Rio Tinto has entered into an offtake agreement with Australian company SuperChar (SCL) for bio pellets to be used at its alumina refineries in Gladstone, Queensland, Australia. <\/p>\n
The five-year agreement aims to start deliveries in 2028 and follows earlier operational trials and a feasibility study conducted by Rio Tinto. <\/p>\n
These trials showed that, under specific conditions, bio pellets could replace up to 30% of the coal used to generate steam in refinery boilers. <\/p>\n
The arrangement will see Rio Tinto carry out further operational demonstrations and assessments of various blends of bio pellets and coal, ranging from 5% to 50% bio pellets, at its Gladstone facilities. <\/p>\n
Rio Tinto Aluminium Pacific Operations managing director Armando Torres said: “Reducing our alumina refineries’ reliance on fossil fuel will require a mix of technologies, innovation and partnerships, and bio pellets are one of the practical options we are exploring as part of that. <\/p>\n
“The recent trials and feasibility study have given us valuable insights, and this agreement allows us to take the next step in understanding how bio-pellets could work in practice and be scaled for use at our Gladstone operations. <\/p>\n
“The project also has the potential to support new industries and supply chains in central Queensland, connecting agriculture and industry in new ways.” <\/p>\n
Under this plan, SCL intends to build a production facility in the Gladstone region to manufacture bio pellets using locally grown bana grass. <\/p>\n
The proposed facility is expected to have an initial capacity of 35,000 tonnes per annum (tpa) of bio pellets. <\/p>\n
At planned contract volumes, this could potentially reduce reported scope 1 emissions by up to 90,000tpa of carbon dioxide equivalent, using Australia’s current National Greenhouse and Energy Reporting standards. <\/p>\n
Rio Tinto holds interests in two alumina refineries in the Gladstone area, Yarwun and Queensland Alumina. <\/p>\n
Initial use of SCL’s bio pellets is planned for Yarwun, with later expansion to Queensland Alumina depending on regulatory approvals and operational readiness. <\/p>\n
The start of production at SCL’s facility and the use of bio pellets at either refinery also remain subject to regulatory clearance and site preparations. <\/p>\n
Rio Tinto recently reported a rise in global iron ore sales<\/a> for the second quarter of 2026 to 89 million tonnes, an increase of 5% compared to the same period last year. <\/p>\n