Rio Tinto and Edify Energy have finalized two hybrid services agreements (HSAs) for the development of solar and battery storage projects in central Queensland. The projects, located at Smoky Creek and Guthrie's Gap, will feature a combined 600 MWac of solar capacity and 600 MW / 2400 MWh of battery storage.
The 20-year agreements will provide Rio Tinto with clean electricity for its Gladstone aluminium operations. Under the terms of the deal, Rio Tinto will purchase 90% of the electricity and battery storage capacity generated by the Smoky Creek and Guthrie's Gap facilities.
Edify Energy will be responsible for the construction, ownership, and operation of the projects, which are expected to begin construction in late 2025 and reach completion by 2028.
Kellie Parker, CEO of Rio Tinto Australia, emphasized the importance of the agreements in transitioning the company's Gladstone aluminium operations to more sustainable energy sources. “These agreements are integral to repowering our Gladstone aluminium operations with affordable, reliable, and lower carbon energy for decades to come,” Parker said. “For the first time, we have integrated crucial battery storage in our efforts to make the Boyne aluminium smelter globally cost-competitive, as traditional energy sources become more expensive.”
John Cole, CEO of Edify Energy, highlighted the role of hybrid services agreements in supporting Australia's energy needs. “The Smoky Creek and Guthrie's Gap solar power stations deliver the latest in solar, battery, and inverter technology to support Australia's power needs,” Cole said. “This collaboration is an important commitment to supporting the sustainable future of Australia's industrial sector.”
The total capacity of the solar farm will be 720 MWp (megawatt peak) of installed solar panels, with 600 MWac of usable power to be supplied to the grid. Rio Tinto's share of the battery storage capacity will amount to 2160 MWh.
This agreement reflects both companies' efforts to advance Australia's low-carbon transition, with a focus on providing reliable and cost-effective renewable energy solutions for industrial use.
