en.Weodoany.com Report on Mar 27th, Rio Tinto Group has reached an agreement with the Queensland state and federal governments of Australia to jointly invest AUD 2 billion, ensuring the long-term operation of the Gladstone Boyne aluminium smelter until 2040. This partnership, as part of the federal government's "Future Made in Australia" initiative, will support the smelter's transition to renewable energy and secure manufacturing jobs in central Queensland.
The agreement builds upon multiple Power Purchase Agreements (PPAs) signed by Rio Tinto in recent years, providing security for new renewable energy and storage projects in Queensland worth AUD 7.5 billion. Combined with solar and wind investments supported by Rio Tinto, Boyne Smelters Ltd will continue producing aluminium after its current electricity contract expires in 2029, at least until 2040. Jérôme Pécresse, CEO of Rio Tinto Aluminium and Lithium, stated, "This transformative partnership with the Queensland and Australian governments will ensure the Boyne Smelter remains internationally competitive, strengthens the future of Australian aluminium, and supports the transformation and decarbonisation of Queensland's energy system."
Pécresse added, "As fossil fuels become increasingly expensive, this investment, combined with our signed PPAs, makes Boyne one of the world's first aluminium smelters primarily powered by solar and wind energy. This also ensures heavy manufacturing like aluminium smelting can continue long-term in Gladstone and protects one of the few fully integrated aluminium value chains in the world—from bauxite mining to alumina refining to aluminium smelting, all within Queensland—as demand for aluminium continues to grow through the energy transition."
In addition to previously announced PPAs, Rio Tinto has agreed to offtake 40% of Lightsource bp's Lower Wonga solar and battery hybrid project near Gympie, equivalent to 112 MW AC of solar capacity and approximately three hours of associated battery storage. This brings Rio Tinto's total contracted renewable energy capacity in Queensland to over 2.8 GW, further solidifying the foundation for the sustainable operation of the Gladstone aluminium smelter.
