BRISBANE, Australia-- Rio Tinto has signed a five-year offtake agreement with Australian bioenergy company SuperChar Limited (SCL) for the supply of locally produced bio pellets for use at its alumina refineries in Gladstone, with deliveries targeted to commence in 2028.
The agreement follows Rio Tinto operational trials and a feasibility study and represents the next stage in assessing the use of bio pellets as one of several potential solutions the company is exploring to reduce reliance on fossil fuels in alumina refining.
The trials tested a range of bio pellet and coal blends and demonstrated that bio pellets, under trial conditions, could replace up to 30 per cent of the coal used to generate steam in the refinery boilers.
Under the agreement, Rio Tinto plans to undertake a range of operational demonstrations and assessments of bio pellet blends - ranging from 5 to 50 per cent bio pellets - as a supplement to coal used in boilers at its Gladstone alumina refineries¹.
This initial offtake agreement with SCL will enable Rio Tinto to further assess the potential role of bio pellets, with scope to increase supply over time if the project is successful.
SCL plans to establish a bio pellet production facility in the Gladstone region which will use locally grown bana grass as the feedstock². Bana grass is a high-yielding perennial energy crop suited to Central Queensland. It can be planted and harvested using conventional sugar cane equipment and remains productive for more than 15 years.
The facility will initially have capacity to produce 35,000 tonnes of bio pellets a year, and at full contract volumes, could reduce reported Scope 1 emissions by up to 90,000 tonnes of carbon dioxide equivalent annually, under Australia's current National Greenhouse and Energy Reporting framework.
Rio Tinto Aluminium Pacific Operations Managing Director Armando Torres said: "Reducing our alumina refineries' reliance on fossil fuel will require a mix of technologies, innovation and partnerships, and bio pellets are one of the practical options we are exploring as part of that.
"The recent trials and feasibility study have given us valuable insights, and this agreement allows us to take the next step in understanding how bio-pellets could work in practice and be scaled for use at our Gladstone operations.
"The project also has the potential to support new industries and supply chains in Central Queensland, connecting agriculture and industry in new ways."
SCL Executive Chairman Michael Palmer said: "This agreement builds on several years of collaboration and demonstrates the potential for local, regeneratively grown biomass as an alternative industrial fuel, while creating opportunities for regional communities.
"We look forward to continuing our partnership with Rio Tinto and progressing the project with local stakeholders."
SCL is targeting the progressive roll-out of bana grass planting from late 2026, with the production of bio pellets processing to begin in 2028.
1 Rio Tinto has interests in two alumina refineries in the Gladstone region, Yarwun and Queensland Alumina Ltd. Initial use of SCL's bio pellets is expected to begin at Yarwun, followed by increasing volumes at Queensland Alumina Limited, subject to appropriate approvals and operational readiness at both sites.
2 The establishment of the facility, commencement of production and use of bio pellets at any Rio Tinto Gladstone alumina refineries remains subject to regulatory approvals, and operational readiness.
