and battery storage capacity generated by the Smoky Creek & Guthrie’s Gap Solar Power Stations for 20 years, according to a media release.

Edify Energy will build, own, and operate the projects, with construction due to begin in late 2025 and targeting completion in 2028.

Located in Central Queensland, the adjacent Smoky Creek & Guthrie’s Gap Solar Power Stations, will together feature 600MWac1 of solar and 600MW / 2,400MWh of battery storage.

“These agreements are integral to repowering our Gladstone aluminium operations with affordable, reliable and lower carbon energy for decades to come,” Rio Tinto 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. We continue to investigate further renewable energy investments to repower our Gladstone aluminium operations.”

Edify Energy Chief Executive John Cole said the new services agreement would help provide clean, reliable and cost-effective electricity to energy consumers.

“The Smoky Creek & Guthrie’s Gap Solar Power Stations deliver the latest in solar, battery and inverter technology to support Australia’s power needs,” Edify CEO John Cole said. “This collaboration is an important commitment to supporting the sustainable future of Australia’s industrial sector. We are proud to advance Rio Tinto’s goals to repower its Gladstone operations and to play a role in the transition to a low-carbon economy.”

Combined with the 2.2GW of renewable wind and solar PPAs Rio Tinto announced for its Gladstone operations in 2024, the Smoky Creek & Guthrie’s Gap agreements help secure a total of 2.7GW2 of future wind and solar energy in Queensland.

Together, the four contracted projects are expected to supply 80% of Boyne smelter’s annual average electricity demand, reducing the smelter’s scope 1 and 2 emissions by 70%3, or 5.6Mt of carbon dioxide equivalent per year. This is the equivalent of removing about 2 million internal combustion engine cars from the road, according to the media release.