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Rio Tinto Turns to Farming in Quest to Curb Polluting Diesel

(Bloomberg) -- Rio Tinto Group., the world’s second-biggest miner, will develop seed farms in Australia under efforts to test the potential of biofuels to curb diesel consumption.

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The company intends to acquire about 3,000 hectares (7,413 acres) of land near Townsville, in northern Queensland, and to examine the possible use of Pongamia seed oil as a feedstock to develop substitute fuels.

“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,” Chief Decarbonization Officer Jonathon McCarthy said Wednesday in a statement.

Biofuels could provide an option for “applications that are challenging to electrify, including blasting and non-haul equipment,” he said.

Rio consumed 1.6 billion liters of diesel at its major operations last year and spent a total of $1.6 billion on the fuel, according to the producer. Diesel is used to power more than 700 haul trucks, 350 locomotives and about 800 other vehicles, accounting for around 12% of Rio’s Scope 1 and 2 emissions, the company said.

Reducing industrial pollution, including in mining, is seen as a significant challenge. Emissions from the global industry sector have increased faster than in any other segment since 2000, Systems Change Lab, a research organization, said in a report last year.

Rio is targeting a 50% reduction of operational emissions by 2030 on 2018 levels, and aims to hit net zero by mid-century.

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