Rio Tinto has entered into a 15‑year virtual power purchase agreement with TerraGen that will deliver 78.5 MW of wind power from the Monte Cristo I wind farm in Texas to its Kennecott copper operation in Utah. The agreement, signed on November 14 2025, locks in a renewable energy supply that matches the mine’s growing electricity demand and provides price stability for the next decade.
The Monte Cristo I project has a total capacity of 238.5 MW and is expected to generate more than 850 GWh of clean electricity annually, enough to power roughly 81,000 homes. By purchasing 78.5 MW, Rio Tinto will secure a substantial portion of the mine’s energy mix, complementing the 5 MW solar plant installed in 2023 and a second 25 MW solar array that is nearing completion. The deal is a key step in the company’s broader decarbonization plan, which targets a 50 % reduction in Scope 1 and 2 emissions by 2030, net‑zero emissions by 2050, and 90 % renewable electricity by 2030.
Nate Foster, Managing Director of Rio Tinto Kennecott, said the agreement “strengthens Rio Tinto’s renewable energy portfolio in the United States and supports the continued growth of greenfield renewable energy generation capacity in the U.S. grid.” He added that the deal is part of a series of renewable projects that help the mine lower emissions and move toward the company’s long‑term decarbonization goals. The VPPA also positions Rio Tinto as a leader in sustainable mining, reinforcing its reputation among ESG‑focused investors and aligning with industry trends where major miners are investing heavily in renewable power to secure long‑term supply and reduce carbon intensity.
The 15‑year term provides a predictable cost structure, mitigating exposure to volatile electricity prices and supporting operational efficiency. By securing renewable power at a fixed rate, Rio Tinto can better manage its energy budget, reduce its carbon footprint, and demonstrate progress toward its net‑zero commitments—factors that enhance the company’s competitive position and appeal to investors prioritizing sustainability. The deal also signals Rio Tinto’s continued investment in green infrastructure, reinforcing its leadership in the transition to low‑carbon mining operations.
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