Rio Tinto Secures Solar Power Deals to Cut Emissions at Gladstone Aluminium Smelter

Rio Tinto Aluminium

New 20-year agreements with Edify Energy to supply 600MW solar and battery power to Boyne smelter.

Rio Tinto has signed two long-term renewable power agreements to supply electricity to its Gladstone aluminium operations in Queensland, Australia, the company announced. The miner will source 90% of output from Edify Energy’s Smoky Creek and Guthrie’s Gap solar and battery projects over 20 years.

Together, the projects will generate 600MW of solar power and provide 600MW / 2,400MWh of battery storage. Construction begins in late 2025, with completion set for 2028.

Clean Energy to Power Majority of Boyne Smelter

The agreements will meet 80% of electricity demand at Rio Tinto’s Boyne aluminium smelter, which produces 500,000 tonnes/year of primary aluminium. According to Rio Tinto, the renewable transition will cut 5.6 million tonnes of CO₂e annually, reducing scope 1 and 2 emissions by 70%.

“These are the first company-backed deals with integrated battery storage,” said Kellie Parker, CEO of Rio Tinto Australia.

The move builds on Rio Tinto’s 2.2GW of renewable PPAs signed in 2024, supporting broader decarbonization across its Queensland alumina and aluminium assets, including Queensland Alumina and Yarwun, two of Australia’s highest industrial CO₂e emitters.

State and Federal Policy Boosts, but Global Tensions Loom

The deals follow Queensland’s commitment to support the Boyne plant’s shift from coal-powered energy, which still dominates the state grid. However, new conservative state leadership plans to tighten wind regulations, potentially delaying other renewable initiatives.

Meanwhile, Australia’s federal government has pledged production credits to aluminium smelters as part of its low-carbon manufacturing strategy. Yet this policy has triggered criticism from the U.S. government, which imposed a 25% tariff on Australian aluminium, citing dumping practices.