Rio Tinto plans further investment in renewable energy in the Pilbara
November 29 2022 - 5:00PM
Business Wire
Rio Tinto is planning to invest a further $600 million in
renewable energy assets in the Pilbara as part of the company’s
efforts to decarbonise its Western Australian iron ore
operations.
The investment will fund the construction of two 100MW solar
power facilities as well as 200MWh of on-grid battery storage in
the Pilbara by 2026. This is in addition to the 34MW of solar power
installed at the recently commissioned Gudai-Darri iron ore
mine.
Initial funding for Rio Tinto’s first major stand-alone solar
farm on the Pilbara coast has been approved, a 100MW solar
photovoltaic system and associated transmission infrastructure.
Construction, which will involve the installation of approximately
225,000 solar panels built to withstand the Pilbara’s cyclonic
conditions, is expected to start next year ahead of project
commissioning in 2025.
Rio Tinto is engaging with State and local authorities as well
as Traditional Owners about the project and relevant approvals.
Final capital approval is expected in the second quarter next
year.
These new projects combined are expected to abate around 300,000
tonnes of CO2, equivalent to a 10 per cent reduction in total Scope
1 and 2 emissions from Rio Tinto’s iron ore business in the Pilbara
based on 2021 levels. It will also reduce gas costs by
approximately $55 million per annum at current prices by displacing
around 30 per cent of the company’s current gas consumption in the
Pilbara.
This new investment forms part of Rio Tinto’s previously
announced plan to complete installation of a 1 gigawatt (GW)
renewable energy system in the Pilbara as part of a global
commitment to invest approximately $7.5 billion to halve emissions
by 2030. This will include significant investment in transmission
infrastructure to support full decarbonisation of the Pilbara
including electrification of mobile and rail equipment beyond 2030
which is estimated to require up to 3GW of installed renewable
energy assets.
Rio Tinto Iron Ore Chief Executive Simon Trott said, “The
Pilbara is extremely well-positioned to take advantage of renewable
power with land, access to people, and abundant wind and solar
resources. Our Pilbara electricity grid is the largest
privately-owned grid in Australia, ensuring that we have the
initial infrastructure required to enable a transition to renewable
energy.
“We expect to invest around $3 billion to install renewable
energy assets as well as transmission and storage upgrades in the
Pilbara as part of our commitment to halve our emissions from the
Pilbara by the end of this decade.”
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