Global mining and metals company Rio Tinto announced today that it has signed Australia’s largest clean energy deal, agreeing to buy the majority of the electricity from a 1.4 GW wind energy project under development by renewable energy provider Windlab to power its Gladstone operations in Queensland.

The deal marks the second mega-scale renewable energy power purchase agreement (PPA) for Rio Tinto over the past few weeks, following a deal last month to purchase all the electricity generated by a 1.1 GW solar project, also aimed at powering the Gladstone operations, which include the Boyne aluminium smelter, the Yarwun alumina refinery and the Queensland Alumina refinery.

According to Rio Tinto, the combined agreements make the company the biggest industrial buyer of renewable power in Australia, and have the potential to reduce the company’s carbon emissions by 5 million tonnes per year, supporting its goal of cutting its Scope 1 and 2 emissions in half by 2030. The combined 2.2GW of energy contracted under the PPAs could also generate 10% of Queensland’s current power demand.

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.”

Under the new PPA with Windlab, Rio Tinto will buy 80% of all power generated from the Bungaban wind energy project over 25 years, with the remaining 20% supplying Australia’s National Electricity Market. The project is in early development and subject to development and grid connection approvals. Once approved, construction is anticipated to start in late 2025, and electricity production is expected to begin in 2029.

Windlab CEO John Martin said:

“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.”