Anglo-Australian multinational mining company Rio Tinto's decision to power its operations in Gladstone with electricity purchased from the Upper Calliope Solar Farm, Australia's largest solar power project, is estimated to lower the company's operating carbon emissions by 1.8 million tonnes per year, Rio Tinto announced on Wednesday.
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.
European Energy will build and operate the plant at a site about 50 kilometers southwest of Gladstone, pending development and grid connection approvals.
According to Jakob Stausholm, chief executive of Rio Tinto, the agreement is the first important step in repowering the company's Gladstone operations while illustrating their commitment to maintaining a 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,' Stausholm said.
'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,' he added.
The project, whose construction is targeted to start in 2025 or 2026, will also provide about 5% of Queensland's current demand.
The plant will cover 2,400 hectares, employ 1,000 people during construction and support 100 direct and indirect jobs when operating.
By Duygu Alhan and Sibel Morrow
Anadolu Agency
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