Rio Tinto drives development of Gladstone solar farm

Rio Tinto (ASX:RIO) has agreed to buy all electricity from the 1.1GW Upper Calliope solar farm for 25 years to provide renewable power to its Gladstone operations.

This agreement will bring more renewable power to one of Australia’s most important industrial hubs and marks a step towards Rio’s climate goal of halving its global scope one and two carbon emissions this decade.

If combined with more renewable power and suitable firming, transmission and industrial policy, it could also provide the core of a solution to repower Rio’s three Gladstone production assets — the Boyne aluminium smelter, the Yarwun alumina refinery and the Queensland alumina refinery.

Pending development and grid connection approvals, the plant will be built and operated by European Energy Australia at a site 50km southwest of Gladstone.

Once approved and developed, Upper Calliope will have the potential to lower Rio’s operating carbon emissions by 1.8mtpa.

Rio Tinto chief executive Jakob Stausholm says the agreement is an important step in the company repowering its Gladstone operations.

“The task remains challenging, but we have a pathway to provide the competitive, firmed power our Gladstone plants needs and we are continuing to work hard with all stakeholders, including the Queensland and Australian governments, on getting there,” he said.

“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.”

The Upper Calliope plant is targeted to start production in 2025 or 2026 and when complete, will provide enough electricity to meet about 5% of Queensland’s current demand.

European Energy chief executive Erik Andersen says the company is proud to be a strategic partner in the project.

“Our commitment to providing renewable and reliable energy aligns perfectly with Rio Tinto’s ambitious climate goals,” he said.

“The Upper Calliope solar farm is not just a solar power projects; it’s a testament to our shared vision for a greener future.

“By supplying renewable energy to one of Australia’s key industrial hubs, we are setting a new standard for industrial energy consumption.”

Upper Calliope is the first successful applicant in a request for proposals made by Rio Tinto for renewable power and firming projects in Central and Southern Queensland.