(Reuters) -Rio Tinto Ltd has signed a renewable power purchase agreement with specialist renewable energy firm Windlab to buy the majority of electricity from its planned 1.4 giga-watt (GW) wind energy project in Queensland, the miner said on Wednesday.
Rio Tinto (NYSE:RIO) will buy 80% of all power generated from the Bungaban wind energy project over 25 years, the world's largest iron ore producer said.
The project is currently in early development, and will be built and operated by Windlab in Queensland, subject to development and grid connection approvals.
The construction of the Bungaban project is targeted to start in late 2025 and is expected to produce electricity by 2029, Rio Tinto said in a statement.
"This agreement with Windlab builds on our momentum in our work to repower our Gladstone operations and provide a sustainable future for heavy industry in Central Queensland," Chief Executive Jakob Stausholm said.
The remaining 20% of the Bungaban project's generated electricity will supply Australia’s National Electricity Market.
Last month, Rio Tinto announced another renewable energy purchase deal with European Energy Australia to buy all electricity from the 1.1 GW Upper Calliope solar farm for its Gladstone operations.