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Rio Tinto Signs Deal to Replace Coal in Refineries with “Bio Pellets” – ESG Today
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Rio Tinto Signs Deal to Replace Coal in Refineries with “Bio Pellets”
Kenny Fisher
July 23, 2026
Global mining and metals company Rio Tinto announced today that it has signed a five-year offtake agreement with renewable biomass charcoal company SuperChar for the supply of locally produced bio pellets to assess its use as a replacement for coal at its alumina refineries in Gladstone, Australia, with deliveries targeted to commence in 2028.
Rio Tinto is one of the world’s biggest producers and processors of iron ore, copper, aluminum and a range of other minerals and materials. The company has committed to reduce its operational Scope 1 and 2 emissions by 50% by 2030, and to achieve net zero by 2050, with initiatives including switching to renewables at scale, electrification, developing new technologies and addressing emissions related to process heat at its refineries and processing operations.
Australia-based SuperChar develops plant-based green charcoal as a sustainable alternative to conventional wood charcoal. The company aims to replace charcoal produced from native forests and tropical hardwoods with charcoal derived from rapidly renewable biomass, using Bana Grass as the primary feedstock for its production process. Bana grass is a high-yielding perennial energy crop that can be planted and harvested using conventional sugar cane equipment.
The companies said that the agreement follows Rio Tinto’s operational trials and a feasibility study and marks next stage in assessing bio pellets as one of several options to reduce reliance on fossil fuels in alumina refining. The trials, using a range of bio pellet and coal blends demonstrated that bio pellets could replace up to 30% of the coal used to generate steam in refinery boilers under trial conditions, according to the companies.
Armando Torres, Rio Tinto Aluminium Pacific Operations Managing Director, said:
“Reducing our alumina refineries’ reliance on fossil fuel will require a mix of technologies, innovation and partnerships, and bio pellets are one of the practical options we are exploring as part of that. The recent trials and feasibility study have given us valuable insights, and this agreement allows us to take the next step in understanding how bio-pellets could work in practice and be scaled for use at our Gladstone operations.”
Under the agreement, Rio Tinto will undertake a series of operational demonstrations using bio pellet blends ranging from 5% to 50% as a supplement to coal used in boilers at its Gladstone alumina refineries. Initial use of the bio pellets is expected to begin at Rio Tinto’s Yarwun refinery, followed by increasing volumes at the company’s Queensland Alumina facility, subject to appropriate approvals and operational readiness at both sites.
Rio Tinto said that the agreement will enable the company to further assess the potential role of bio pellets, with scope to increase supply over time if the project is successful.
According to the companies, SuperChar plans to establish a bio pellet production facility in the Gladstone region, using locally grown bana grass as feedstock.
The facility will initially have capacity to produce 35,000 tons of bio pellets a year, and at full contract volumes, could reduce reported Scope 1 emissions by up to 90,000 tons of carbon dioxide equivalent annually.
Michael Palmer, SuperChar Executive Chairman, said:
“This agreement builds on several years of collaboration and demonstrates the potential for local, regeneratively grown biomass as an alternative industrial fuel, while creating opportunities for regional communities.”
Kenny Fisher
Kenny Fisher is a writer and editor covering ESG, finance, and broader business trends. Most recently, Kenny worked as a content writer at Oanda, a leading online currency trading firm. His articles have been featured on major business and financial online media platforms.
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