Federal backing for Rio Tinto refinery hydrogen pilot

Marion Rae | July 12, 2023

A major emitter, Rio Tinto’s alumina refinery in Queensland, has attracted federal support to switch gas use for renewable hydrogen.

More than 17,000 workers in Australia’s emissions-intensive aluminium industry, which brings in around $14 billion in export revenue each year, are on the frontline of efforts to curb climate change by slashing greenhouse gas emissions.

Minister for Climate Change and Energy Chris Bowen on Wednesday announced an investment of $32.1 million in a world-leading trial that will help strip emissions from the aluminium supply chain.

“Australia is the world’s largest exporter of alumina and cutting emissions from our alumina refining will ensure this industry can continue to thrive in a decarbonising global economy,” Mr Bowen said.

Potentially greening everything from cars to beer cans, the project is expected to be commissioned in 2025 and is at the heart of ending the industrial heartland’s dependence on coal and gas.

Rio Tinto has been working with the Australian Renewable Energy Agency (ARENA) on using clean hydrogen to replace gas in alumina refining at the Yarwun refinery in Gladstone. 

The resources giant, Queensland’s biggest energy user, has also partnered with Japan’s Sumitomo Corporation on the hydrogen pilot plant at Yarwun.

The new investment, through ARENA, will help install a 2.5 megawatt onsite electrolyser, a hydrogen storage facility and a hydrogen-capable burner to retrofit one of the refinery’s large industrial ovens used in alumina refining.

ARENA CEO Darren Miller said the world-first pilot could pave the way for deployment across the industry and underscores the importance of low-cost green hydrogen to decarbonise our largest industrial emitters. 

Alumina refining accounts for about three per cent of Australia’s emissions. Using renewable hydrogen could eliminate emissions from the calcination process, which represents almost a third of alumina refining emissions.

Sumitomo will own and operate the electrolyser, which has a production capacity of more than 250 tonnes of hydrogen annually, and supply the hydrogen to Rio Tinto directly. 

The investment is separate to the $2 billion Hydrogen Headstart program that will invest in two or three major projects nationwide.

“ARENA will continue to support projects at this scale as we develop other larger programs, such as Hydrogen Headstart,” Mr Miller said.