Rio Tinto will develop seed farms in Australia to evaluate the potential of Pongamia seed oil as a feedstock for renewable diesel.
Pongamia is an Australian legume tree that produces oil-rich seeds which can be processed into renewable diesel, offering a significant reduction in carbon emissions.
Rio is in the final stages of acquiring about 3000 hectares of cleared land near Townsville in Queensland to establish seed farms to analyse growth conditions and measure seed oil yields.
“Diesel accounts for around 10 per cent of our emissions footprint in Australia,” Rio Tinto chief decarbonisation officer Jonathon McCarthy said.
“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. It also presents a compelling option for other applications that are challenging to electrify, including blasting and non-haul equipment.”
McCarthy said Australia doesn’t have a biofuel feedstock industry that’s sufficient enough 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,” he said.
The major miner has partnered with Midway, a woodfibre processor manager, to oversee the planting and management of the Pongamia seed farms.
As part of the biofuels pilot, Midway will engage with nurseries, agricultural experts and research organisations while prioritising opportunities for Traditional Owners and local communities.
“We are very excited to be partnering with Rio Tinto on this innovative pilot project,” Midway managing director Tony McKenna said. “We are proud to be playing an important role in helping develop a sustainable domestic biofuel industry.
“The collaboration continues the growth of our position as trusted providers with the capability and experience to deliver a variety of projects for emitters who are committed to seeking alternative solutions to reduce their net emissions.”
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.