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Investing.com-- Rio Tinto Ltd (ASX:RIO) said on Thursday that it had signed two new solar and battery service agreements with Edify Energy for the supply of electricity to Rio’s Gladstone aluminum operations in Queensland.
Rio will buy 90% of the power and battery storage generated by Edify’s Smoky Creek & Guthries’ Gap solar power stations for 20 years, with Edify set to build, own and operate the power projects. Construction of the two is set to begin in late 2025 and is targeted to complete in 2028.
The move comes amid a growing push by Rio to decarbonize its aluminum operations, especially after the Australian Government earlier this year announced a program to support production of low-carbon aluminum.
Rio had in January also signed a partnership with aluminum producer Norsk Hydro (OTC:NHYDY) to develop more carbon capture technology for the industry.