Tag Archives: Gladstone

Rio Tinto signs Australia’s largest renewable power purchase agreement

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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 1.4 GW Bungaban wind energy project.

The agreement, which follows the announcement last month of a PPA for the Upper Calliope solar farm in Queensland, will make Rio Tinto the biggest industrial buyer of renewable power in Australia and is another major step in the work to repower the company’s Gladstone production assets – Boyne aluminium smelter, Yarwun alumina refinery and Queensland Alumina refinery.

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 about 40 km from the town of Wandoan, and 290 km southwest of Gladstone, 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 PPA is the second renewable power deal signed for Rio Tinto’s Gladstone operations, after the recent agreement signed with European Energy to drive development of the 1.1 GW Upper Calliope solar farm.

Once developed, the combined 2.2 GW of renewable PPAs with Windlab and European Energy have the potential to lower carbon emissions by about 5 Mt/y and could generate the equivalent of 10% of Queensland’s current power demand.

The Bungaban PPA will bring more renewable power into one of Australia’s most important industrial hubs and marks another step towards Rio Tinto’s climate goal of halving its global Scope 1 & 2 carbon emissions this decade. If combined with more renewable power and suitable firming, transmission, and industrial policy, the Bungaban and Upper Calliope PPAs could also provide the core of a solution to repower Rio Tinto’s three Gladstone production assets.

Rio Tinto Chief Executive, Jakob Stausholm, said: “This agreement with Windlab builds on our momentum in our work to repower our Gladstone operations and provide a sustainable future for heavy industry in Central Queensland.

“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.

“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.”

Once approved, construction of the Bungaban project is targeted to start in late 2025 and is expected to produce electricity by 2029, employ up to 600 people during construction and support up to 30 permanent jobs when operating.

Windlab CEO, John Martin, said: “Securing this PPA is a major milestone for the Bungaban project and a strong signal of the project’s value from the market.

“Windlab is very proud to be partnering with Rio Tinto to support the long-term sustainable future of Rio Tinto’s Gladstone operations.

“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.

“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.

“The project can be responsibly developed, grid connected and producing enough energy to power the equivalent of 740,000 Queensland homes by 2029, while eliminating about 4 Mt of carbon from the state’s generation profile every year.”

Rio Tinto will continue to engage with potential partners to assess other proposals to help competitively meet the energy needs of its three production assets in the Gladstone region. These assets require more than 1 GW of reliable power to operate, which equates to over 4 GW of quality wind or solar power with firming. Potential further electrification of plant processes could increase their electricity demand in the future.

Rio Tinto looks to renewably power Gladstone ops with Australia’s largest solar power project

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Rio Tinto says it will drive development of Australia’s largest solar power project near Gladstone, Queensland, after agreeing to buy all electricity from the 1.1 GW Upper Calliope Solar Farm to renewably power its Gladstone operations.

The agreement will bring more renewable power into one of Australia’s most important industrial hubs and marks another step towards Rio Tinto’s climate goal of halving its global Scope 1 & 2 carbon emissions this decade, the mining company said. If combined with more renewable power and suitable firming, transmission and industrial policy, it could also provide the core of a solution to repower Rio Tinto’s three Gladstone production assets – the Boyne aluminium smelter, the Yarwun alumina refinery (pictured) and the Queensland Alumina refinery.

Under a new power purchase agreement (PPA) signed with European Energy Australia, Rio Tinto will buy all power generated from the Upper Calliope solar farm for 25 years. The plant will be built and operated by European Energy, at a site about 50 km south-west of Gladstone, pending development and grid connection approvals.

Once approved and developed, Upper Calliope would have the potential to lower Rio Tinto’s operating carbon emissions by 1.8 Mt/y, the company says.

Rio Tinto Chief Executive, Jakob Stausholm, said: “This agreement is a first important step in our work to repower our Gladstone operations and illustrates our commitment to keeping sustainably powered industry in central Queensland.

“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.

“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.”

Once approved, construction of the Upper Calliope plant is targeted to start in 2025 or 2026 and, when complete, it will provide enough electricity to meet about 5% of Queensland’s current demand. The plant, which is expected to take two years to construct, will cover 2,400 ha, employ 1,000 people during construction and support 100 direct and indirect jobs when operating.

European Energy CEO, Erik Andersen, said: “European Energy is proud to be a strategic partner in this project with Rio Tinto. Our commitment to providing renewable and reliable energy aligns perfectly with Rio Tinto’s ambitious climate goals. The Upper Calliope Solar Farm is not just a solar power project; it’s a testament to our shared vision for a greener future.

“By supplying renewable energy to one of Australia’s key industrial hubs, we are setting a new standard for industrial energy consumption. This project underlines our dedication to driving the transition towards renewable energy in Australia and demonstrates the potential of solar power in transforming the energy landscape of the region. We look forward to continuing our collaboration with Rio Tinto and other stakeholders to create a sustainable and energy-efficient future for Australia.”

Upper Calliope is the first successful applicant in a formal Request for Proposals made by Rio Tinto for renewable power and firming projects in central and southern Queensland.

Rio Tinto says it continues to assess other proposals, solutions and partnerships to help competitively meet the energy needs of its three production assets in the Gladstone region. These assets require more than 1 GW of reliable power to operate, which equates to over 4 GW of quality wind or solar power with firming. Potential further electrification of plant processes could increase their electricity demand in the future.

Orica and Mitsubishi Heavy Industries team up to tackle decarbonisation

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Mitsubishi Heavy Industries (MHI) and Orica have signed a Memorandum of Understanding (MoU) to explore potential opportunities for collaboration on emission-reduction initiatives, aligned with Orica and MHI’s shared decarbonisation ambitions.

The collaboration will leverage MHI’s reputation for manufacturing excellence and innovation, as well as Orica’s existing presence and emerging opportunities in the global renewable hydrogen and ammonia markets, the companies say.

The collaboration covers various areas of mutual interest, including:

  • Exploring technology deployment opportunities for renewable hydrogen and renewable ammonia production near Orica’s facilities in Newcastle and Gladstone, Australia;
  • Creating demand opportunities for renewable hydrogen and renewable ammonia in the power generation, maritime, industrial and agricultural industries;
  • Investigating activities to further reduce emissions from Orica’s existing operations.

Orica says it is building a strong pathway towards achieving net zero emissions by latest 2050, while positioning the business for a lower carbon world. Orica’s continued partnerships and investment in decarbonisation and the production of renewable hydrogen and renewable ammonia will support Orica’s sustainability goals and also support the individual goals of existing and future customers, including in key Asian growth markets such as Japan.

Orica Chief Development and Sustainability Officer, Andrew Stewart, said: “We are delighted to partner with MHI, a company that shares our vision and commitment to a more sustainable future. This collaboration signals another step towards building Orica’s climate resilience and opportunities to support further growth while supporting our customers to achieve their ESG goals. We look forward to working with MHI to explore potential emissions reduction opportunities for our organisations and our customers.”

On the signing of the MoU, Dr Hitoshi Kaguchi, Senior Executive Vice President at MHI responsible for energy transition and the expansion of growth fields, said: “It is a great honour to be able to collaborate with Orica, a leader in decarbonising hard to abate industry and developing low carbon fuel value chain in Australia. We are looking forward to contributing to Orica’s net zero ambition through our reliable technology in the future.”

Rio Tinto, Sumitomo Corp to cut alumina refinery emissions with Gladstone hydrogen plant

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Rio Tinto and Sumitomo Corporation are to build a first-of-a-kind hydrogen plant in Gladstone, Australia, as part of a A$111.1 million ($74.6 million) program aimed at lowering carbon emissions from the alumina refining process.

The Yarwun Hydrogen Calcination Pilot Demonstration Program received the green light after a A$32.1 million co-funding boost from the federal government’s Australian Renewable Energy Agency (ARENA).

The program is aimed at demonstrating the viability of using hydrogen in the calcination process, where hydrated alumina is heated to temperatures of up to 1,000°C.

It involves construction of a hydrogen plant at the refinery and the retrofit of refinery processing equipment. If successful, the program could pave the way for adoption of the technology at scale globally, Rio says.

Rio Tinto Aluminium Pacific Operations Managing Director, Armando Torres, said: “This pilot plant is an important step in testing whether hydrogen can replace natural gas in Queensland alumina refineries. At Rio Tinto we have put the energy transition at the heart of our business strategy, and this is one of the ways we’re working towards decarbonising our operations.

“We are proud to be developing this new technology here in Gladstone, in partnership with Sumitomo Corporation, and with support from ARENA.”

The project will consist of construction of a 2.5 MW on-site electrolyser to supply hydrogen to the Yarwun refinery and a retrofit of one of Yarwun’s four calciners so it can operate at times with a hydrogen burner.

The trial is expected to produce the equivalent of about 6,000 t/y of alumina while reducing Yarwun’s carbon dioxide emissions by about 3,000 t/y.

Converting the entire plant to green hydrogen could reduce emissions by 500,000 t/y, Rio estimates, the equivalent of taking about 109,000 internal combustion engine cars off the road.

Construction will start in 2024. The hydrogen plant and calciner are expected to be in operation by 2025.

Sumitomo Corporation will own and operate the electrolyser at Yarwun site and supply the hydrogen to Rio Tinto directly. The electrolyser will have a production capacity of more than 250 t/y of hydrogen.

Sumitomo Corporation Energy Innovation Initiative Director, Seiji Kitajima, said: “We are excited to be delivering this hydrogen project together with Rio Tinto as our long-term partner with the support of ARENA.

“Demonstrating real-world applications of hydrogen in industrial settings with motivated partners is essential to reducing carbon emissions and working toward our company’s vision of achieving carbon neutrality by 2050. Through this demonstration, Sumitomo Corporation aims to venture into the commercialisation project to contribute to Rio Tinto’s decarbonisation.

“Sumitomo Corporation is proud to be working on yet another hydrogen project in Australia and contributing to Australia’s own emission reductions goals.”

The pilot plant follows the success of a A$1.2 million feasibility study co-funded by Rio Tinto and ARENA that was announced in 2021.

Rio Tinto says it is committed to achieving net-zero emissions by 2050 and has targets to reduce Scope 1 & 2 emissions by 50% by 2030 from 2018 levels.

Orica and Alpha HPA strengthen high-purity aluminium ties

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Orica has expanded its strategic relationship with Alpha HPA Limited, including acquiring a 5% equity interest and establishing a non-binding Memorandum of Understanding (MoU) to investigate the feasibility of establishing a new high-purity aluminium (HPA) manufacturing facility in North America.

The funds from the equity investment will be used to accelerate final engineering and product marketing for the full-scale HPA First Project at Gladstone, Queensland, and to advance feasibility studies on the potential of an additional HPA manufacturing facility in North America, with the remaining funds used for general working capital.

The non-binding MoU, meanwhile, will see the comapanies mutually investigate the technical and commercial feasibility of establishing a new manufacturing facility in North America to produce HPA products for the rapidly expanding future-facing industries in the region. The facility would seek to leverage and replicate the chemical process synergies that have been successfully established between Orica and Alpha HPA in the development of the HPA First Project at Gladstone. This would include the supply of process reagents and the offtake of process by-products to/from Alpha HPA’s and Orica’s manufacturing facility, supporting circularity between the two parties.

Orica and Alpha HPA previously executed binding, definitive agreements with each other related to the supply of process reagents and the offtake of process by-product to/from Alpha HPA’s First Project and Orica’s Yarwun manufacturing facility (pictured) within the Gladstone State Development Area in north Queensland.

Alpha HPA’s First Project represents the commercialisation of the production of circa-10,000 t/y equivalent of HPA and related products using the company’s proprietary licensed solvent extraction and HPA refining technology. The technology provides for the extraction and purification of aluminium from an industrial feedstock to produce 4N (>99.99% purity) alumina for the intended use within the lithium-ion battery and LED lighting industry.

Orica Managing Director and Chief Executive Officer, Sanjeev Gandhi, said: “Building on our successful partnership with Alpha HPA in Australia, we are thrilled to further expand our relationship and explore opportunities for growth and circularity in North America. The Alpha HPA First project in Queensland has demonstrated how industrial partnerships can optimise resource use, simultaneously creating value and reducing waste.”

Alpha HPA Managing Director, Rimas Kairaitis, said: “Having established a strong working relationship in developing our HPA First Project, the mutual ambition to expand our relationship into North America and establish Orica as a strategic shareholder in our company is a welcome progression of our relationship. Importantly, we see these initiatives as a strong endorsement of the ongoing development of our business.

“Orica has a detailed understanding of our process technology, the advanced nature of our marketing activities, and a strong appreciation of our commitment to building a sustainable business to help decarbonise critical future-facing industries. We welcome Orica as a new shareholder in our company and look forward to taking this exciting next step in our development together.”

Alpha HPA signs reagent and offtake deal with Orica

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The Board of Alpha HPA Limited has executed binding, definitive agreements with Orica Australia in respect of Alpha HPA’s First Project in Gladstone, Queensland.

The agreement relates to the supply of process reagents and the offtake of process by-product to/from Alpha HPA’s First Project and Orica’s Yarwun manufacturing facility within the Gladstone State Development Area in north Queensland.

The nature of the HPA First Project process is such that the use of reagents and the manufacture of by-product is highly complementary to the existing processes in operation at the Orica Yarwun facility, Alpha HPA says. The agreements secure the commitment from both Orica and Alpha to leverage the process synergies to unlock the value from both companies’ projects, it added.

The agreement comprises a Project Implementation Agreement, which describes the capital investment obligations of the parties and the scope for project commissioning and reagent and by-product validation trials. This includes the construction of the full-scale HPA First Project by Alpha HPA and, for Orica, the construction of the piping, tankage and process controls required to deliver reagents to, and receive by-product from the HPA First project.

The agreement confirms a 10-year initial term with an optional extension of 10 years by mutual agreement.

Alpha HPA’s First Project represents the commercialisation of the production of circa-10,000 t/y equivalent of high-purity alumina and related products using the company’s proprietary licensed solvent extraction and HPA refining technology. The technology provides for the extraction and purification of aluminium from an industrial feedstock to produce 4N (>99.99% purity) alumina for the intended use within the lithium-ion battery and LED lighting industry.