Rio Tinto to Trial Bio Pellets as Coal Replacement at Gladstone Refineries

Published on: July 27, 2026•4 min read

by KnowESG

Rio Tinto signs SuperChar bio pellet deal to reduce coal use and emissions.

Takeaways

Rio Tinto signs a five-year agreement with SuperChar to test locally produced bio pellets as a partial replacement for coal at its Gladstone alumina refineries.
Operational trials showed that bio pellets could replace up to 30% of the coal used in refinery boilers, supporting the company's emissions-reduction strategy.
A planned bio pellet facility in Gladstone could produce 35,000 tons annually and help cut Scope 1 emissions by up to 90,000 tons of CO₂ equivalent each year.

Global mining company Rio Tinto has signed a five-year offtake agreement with Australian renewable biomass company SuperChar to supply locally produced bio pellets for its alumina refineries in Gladstone, Queensland. The agreement marks another step in Rio Tinto's efforts to reduce fossil fuel use and lower emissions across its refining operations.

Deliveries of the bio pellets are expected to begin in 2028, following further operational testing and project development. The agreement builds on earlier trials and feasibility studies that explored the potential of biomass-based fuels as an alternative to coal in refinery boilers.

Rio Tinto, one of the world's largest producers of iron ore, aluminium, copper, and other minerals, has pledged to reduce its Scope 1 and Scope 2 emissions by 50% by 2030 and achieve net-zero emissions by 2050. To reach these targets, the company is investing in renewable energy, electrification, and cleaner industrial technologies while exploring alternatives for process heat at its refineries.

The latest partnership focuses on replacing a portion of the coal currently used to generate steam at Rio Tinto's alumina refineries. According to the companies, earlier operational trials using different blends of coal and bio pellets showed that biomass fuel could replace as much as 30% of the coal consumed in refinery boilers under test conditions.

As part of the new agreement, Rio Tinto will conduct a series of operational demonstrations using bio pellet blends ranging from 5% to 50%. The first stage is expected to take place at the company's Yarwun alumina refinery, followed by increased use at the Queensland Alumina facility, subject to regulatory approvals and operational readiness.

Armando Torres, Managing Director of Rio Tinto Aluminium Pacific Operations, said that reducing dependence on fossil fuels will require several technologies to work together. He noted that the recent trials provided valuable insights and that the agreement would help the company better understand how bio pellets can be used on a larger scale at its Gladstone operations.

SuperChar produces renewable charcoal from Bana grass, a fast-growing perennial energy crop that can be cultivated and harvested using standard sugar cane farming equipment. The company positions the plant-based fuel as a sustainable replacement for conventional charcoal produced from native forests and tropical hardwoods.

To support the agreement, SuperChar plans to build a bio pellet manufacturing facility in the Gladstone region. The proposed plant will use locally grown Bana grass as feedstock and is expected to produce around 35,000 tons of bio pellets annually in its initial phase.

If the project reaches full contract volumes, the companies estimate that it could reduce Rio Tinto's reported Scope 1 emissions by up to 90,000 tons of carbon dioxide equivalent each year. The agreement also allows for increased bio pellet supply over time if the technology proves successful.

Also Read: Fortescue Builds Global Network to Replace Fossil Fuels with Green Energy

SuperChar Executive Chairman Michael Palmer said the partnership reflects years of collaboration and highlights the growing potential of locally produced regenerative biomass as an industrial fuel. He added that the project could also create new economic opportunities for communities in the Gladstone region while supporting Australia's transition toward lower-carbon manufacturing.

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Source: ESGtoday