Rio Tinto will buy the majority of electricity from Windlab’s planned 1.4 gigawatt Bungaban wind energy project for use at its Gladstone operations in Queensland.
The purchase will see Rio Tinto become the largest industrial buyer of renewable power in Australia.
Under the agreement, Rio will buy 80 per cent of all power generated from the Bungaban project over 25 year.
The remaining 20 per cent of the electricity will supply Australia’s national electricity market.
Rio Tinto chief executive officer Jakob Stausholm said the agreement will help the company build on its plan to repower its Gladstone operations.
“The task remains challenging, but we have a pathway to provide the competitive, firmed power our Gladstone plants need and we are continuing to work hard with all stakeholders, including the Queensland and Australian Governments, on getting there,” he said.
“Competitive capacity, firming, and transmission, are critical to developing a modern energy system that can ensure more large-scale renewables development in Queensland and help guarantee the future of Australian industry.”
Construction of the Bungaban project is targeted to start in late 2025 to produce electricity by 2029.
Windlab chief executive officer John Martin said the company is proud to be partnering with Rio Tinto.
“This agreement highlights the importance of large-scale renewable energy projects in shoring up Queensland’s powerhouse traditional industries, particularly minerals and advanced processing, which employ thousands of people in regional communities across the state and have a key role to play in our nation’s low-carbon future,” he said.
“Bungaban is a key transition opportunity that will create up to 600 new Queensland construction jobs and inject around $500 million into the regional economy through local employment, supply and contracting.”
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