A ground-breaking program initiated two years ago has reached a significant milestone, with mining giant Rio Tinto (ASX: RIO) and Japanese trading house Sumitomo giving the green light for the development of a unique hydrogen plant in Queensland. The Australian government has provided substantial funding support for the project, and the construction of the “first-of-a-kind” hydrogen plant in Gladstone is set to pave the way for potential global applications. The project is part of Rio Tinto’s efforts to investigate the feasibility of decarbonizing its global alumina refining operations by using renewable hydrogen as a substitute for natural gas. Supported by ARENA (Australian Renewable Energy Agency), the pilot plant aims to demonstrate the viability of hydrogen usage in the calcination process, a crucial step in reducing carbon dioxide emissions in the alumina refining industry.
ARENA’s Major Funding Boost
Rio Tinto’s ambitious hydrogen study was recognized by the Australian government in 2021 when ARENA provided $579,786 in funding for the $1.2 million feasibility study. Building on this, ARENA has now granted a co-funding boost of $32.1 million for the proposed Yarwun Hydrogen Calcination Pilot Demonstration Program. The program’s objective is to validate the use of hydrogen in the calcination process, where hydrated alumina is heated to high temperatures of up to 1,000 degrees Celsius. This critical support from ARENA underscores the potential of hydrogen technology in reducing emissions and its role in the global energy transition.
Global Potential and Decarbonization Goals
Rio Tinto Aluminium Pacific Operations managing director, Armando Torres, emphasized that the success of the pilot plant could lead to its global implementation. This ambitious program aims to produce around 6,000 tonnes of alumina annually while reducing Yarwun’s carbon dioxide emissions by approximately 3,000 tonnes per year. The project includes the installation of a 2.5MW on-site electrolyser and retrofitting one of Yarwun’s four calciners to operate with a hydrogen burner. The use of green hydrogen is estimated to potentially reduce emissions by 500,000 tonnes per year, equivalent to taking 109,000 internal combustion engine cars off the road. Construction of the hydrogen plant and calciner is scheduled to commence in 2024, with operations targeted to begin by 2025. Rio Tinto has committed to achieving net-zero emissions by 2050 and aims to reduce Scope 1 & 2 emissions by 50% by 2030 from 2018 levels.
Sumitomo’s Role in the Gladstone Project
Sumitomo Corporation, through its Energy Innovation Initiative (EII) established in April 2021, will play a crucial role in the Gladstone project. The Japanese company will own and operate the electrolyser at the Yarwun site, supplying up to 250 tonnes of hydrogen annually to Rio Tinto. Seiji Kitajima, Director of Sumitomo Corporation EII, highlighted the significance of demonstrating real-world applications of hydrogen in industrial settings to achieve carbon neutrality by 2050. Sumitomo has a history of involvement in hydrogen projects in the Gladstone Region, including the Gladstone H2 Ecosystem initiative, exploring opportunities for a hydrogen ecosystem with a focus on domestic offtake, mobility solutions, and potential large-scale export opportunities.
Pioneering Hydrogen Technology for a Sustainable Future
The collaboration between Rio Tinto and Sumitomo to develop the first-of-a-kind hydrogen plant in Gladstone marks a significant stride in the global hydrogen landscape. With the support of ARENA and the Australian government, this pioneering project has the potential to revolutionize the alumina refining industry and demonstrate the viability of hydrogen technology in reducing emissions. As construction begins in 2024 and operations are targeted for 2025, the world will be watching the outcomes of this innovative endeavour, which could pave the way for broader applications of hydrogen technology in various industries, accelerating the journey towards a sustainable and low-carbon future.
