Wedoany.com Report-Nov. 23, Rio Tinto’s Kennecott operation advanced its decarbonisation plans by signing a 15-year virtual power purchase agreement with TerraGen for renewable electricity from a newly completed wind farm in Texas. Under the agreement, Rio Tinto will purchase 78.5 megawatts of renewable power generated by TerraGen’s 238.5-megawatt Monte Cristo I Windpower project. A ribbon cutting ceremony was held on site to mark the start of commercial operations.

Nate Foster, Managing Director of Rio Tinto Kennecott, said: “This agreement strengthens Rio Tinto’s renewable energy portfolio in the United States and supports the continued growth of greenfield renewable energy generation capacity in the US grid. It’s the latest in a series of renewable energy projects for Kennecott, following the installation of a 5MW solar plant in 2023, and a second 25MW solar plant nearing completion. We continue to look for ways to power our operations while also lowering our emissions to help achieve Rio Tinto's long-term decarbonisation goals.”

Rio Tinto has stated its objective of reducing Scope 1 and 2 emissions by 50 percent by 2030 and aims to reach net-zero emissions by 2050. The company reported that approximately 78 percent of the electricity it uses globally comes from renewable sources, and it intends to increase this share to around 90 percent by 2030 through investment and updated supply arrangements.

The VPPA with TerraGen provides renewable power that will support Kennecott’s operations while contributing to the expansion of renewable energy generation capacity in the United States. The agreement aligns with Rio Tinto’s broader strategy to integrate more sustainable energy sources into its global operations and improve long-term emissions performance.