Rio Tinto launches biofuel crop farming trial for renewable diesel production in Australia
17 September 2024 - 9:31PM
Business Wire
Rio Tinto will develop Pongamia seed farms in Australia as part
of a new biofuels pilot. The project will explore the potential of
Pongamia seed oil as a feedstock for renewable diesel, a cleaner
alternative to traditional fossil fuels.
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Rio Tinto Chief Decarbonisation Officer
Jonathon McCarthy flanked by Pongamia trees. The Pongamia pilot
will explore the potential of Pongamia seed oil as a feedstock for
renewable diesel, a cleaner alternative to traditional fossil
fuels.
The pilot aims to determine if Pongamia seed oil can contribute
to Rio Tinto's renewable diesel needs while potentially
contributing to the growth of a new biofuel sector in Australia.
Rio Tinto is in the final stages of acquiring approximately 3,000
hectares of cleared land near Townsville in north Queensland to
establish farms to study growth conditions and measure seed oil
yields.
Rio Tinto has partnered with Midway Limited, to oversee the
planting and management of the Pongamia seed farms. Midway Limited
will engage with nurseries, agricultural experts and research
organisations throughout the pilot, and prioritise opportunities
for Traditional Owners and local communities.
As part of its ongoing efforts to achieve net-zero Scope 1 and 2
carbon emissions by 2050, Rio Tinto is actively exploring the
potential of biofuels in the low-carbon energy mix. The company
sees biofuels as an avenue to reduce reliance on fossil diesel,
while fleet electrification technologies mature. Rio Tinto is also
investigating how biofuels could be used in scenarios where
electrification may face practical limitations.
Rio Tinto Chief Decarbonisation Officer Jonathon McCarthy said:
“Diesel accounts for around 10 percent of our emissions footprint
in Australia. While we continue to pursue electrification as the
long-term solution for displacing the majority of our diesel use,
the Pongamia seed pilot is an important parallel pathway that could
reduce our reliance on diesel in the mid-term. It also presents a
compelling option for other applications that are challenging to
electrify, including blasting and non-haul equipment.
“Australia does not yet have a biofuel feedstock industry
sufficient to meet domestic demand. A sustainable biofuels industry
here could enhance the region’s fuel security, create local
economic opportunities, and contribute to emissions reductions
targets. We are excited about the potential of the Pongamia seed
pilot and look forward to partnering with Midway Limited and north
Queensland communities.”
Midway Limited Managing Director Tony McKenna said: “We are very
excited to be partnering with Rio Tinto on this innovative pilot
project. We are proud to be playing an important role in helping
develop a sustainable domestic biofuel industry.
“The collaboration continues the growth of our position as
trusted providers with the capability and experience to deliver a
variety of projects for emitters who are committed to seeking
alternative solutions to reduce their net emissions.”
This pilot follows a smaller-scale trial at Rio Tinto Gove
operations in the Northern Territory where Pongamia saplings were
planted to learn more about their response to low soil quality,
heat and other climatic conditions in northern Australia.
About Pongamia
Pongamia (Millettia pinnata) is a legume tree native to
Australia. It is fast-growing, resilient and produces oil-rich
seeds that can be processed into renewable diesel, which offers a
significant reduction in life-cycle carbon emissions compared to
fossil fuel diesel. Pongamia seed can be harvested annually,
leaving the trees and soil intact to store carbon dioxide.
About Midway Limited
Founded in 1980, Midway Limited is one of Australia’s largest
woodfibre processors and exporters with a strong and growing carbon
abatement management business. Midway’s fibre is used in recyclable
paper and packaging, plastic replacement products. The Company is
building a carbon abatement development and management business to
generate carbon abatement and emissions offsets solutions utilising
its expertise in the industry.
Midway has woodchip processing and exporting operations at five
major port locations in key forestry areas around Australia
including: Bell Bay, Tasmania; Portland and Geelong in Victoria;
Brisbane, Queensland; and Melville Island in the Northern
Territory’s Tiwi Islands.
Note to editors
In 2023, Rio Tinto's Boron, California operations became the
first open pit mine in the world to complete the full transition of
its heavy machinery to renewable diesel. The company's Kennecott
copper operation in Utah will also replace its fossil diesel
consumption with renewable diesel in 2024.
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