Rio Tinto Kennecott wind VPPA secures 78.5MW for Utah copper decarbonization

Kennecott

The Rio Tinto Kennecott wind VPPA expands renewable sourcing for copper production. Rio Tinto signed a 15-year renewable energy supply agreement with TerraGen for its Kennecott copper mine. The Rio Tinto Kennecott wind VPPA covers 78.5MW of renewable power. Therefore, Kennecott copper mine decarbonization moves closer to execution.

TerraGen will deliver supply from the Monte Cristo I wind farm. The project totals 238.5MW in Hidalgo County and began commercial operations this week. Meanwhile, miners are shifting to long-term renewable contracts to manage carbon exposure. As a result, VPPAs are becoming a mainstream tool for metals producers.

TerraGen wind output supports a 15-year renewable energy supply agreement

The VPPA ties Kennecott’s load to wind generation attributes. Rio Tinto will source 78.5MW from the Monte Cristo I asset. However, a VPPA settles financially and does not physically deliver electrons to Utah. Therefore, the contract still supports emissions accounting through renewable attributes.

This structure can hedge power pricing and reduce reported emissions intensity. It can also align with customer demands for low-carbon copper. Meanwhile, copper buyers are tightening Scope 3 expectations across supply chains. As a result, renewable contracts can improve offtake competitiveness.

Kennecott adds solar capacity alongside wind procurement

Kennecott is building a broader clean energy portfolio. Rio Tinto installed a 5MW solar plant in 2023. It is also finishing a 25MW solar plant. Therefore, the Rio Tinto Kennecott wind VPPA complements on-site generation.

Kennecott operates integrated downstream infrastructure beyond the mine. The site includes a concentrator, smelter, refinery, and logistics assets. Meanwhile, these assets drive large, steady electricity demand. As a result, renewable contracting can support decarbonization across the full copper value chain.

The Metalnomist Commentary

Integrated copper sites win when they decarbonize smelting and refining, not only mining. Meanwhile, VPPAs offer speed, but they do not fix local grid constraints. Therefore, Rio Tinto should pair contracts with operational efficiency and on-site flexibility.