Rio Tinto to develop biofuel crop trial as it aims for renewable diesel production in Australia

HOUSTON (ICIS)–Australian global miner Rio Tinto has announced it will develop Pongamia seed farms in Australia as part of a new biofuels pilot and explore the potential of Pongamia seed oil as a feedstock for renewable diesel, a cleaner alternative to traditional fossil fuels.

The company also wants to determine if it can contribute to Rio Tinto’s renewable diesel needs while potentially contributing to the growth of a new biofuel sector in Australia.

Pongamia is a legume tree native to Australia which is fast-growing, resilient and produces oil-rich seeds that can be processed into renewable diesel with the seed able to be harvested annually, leaving the trees and soil intact to store carbon dioxide. ​

Rio Tinto said it is in the final stages of acquiring approximately 3,000 hectares of cleared land near Townsville in north Queensland to establish farms to study growth conditions and measure seed oil yields.

It has partnered with Midway Limited, to oversee the planting and management of the Pongamia seed farms and who will also engage with nurseries, agricultural experts and research organizations throughout the pilot.

As part of its ongoing efforts to achieve net-zero Scope 1 and 2 carbon emissions by 2050, Rio Tinto is actively exploring the potential of biofuels in the low-carbon energy mix.

The company said it sees biofuels as an avenue to reduce reliance on fossil diesel, while fleet electrification technologies mature. It is also investigating how biofuels could be used in scenarios where electrification may face practical limitations.

“Diesel accounts for around 10 percent of our emissions footprint in Australia. 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 that could reduce our reliance on diesel in the mid-term,” said Jonathon McCarthy, Rio Tinto Chief Decarbonisation Officer.

“Australia does not yet have a biofuel feedstock industry sufficient to meet domestic demand. A sustainable biofuels industry here could enhance the region’s fuel security, create local economic opportunities and contribute to emissions reductions targets.”

The company said this pilot follows a smaller-scale trial at Rio Tinto Gove operations in the Northern Territory where Pongamia saplings were planted to learn more about their response to low soil quality, heat and other climatic conditions in northern Australia.​