ACEN subsidiary Yindjibarndi Energy Corporation (YEC) has achieved financial close and signed a 30-year power purchase agreement (PPA) with Rio Tinto, an Anglo-Australian mining company, for the Jinbi Solar Project. The project is located in Pilbara, Australia. Under the agreement, YEC will supply 100 per cent of the electricity generated from the project to support decarbonisation of Rio Tinto’s Pilbara iron ore operations.
Phase 1 of the project will include a 75 MWac solar facility, with potential expansion to 150 MWac and future integration of BESS. The project construction is set to commence in line with the approved development schedule. Full commercial operations and commencement of the 30-year power supply period for the project are targeted for mid-2028.
The two companies had signed a memorandum of understanding (MOU) in late 2023 to explore possible opportunities for collaboration on renewable energy projects in the Pilbara region of Western Australia, where Rio Tinto operates four gas-fired power stations. In 2023, the company had announced estimations of about 600 MW to 700 MW of renewable generation to displace the majority of gas use across its network.
In 2022, Rio Tinto Group had issued a request for proposal (RFP) to develop 4 GW of utility-scale wind and solar power projects for its aluminium projects in central and southern Queensland, bordering south Australia. The large-scale renewable projects would assist the company in achieving its climate change targets, which are aligned with the Paris Accord.
REGlobal’s Views: Rio Tinto has long-term ambitions of reaching net zero emissions by 2050. The company has planned significant investments for decarbonisation projects, and renewable energy procurement not just in Australia but also in the US, Madagascar and South Africa. Apart from repowering aluminium projects with renewables, the company is also exploring the application of biofuels and bioenergy in different processes.