Global mining and metals company Rio Tinto announced that it has signed a 15-year virtual power purchase agreement with renewable energy developer TerraGen for energy from a newly completed wind farm in Texas, for the company’s Kennecott operations in Utah, one of the world’s top producing copper mines.
Rio Tinto is one of the world’s biggest producers and processors of iron ore, copper, aluminum and a range of other minerals and materials. The company has committed to reduce its operational Scope 1 and 2 emissions by 50% by 2030, and to achieve net zero by 2050, with initiatives including switching to renewables at scale, electrification, developing new technologies and addressing emissions related to process heat at its refineries and processing operations. The company currently sources about 78% of its global electricity from renewables and said it plans to increase that figure to roughly 90% by 2030.
The new agreement forms part of a series of initiatives to reduce the carbon footprint of the Kennecott operations, including recently completing the transition all heavy mining equipment at the mine to renewable diesel fuel from conventional diesel.
Nate Foster, Managing Director of Rio Tinto Kennecott, said:
“This agreement strengthens Rio Tinto’s renewable energy portfolio in the U.S. and supports the continued growth of greenfield renewable energy generation capacity in the U.S. grid. It is the latest in a series of renewable energy projects for Kennecott, following the installation of a 5 MW solar plant in 2023, and a second 25 MW solar plant nearing completion. We continue to look for ways to power our operations while also lowering our emissions to help achieve Rio Tinto’s long-term decarbonisation goals.”
Under the new agreement, Rio Tinto will buy 78.5 MW of renewable power generated by TerraGen’s 238.5 MW Monte Cristo I Windpower project in Hidalgo County, Texas. TerraGen recently announced the commissioning of the project, anticipated to generate more than 850 gigawatt-hours of clean electricity annually, equivalent to powering approximately 81,000 homes a year.
John O’Connor, Chief Financial Officer for TerraGen, said:
“This project underscores Terra-Gen’s commitment to expanding access to renewable energy across Texas and the U.S. and providing clean, sustainable power, and investing in our local communities.”
