Rio Tinto, Edify Energy sign solar, battery hybrid pacts for Gladstone operation
Rio Tinto and Edify Energy have signed two new solar and battery hybrid services agreements (HSAs) to increase the supply of reliable, competitively priced electricity to Rio Tinto’s Gladstone aluminium operations in Queensland, Australia.
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. 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 600 MWac1 of solar and 600 MW/2,400 MWh of battery storage.
Rio Tinto Chief Executive, Australia, Kellie Parker, said: “These agreements are integral to repowering our Gladstone aluminium operations with affordable, reliable and lower carbon energy for decades to come. 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, acknowledged the importance of this new services agreement in providing 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,” he 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.”
When combined with the 2.2 GW 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 2.7 GW2 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%, or 5.6 Mt of carbon dioxide equivalent per year, Rio Tinto says. This is the equivalent of removing about 2 million internal combustion engine cars from the road.
Rio Tinto’s 90% share of the Smoky Creek & Guthrie’s Gap battery system capacity amounts to 2,160 MWh, which will provide about 30% of the firming required to repower the Boyne smelter with renewable energy. It will store green energy for reliable use during peak demand periods or low solar output, which will improve stability and resilience of Queensland’s power network.
Rio Tinto’s three production assets in the Gladstone region are the Boyne aluminium smelter, the Yarwun alumina refinery and the Queensland alumina refinery.
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