Rio Tinto Inks Solar and Battery Deal for Gladstone Aluminum Sustainability

Strategic Move Toward Low-Carbon Aluminum Production

Rio Tinto Ltd (ASX:RIO) has entered into a groundbreaking solar and battery hybrid services agreement with Edify Energy to power its Gladstone aluminum operations in Queensland, Australia, marking a significant step toward sustainable aluminum production. This deal involves Rio Tinto purchasing 90% of the electricity and battery storage capacity from Edify Energy’s Smoky Creek and Guthrie’s Gap solar power stations for a 20-year period, with Edify set to construct, own, and manage these facilities. The construction of these renewable energy projects is slated to begin in late 2025, with completion targeted for 2028, aligning with Rio Tinto’s ambitious decarbonization goals for its energy-intensive aluminum operations. This initiative follows the Australian government’s $2 billion production credit program announced earlier in 2025, aimed at bolstering low-carbon aluminum manufacturing, and complements Rio Tinto’s $45 million partnership with Norsk Hydro to advance carbon capture technology in the industry.

The Gladstone aluminum operations, encompassing the Boyne smelter, Yarwun alumina refinery, and Queensland alumina refinery, are a cornerstone of Queensland’s economy, employing over 4,500 people directly and supporting thousands more jobs in the region. Under this solar and battery agreement, the Smoky Creek and Guthrie’s Gap projects will deliver a combined 600MWac of solar power and 600MW / 2,400MWh of battery storage, with 720MWp of installed solar panels. Rio Tinto’s 90% stake translates to 2,160MWh of battery capacity, sufficient to meet 80% of the Boyne smelter’s annual electricity needs and provide 30% of the firming capacity required to stabilize its operations with renewable energy. This shift is projected to slash scope 1 and 2 emissions by 70%, or approximately 5.6 million tonnes of CO2e annually, an environmental impact equivalent to removing 2 million gasoline-powered cars from the roads. By integrating solar power and battery storage for aluminum production, Rio Tinto is not only reducing its carbon footprint but also positioning itself as a leader in the global push for sustainable industrial practices.

This solar and battery deal is part of a broader strategy to decarbonize Rio Tinto’s Queensland operations, building on previous renewable energy commitments totaling 2.7GW, including 1.1GW from Windlab’s Bungaban wind project and 1.1GW from European Energy’s Upper Calliope solar farm. The Australian government’s low-carbon aluminum production credit plays a pivotal role in this transition, addressing the industry’s heavy reliance on coal-powered electricity, which accounts for 16 million tonnes of emissions yearly across Australia’s four smelters. By securing renewable energy for Gladstone aluminum sustainability, Rio Tinto ensures the long-term viability of its operations while meeting growing market demand for eco-friendly aluminum, a critical material in industries ranging from automotive to construction. The economic benefits are equally compelling, as the deal preserves over 3,000 jobs in Gladstone alone, including 1,000 at the Boyne smelter, reinforcing the region’s status as an industrial hub.

Beyond the Edify Energy partnership, Rio Tinto’s $45 million, five-year collaboration with Norsk Hydro, announced in January 2025, underscores its multifaceted approach to decarbonization. This joint effort focuses on developing carbon capture technology for aluminum electrolysis, with research conducted at Rio Tinto’s European facilities and Hydro’s Norwegian sites. The partnership aims to identify scalable solutions to capture emissions during production, sharing insights and costs across lab tests and pilot programs. This initiative complements the renewable energy projects, targeting a 50% reduction in Rio Tinto’s operational emissions by 2030, while Norsk Hydro pursues net-zero aluminum production by 2050. Together, these efforts highlight Rio Tinto’s commitment to integrating renewable energy and advanced technology to transform aluminum manufacturing into a low-carbon industry.

The solar and battery agreement with Edify Energy also reflects broader trends in the global aluminum market, where sustainability is becoming a competitive differentiator. As consumers and governments prioritize low-carbon materials, Rio Tinto’s investments in solar power and battery storage for aluminum production position it to capture new export opportunities, particularly in regions with stringent environmental regulations. The projects’ scale, with 600MWac of solar capacity and 2,400MWh of storage, demonstrates a robust infrastructure capable of supporting large-scale industrial operations, setting a benchmark for other heavy industries seeking to decarbonize. Moreover, the 20-year commitment ensures long-term energy security, mitigating risks associated with fluctuating fossil fuel prices and regulatory pressures.

For readers researching Rio Tinto Gladstone solar battery agreement details, the environmental and economic implications are clear. The deal reduces emissions by millions of tonnes, equivalent to a significant portion of Australia’s industrial carbon output, while sustaining thousands of jobs and enhancing the competitiveness of Queensland’s aluminum sector. The integration of 720MWp solar panels and advanced battery storage technology ensures reliable power delivery, addressing the intermittency challenges of renewable energy in industrial applications. As Rio Tinto continues to expand its renewable energy portfolio and innovate through partnerships like Norsk Hydro, it sets a precedent for how large corporations can balance profitability with planetary responsibility, offering a blueprint for sustainable industrial transformation in the 21st century.