Rio Tinto is acquiring about 3000ha of cleared land near Townsville as part of a pilot to determine if Pongamia seed oil can contribute to its renewable diesel needs.
The company sees biofuels as an avenue to reduce reliance on diesel, while fleet electrification technologies mature.
Rio Tinto chief decarbonisation officer Jonathon McCarthy (pictured) says, “diesel accounts for around 10 per cent 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,” Mr McCarthy says.
“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.”
Rio Tinto has partnered with Midway to oversee the planting and management of the Pongamia seed farms.
The land being acquired in North Queensland will be used to study growth conditions and measure seed oil yields.
Rio says Midway Limited will engage with nurseries, agricultural experts and research organisations throughout the pilot and prioritise opportunities for Traditional Owners and local communities.