The management of Rio Tinto Ltd $RIO (-2.04%)
$RIO (-2.64%) announced yesterday that it has signed two new solar and battery power contracts with Edify Energy. These will power the company's aluminum production facility in Gladstone, Queensland.
Under the terms of the agreement, Rio will purchase 90% of the electricity generated by Edify's Smoky Creek and Guthries' Gap solar power plants, as well as battery storage capacity, over a 20-year period. Edify will build, own and operate the plants itself. Construction is scheduled to start at the end of 2025, with completion scheduled for 2028.
The move is part of Rio's efforts to further decarbonize its aluminum production - particularly in light of an Australian government incentive program launched earlier this year to support the production of low-carbon aluminum.
Back in January, Rio entered into a partnership with aluminum producer Norsk Hydro to develop new carbon capture technologies for the industry.
