Rio Tinto warns the world about the struggle to replace fossil fuels with renewable energy

Rio Tinto has warned the world is struggling to build enough renewable energy to replace fossil fuels, and at the speed needed, to hit aggressive emissions targets, as the miner confronts the challenge of sourcing cleaner power for its Australian aluminium smelters.

Rio Tinto is one of the most significant consumers of energy and heaviest carbon dioxide emitters on Australia's eastern seaboard due to its aluminium smelters and alumina refineries in New South Wales and Queensland.

The Anglo-Australian miner has been sourcing its energy from hydropower in many of its assets globally, while its Boyne and Tomago operations in Australia operate by coal-based electrical grids, causing one of the substantial hindrances to Rio Tinto’s push to cut 50 per cent emissions by 2030.

In 2022, the company sought bids to develop four gigawatts of wind and solar farms, backed up by “firming” assets such as big batteries or gas, to decarbonise its Pacific Aluminium division.

The company aims to build more renewable energy than Australia's present wind and solar capacity combined.

Jakob Stausholm, the Chief Executive Officer of Rio Tinto, said, "It was a key priority for him and his leadership team, but it's not easy. The Pacific Aluminium assets are massive – some of the biggest basic manufacturing industry we’ve got in Australia – and I feel a deep responsibility to our employees to find a viable future for those assets.”

“But... we cannot just carry on. We have to find a way to decarbonise those assets, and for it to be done competitively, we can generate a viable future for those assets.”

According to Rio Tinto, "Queensland needs a coordinated grid solution" and collaboration between suppliers, users, regulators, transmission providers and policymakers."

Stausholm said, “Renewable energy projects, like new mines, came with long lead times for planning, approvals and development. A global challenge was securing new projects on the required scale."

“It’s becoming clear that the world has some ambitious targets on climate change, but it is struggling to develop renewable energy fast enough. We’ve got plenty of energy regarding fossil fuels, but the trick is how fast you can phase that out.”