Rio Tinto, a global mining giant, is making a significant investment in Pongamia seed farms in Australia to explore the potential of using its seed oil as a feedstock for renewable diesel. This initiative highlights the company’s commitment to reducing its reliance on fossil fuels and achieving its ambitious decarbonization targets.
Rio Tinto sees biofuels as a viable avenue to lower its dependence on fossil diesel, which currently contributes around 10% of its emissions footprint in Australia. While electrification is the company’s long-term strategy for replacing diesel in its fleet, Rio Tinto is actively seeking alternative solutions to expedite its transition to a cleaner energy future.
Pongamia, a fast-growing tree native to northern Australia, offers a compelling opportunity for sustainable biofuel production. The tree produces an abundance of seeds rich in oil and protein, which can be processed into renewable diesel, significantly reducing carbon emissions compared to fossil fuel diesel. Additionally, the seed pod and meal can be used for other purposes, such as cattle feed, further enhancing the value of this versatile plant.
Rio Tinto’s decision to invest in Pongamia seed farms is driven by the current lack of a mature biofuel feedstock industry in Australia capable of meeting domestic demand. The company believes that this pilot project will play a crucial role in bridging this gap while supporting its decarbonization journey.
Rio Tinto is in the final stages of acquiring approximately 3,000 hectares of cleared land near Townsville in north Queensland to establish these farms. The company has partnered with Midway Limited to manage the planting and cultivation of the seed farms, with plans to plant approximately 750,000 Pongamia saplings. This collaboration aims to study the optimal growth conditions for Pongamia and measure the yield of seed oil.
This investment in Pongamia seed farms is part of Rio Tinto’s broader decarbonization strategy, which includes a commitment to investing $5- $6 billion by 2030 to achieve its goals. In 2023, the company’s Scope 1 and 2 emissions were 32.6Mt CO2e, marking a 5.5% reduction from its 2018 baseline.
Rio Tinto is actively exploring and implementing various technologies to reduce its carbon footprint. In July, the company announced plans to install carbon-free aluminum smelting cells at its Arvida smelter in Quebec, Canada, utilizing the first technology license issued by the ELYSIS joint venture. The groundbreaking ELYSIS technology aims to eliminate all direct greenhouse gases from the conventional aluminum smelting process, improving efficiency and lowering costs.
In May 2024, Rio Tinto joined forces with BHP Group to trial large battery-powered haul trucks manufactured by Caterpillar and Komatsu in the Pilbara region of Western Australia. These trials will begin with two Cat 793 haul trucks in 2024, followed by two Komatsu 930 haul trucks in 2026. While electrification is considered the most efficient and cost-effective solution for reducing fossil diesel usage in mining equipment, Rio Tinto acknowledges that mass deployment of battery electric haul trucks at its operations is not expected to be technically or commercially feasible before 2030.
In the meantime, Rio Tinto is exploring other avenues, such as biofuels, to lower diesel-sourced emissions. In June 2023, the company’s Boron operation in California successfully transitioned its heavy machinery from fossil diesel to renewable diesel, making it the first open pit mine in the world to achieve this milestone. Rio Tinto plans to replicate this success at its Kennecott copper operation in Utah this year and is investigating the use of biofuels in situations where electrification may be challenging to implement.
Rio Tinto’s commitment to innovation and sustainability is evident in its diverse range of initiatives to reduce its environmental impact. The company’s exploration of Pongamia seed oil for renewable diesel production demonstrates its proactive approach to transitioning to a cleaner energy future. By exploring multiple solutions and collaborating with partners, Rio Tinto is leading the way in decarbonizing the mining industry and contributing to a more sustainable world.
