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.
The five-year agreement aims to start deliveries in 2028 and follows earlier operational trials and a feasibility study conducted by Rio Tinto.
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These trials showed that, under specific conditions, bio pellets could replace up to 30% of the coal used to generate steam in refinery boilers.
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.
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.
“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.
“The project also has the potential to support new industries and supply chains in central Queensland, connecting agriculture and industry in new ways.”
Under this plan, SCL intends to build a production facility in the Gladstone region to manufacture bio pellets using locally grown bana grass.
The proposed facility is expected to have an initial capacity of 35,000 tonnes per annum (tpa) of bio pellets.
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.
Rio Tinto holds interests in two alumina refineries in the Gladstone area, Yarwun and Queensland Alumina.
Initial use of SCL’s bio pellets is planned for Yarwun, with later expansion to Queensland Alumina depending on regulatory approvals and operational readiness.
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.
Rio Tinto recently reported a rise in global iron ore sales for the second quarter of 2026 to 89 million tonnes, an increase of 5% compared to the same period last year.
