Rio Tinto signs biofuel deal to cut emissions at Gladstone refineries

Rio Tinto has signed a five-year agreement with Australian bioenergy company SuperChar Limited (SCL) to supply bio pellets for its alumina refineries in Gladstone, marking another step in the mining group’s efforts to reduce its reliance on fossil fuels.

Deliveries of the locally produced bio pellets are expected to begin in 2028 following operational trials, regulatory approvals and the completion of a new production facility in Central Queensland.

The agreement follows successful trials and a feasibility study that assessed the use of bio pellets as a replacement for coal in steam generation at Rio Tinto’s alumina refineries. According to the company, the trials demonstrated that bio pellets could replace up to 30% of the coal used in refinery boilers under test conditions.

Under the new partnership, Rio Tinto will carry out further operational demonstrations using bio pellet blends ranging from 5% to 50% as it evaluates the fuel’s suitability for large-scale deployment across its Gladstone operations.

The initial agreement is intended to support further assessment of the technology, with the potential for supply volumes to increase if the project proves successful.

SuperChar plans to build a bio pellet manufacturing facility in the Gladstone region using locally grown bana grass as its feedstock. The perennial energy crop is well suited to Central Queensland’s climate and can be planted and harvested using conventional sugar cane machinery while remaining productive for more than 15 years.

The planned facility will initially produce around 35,000 tonnes of bio pellets each year. At full contract volumes, Rio Tinto estimates the project could reduce reported Scope 1 greenhouse gas emissions by up to 90,000 tonnes of carbon dioxide equivalent annually under Australia’s National Greenhouse and Energy Reporting framework.

Rio Tinto Aluminium Pacific Operations Managing Director Armando Torres said reducing emissions from alumina refining will require a combination of new technologies, innovation and industry partnerships, with bio pellets representing one practical solution currently under evaluation.

He said the company’s trials and feasibility work had provided valuable technical insights and that the new agreement would allow Rio Tinto to better understand how bio pellets could be integrated into day-to-day refinery operations and expanded over time.

Torres added that the project has the potential to create new industries and supply chains across Central Queensland by strengthening links between agriculture and heavy industry.

SuperChar Executive Chairman Michael Palmer said the agreement builds on several years of collaboration between the two companies and demonstrates the potential for locally produced, regeneratively grown biomass to serve as a lower-carbon industrial fuel.

He said the project could also generate new economic opportunities for regional communities while supporting Australia’s transition towards more sustainable industrial energy sources.

SuperChar plans to begin progressively planting bana grass from late 2026, with commercial bio pellet production targeted to start in 2028.

Rio Tinto‘s initial use of the bio pellets is expected to begin at its Yarwun alumina refinery before expanding to Queensland Alumina Limited, subject to regulatory approvals and operational readiness at both facilities. The project forms part of Rio Tinto’s broader strategy to decarbonise alumina production, one of the company’s most energy-intensive operations, as the global mining industry seeks lower-carbon alternatives to coal and other fossil fuels.