Rio Tinto signs 'Australia's biggest renewable power deal'

The news: Rio Tinto says it has signed "Australia’s largest renewable power purchase agreement (PPA) to date" to supply its Gladstone operations in Queensland, agreeing to buy the majority of electricity from Windlab’s planned 1.4GW Bungaban wind energy project.

The numbers: Under the new PPA with Windlab, Rio Tinto will buy 80% of all power generated from the Bungaban wind energy project over 25 years. The project, which is currently in early development, will be built and operated by Windlab at a site in Queensland subject to development and grid connection approvals.

The remaining 20% of the project’s generated electricity will supply Australia’s National Electricity Market, delivering clean electricity to homes and businesses.

The context: The mining giant said the agreement, which follows its announcement last month of a PPA for the Upper Calliope solar farm in Queensland, will make it the biggest industrial buyer of renewable power in Australia. Rio claims it is a major step to repower the company’s Gladstone production assets — Boyne aluminium smelter, Yarwun alumina refinery and Queensland Alumina refinery.