Australia’s largest aluminium smelter to run on renewables by 2023 after Rio Tinto strikes $2.5bn taxpayer bailout deal
Summary
Rio Tinto and the Australian governments have agreed on a $2.5 billion deal to keep Australia’s largest aluminium smelter running by using renewable energy by 2033. The agreement provides a 10-year power supply guarantee after the current coal power contract ends, aiming to reduce the smelter’s greenhouse gas emissions and support jobs.Key Facts
- Rio Tinto’s Tomago aluminium smelter near Newcastle will run fully on renewable energy by 2033.
- The federal and New South Wales governments agreed to provide $2.5 billion in subsidies to keep the smelter open.
- The deal starts after the smelter’s current coal power contract expires in December 2028.
- This subsidy is meant to support nearly 3,000 megawatts of new renewable energy sources in New South Wales.
- The smelter reduces emissions by 7.1 million tonnes per year, about 1.5% of Australia’s total climate pollution.
- Rio Tinto will invest $1.1 billion over 12 years at the smelter, including $100 million for reducing carbon emissions.
- The smelter uses over 10% of New South Wales’ electricity and directly employs about 1,000 people, supporting 5,000 more jobs indirectly.
- The renewable energy will come from various sources like wind farms and solar panels backed by batteries.
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