Rio Tinto signs power deal for giant Australia solar farm

Rio Tinto (NYSE:RIO) has announced a game-changing agreement. The mining giant has committed to procuring all electricity generated from what will be Australia’s biggest solar farm over a quarter of a century. This significant move is part of the corporation’s ambitious plan to drastically slash its global Scope 1 and 2 carbon emissions by 2030.

Under the terms of the newly inked power purchase arrangement with European Energy, Rio Tinto (RIO) pledges to acquire all power produced by the Upper Calliope solar facility. Once operational, this plant has the potential to curb the company’s annual operating carbon emissions by a staggering 1.8 million metric tons.

Situated approximately 50 kilometers southwest of Gladstone, the Upper Calliope installation, once approved and developed, is set to power Rio’s (RIO) three key Gladstone production assets: the Boyne aluminum smelter, the Yarwun alumina refinery, and the Queensland alumina refinery.

The construction of the Upper Calliope solar plant is anticipated to commence in 2025 or 2026, marking a significant milestone in Rio Tinto’s journey toward embracing renewable energy sources and tackling climate change head-on.