Rio Tinto Plc’s Kennecott operation inked a 15-year virtual power purchase agreement (VPPA) with TerraGen.

Details

The company is securing 78.5 MW of renewable energy from the 238.5 MW Monte Cristo I Windpower project in Texas, which officially began commercial operations Thursday.

The move reflects the advancement of Kennecott’s operation decarbonization efforts.

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The deal expands Rio Tinto’s U.S. renewable energy portfolio and supports the growth of greenfield renewable generation capacity on the national grid.

Rio Tinto Kennecott Managing Director Nate Foster said, “It’s the latest in a series of renewable energy projects for Kennecott, following the installation of a 5MW solar plant in 2023, and a second 25MW solar plant nearing completion.”

Third-Quarter Production Update

Last month, the company reported its third-quarter fiscal 2025 Pilbara iron ore production of 84.1 million tonnes (Mt), flat year over year (Y/Y).

Pilbara iron ore shipments (consolidated basis) also remained stable Y/Y at 84.3Mt in the quarter. Notably, Pilbara achieved its second-highest third-quarter shipments since 2019.

For fiscal 2025, Rio now expects Pilbara shipments to be at the lower end of guidance of 323 to 338 Mt.

Price Action: RIO shares were trading lower by 1.07% to $70.28 premarket at last check Thursday.

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