Rio Tinto trials renewable diesel in iron ore operations

Renewable diesel has helped fuel Rio Tinto’s Pilbara iron ore operations for the first time, with the completion of a successful trial of biofuel across its network of Western Australian ports, railways and mines.

The trial, the first of its kind for Rio Tinto in Australia, was conducted in partnership with leading global renewable diesel producer Neste and Australian fuel supplier Viva Energy.

Neste allocated 10 million litres of renewable diesel from used cooking oil for the trial, which has provided Rio Tinto with a greater understanding of how renewable diesel could be integrated across its Pilbara operations.

The fuel was shipped from Singapore to Rio Tinto’s Parker Point fuel terminal in Dampier by Viva Energy and blended portside with fossil diesel to create a mix with about 20 per cent renewable diesel.

It was then distributed across Rio Tinto’s Pilbara iron ore operations for use in rail, marine, blasting, haul trucks, surface mining equipment and light vehicles.

The four-week trial in January and February 2025 provided an understanding of how renewable diesel use could be scaled up across Rio Tinto’s Australian operations in the future, giving key insights into the bulk renewable diesel supply chain, importation and blending processes.

It also reduced Rio Tinto’s Scope 1 emissions by about 27,000 tonnes of direct greenhouse gas emissions, which is as much as the tailpipe emissions from 6,3002 cars for a year.

“Diesel makes up about 70 per cent of the total carbon emissions from our Pilbara iron ore operations. While electrification is the ultimate longer-term solution for repowering the majority of our fleet, we’re also exploring biofuels as a complementary and nearer-term solution,” said Rio Tinto Managing Director Rail, Port and Core Services Richard Cohen.

“Through this trial with Neste and Viva Energy, we’ve gained valuable insights into how renewable diesel can help bridge the gap to widespread electrification as well as for circumstances where electrification may not be suitable,” he said.

Neste Head of Commercial APAC Renewable Products Ee Pin Lee said Neste MY Renewable Diesel is presently a readily available solution for reducing greenhouse gas emissions.

“Building on the successful partnership in the US, the agreement in Australia reinforces our commitment to support our customers and demonstrates the capabilities of renewable diesel across a wide range of applications,” he said.

“This milestone signifies the continuous collaboration with Rio Tinto and we look forward to further expanding our cooperation.”

Drop-in biofuels like renewable diesel are, according to Viva Energy Chief Strategy Officer Lachlan Pfeiffer, important tools in the energy transition.

“They help companies reduce emissions without the cost of replacing equipment and infrastructure,” he said.

“This trial effectively demonstrated the critical role renewable diesel is going to play in reducing the carbon footprint of Australia’s heavy industry. Viva Energy is working alongside key partners like Rio Tinto to help them to identify the right low-carbon solution to meet their specific business needs.”

Rio Tinto is actively exploring the potential of biofuels as part of its ongoing efforts to achieve its Scope 1 and 2 emissions reduction targets of 50 per cent by 2030 and net zero by 2050.

This trial builds on the successful transition at the company’s Boron and Kennecott operations in the US, where 11 per cent of its total global fossil diesel consumption has been replaced with renewable diesel.

Rio Tinto is also developing a Pongamia seed farm in North Queensland as part of a biofuels pilot to contribute to the growth of the Australian biofuels industry.

In other news, Viva Energy missed full-year profit expectations as underlying profit dropped 20 per cent to $254.2 million in 2024.

Group fuel sales, however, were up 4 per cent to 16.8 billion litres.

Total convenience sales, including tobacco, fell 4 per cent.

“Group performance was negatively impacted by lower demand within our convenience business due to cost-of-living pressures and illicit tobacco trade, coupled with high inflation lifting the cost of doing business,” said Scott Wyatt, Viva Energy CEO.

“Regional refining margins also declined in the second half of the year, triggering federal government support in the third quarter.”