Rio Tinto has announced plans to invest a further $600 million in renewable energy assets in the Pilbara, with the investment funding the construction of two 100MW solar power facilities as well as 200MWh of on-grid battery storage in the region by 2026.
This is in addition to the 34MW of solar power installed at the recently commissioned Gudai-Darri iron ore mine, and comes as part of the company’s efforts to decarbonise its Western Australian iron ore operations.
Initial funding for Rio Tinto’s first major standalone solar farm on the Pilbara coast has been approved, a 100MW solar photovoltaic system and associated transmission infrastructure.
Construction will involve the installation of approximately 225,000 solar panels built to withstand the Pilbara’s cyclonic conditions and is expected to start in 2023 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, with final capital approval expected in the second quarter of 2023.
These new projects combined are expected to abate around 300,000t of CO2, equivalent to a ten 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 one gigawatt 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.”
