Rio Tinto signs a new wind energy agreement for the Kennecott Operation

The company has signed a 15-year virtual power purchase agreement (VPPA) with TerraGen to supply renewable energy from a newly completed wind farm in Texas for its Kennecott operation.

Under the agreement, Rio Tinto will purchase 78.5 MW of renewable energy from TerraGen’s Monte Cristo I Windpower project, which has a total capacity of 238.5 MW. The project’s commercial launch was celebrated with an on-site ribbon-cutting ceremony.

Nate Foster, Managing Director of Rio Tinto Kennecott, said the agreement strengthens the company’s renewable energy portfolio in the United States, adding:

“This agreement supports the growth of new, greenfield renewable energy capacity on the U.S. grid. Following the 5 MW solar power plant commissioned in 2023, and together with our second 25 MW solar plant now nearing completion, we continue to invest in renewables at Kennecott. As we power our operations, we are also working on new ways to reduce our emissions.”

Rio Tinto is rapidly expanding its renewable energy sources as part of its goal to reduce Scope 1 and 2 emissions by 50% by 2030 and achieve net-zero emissions by 2050. Approximately 78% of the company’s global electricity consumption already comes from renewable sources, and this share is targeted to reach about 90% by 2030.

The new wind energy agreement is considered a critical step in the energy transition of Rio Tinto’s Kennecott operations and in the company’s long-term decarbonization strategy.