Rio Tinto SuperChar bio pellet deal
Analysis based on 7 articles · First reported Jul 21, 2026 · Last updated Jul 24, 2026
The deal supports Rio Tinto's decarbonization strategy and could reduce its operational emissions, potentially improving its environmental credentials and long-term cost structure. It also creates a new supply chain for bio pellets, benefiting SuperChar and regional agriculture in Australia — Queensland.
Rio Tinto has signed a five-year offtake agreement with Australian bioenergy company SuperChar for the supply of locally produced bio pellets to be used at its alumina refineries in Gladstone, Australia — Queensland. Deliveries are targeted to begin in 2028. The agreement follows operational trials and a feasibility study that demonstrated bio pellets could replace up to 30% of the coal used to generate steam in refinery boilers. Under the deal, Rio Tinto will conduct further demonstrations using blends of 5% to 50% bio pellets. SuperChar plans to build a production facility in Gladstone with an initial capacity of 35,000 tonnes per annum, using locally grown bana grass. At full contract volumes, the arrangement could reduce Rio Tinto's reported Scope 1 emissions by up to 90,000 tonnes of CO2 equivalent annually. Initial use is planned at Rio Tinto's Australia — Yarwun, Queensland refinery, with later expansion to Australia — Queensland, subject to regulatory approvals and operational readiness.
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