Rio Tinto signs new wind deal for Kennecott to lock in 78.5MW renewable power via VPPA

Rio Tinto, Australia

Rio Tinto signs new wind deal for Kennecott to expand renewable power coverage for its Utah copper operations. Rio Tinto signed a 15-year renewable energy supply agreement with Terra-Gen for the Kennecott copper mine near Salt Lake City. Rio Tinto signs new wind deal for Kennecott to secure 78.5MW of renewable energy from TerraGen’s Monte Cristo I wind farm in Texas. Therefore, the miner is tightening the link between low-carbon electricity and copper supply reliability.

TerraGen will supply power from the 238.5MW Monte Cristo I wind farm in Hidalgo County, Texas. The wind facility began commercial operations this week. Meanwhile, Rio Tinto structured the purchase through a virtual power purchase agreement. As a result, the company can decarbonize its electricity footprint without requiring direct physical delivery.

VPPA structure extends the Kennecott decarbonization roadmap

Rio Tinto signs new wind deal for Kennecott as part of a broader decarbonization push at the site. The company installed a 5MW solar plant in 2023 and is close to finishing a 25MW solar plant. Meanwhile, the VPPA adds longer-term renewable coverage and price visibility. Therefore, Kennecott’s energy strategy is moving from pilot assets to portfolio-style procurement.

This approach is increasingly common for energy-intensive metals. VPPAs can hedge power exposure and reduce reported emissions intensity. However, they require careful accounting and contract management. As a result, the structure matters as much as the headline megawatts.

Integrated mining, smelting, and refining makes energy a strategic lever

Kennecott is an integrated copper complex, not only a mine. The site includes a concentrator, smelter, and refinery, plus transport and storage infrastructure. Meanwhile, electricity and heat costs influence operating margins across the chain. Therefore, renewable procurement can support both decarbonization targets and resilience during power market volatility.

Copper buyers are also tightening sustainability requirements. Lower-carbon power can help miners defend market access and premium contracts. However, the benefits depend on consistent operations and transparent emissions reporting. As a result, Rio Tinto signs new wind deal for Kennecott with both cost and customer strategy in mind.

The Metalnomist Commentary

Copper is becoming an electricity story as much as a mining story. Meanwhile, integrated smelting sites face greater scrutiny on Scope 2 emissions. Therefore, long-dated VPPAs will keep spreading across the copper industry as customers demand verified low-carbon supply.