Rio Tinto Expands Clean Energy Commitment

Rio Tinto empowers its U.S. operations by entering into a key renewable energy deal that aims to foster long-term decarbonization objectives.

Rio Tinto has developed its sustainability policy by signing a new long-term deal to procure renewable energy to power its Kennecott facility in Utah. To acquire 78.5 MW of power, the company entered into a 15-year virtual power purchase contract with TerraGen to acquire the newly opened Monte Cristo I Windpower and Texas project. The relocation increases the dependence and utilization of renewable energy by Rio Tinto, which strives to reduce its emissions and renovate its operation of copper in the U.S.

The agreement is timely, as copper is now included in the U.S. list of critical minerals and Washington and Canberra make renewed attempts to reinforce the collaboration between the countries on clean energy supply chains. Being one of the few working copper smelters in the United States, Kennecott is a crucial producer of copper power grids, EVs, and energy infrastructure for renewable energy.

Rio Tinto indicated that 78% of its total world electricity usage is already supplied with renewable energy and this will be increased to 90% by the year 2030. Other decarbonization initiatives that the company has undertaken are a 5 MW solar generation that was installed in 2023 and a 25 MW solar generation that is in the process of completion.

This recent purchase of renewable energy helps Rio Tinto strengthen its goal of achieving net-zero emissions by 2050 and promote cleaner industrial practices in major markets.