Rio Tinto begins biofuel crop farming trial for renewable diesel production

As part of a new biofuels pilot, Rio Tinto (ASX: RIO) will develop Pongamia seed farms in Australia to explore the potential of Pongamia seed oil as a feedstock for renewable diesel.

The pilot program aims to determine if Pongamia seed oil can contribute to Rio’s renewable diesel needs while potentially contributing to the growth of a new biofuel sector in Australia.

Currently, Rio is in the final stages of acquiring around 3000ha of cleared land near Townsville in north Queensland to establish farms to study growth conditions and measure seed oil yields.

Rio has partnered with woodfibre processor and exporter Midway to oversee the planting and management of the Pongamia seed farms.

Midway will engage with nurseries, agricultural experts and research organisations throughout the pilot and prioritise opportunities for Traditional Owners and local communities.

As part of its efforts to achieve net-zero scope 1 and 2 carbon emissions by 2050, Rio is actively exploring the potential of biofuels in the low-carbon energy mix.

Rio chief decarbonisation officer Jonathon McCarthy commented on the program.

“While we continue to pursue electrification as the long-term solution for displacing the majority of our diesel use, the Pongamia seed pilot is an important parallel pathway that could reduce our reliance on diesel in the mid-term,” he said.

“Australia does not yet have a biofuel industry sufficient to meet domestic demand.

“A sustainable biofuels industry here could enhance the region’s fuel security, create local economic opportunities and contribute to emissions reductions targets.”

The pilot follows a small-scale trial at Rio’s Grove operations in the Northern Territory where Pongamia samplings were planted to gain an understanding of the response to soil quality, heat and other climate conditions.

Midway managing director Tony McKenna says the company is excited to be partnering with Rio for the innovative pilot program.

“We are proud to be playing an important role in helping develop a sustainable domestic biofuel industry,” he said.

“The collaboration continues the growth of our position as trusted providers with the capability and experience to deliver a variety of projects for emitters who are committed to seeking alternative solutions to reduce their net emissions.”