“We have put the energy transition at the heart of our business strategy, and this is one of the ways we’re working towards decarbonising our operations,” Torres said.

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Diversified mining companies like Rio use huge amounts of energy to extract minerals from the ground and process them for sale, running 24-hour operations with heavy haulage trucks, crushing systems, conveyors, refineries and processing plants. They face enormous challenges to switch their operations from fossil fuel use to non-polluting sources.

The hydrogen produced for the calcination plant will initially be offset with renewable certificates, but Sumitomo – which will own and operate the hydrogen electrolyser – is keen to develop a green hydrogen industry in the region along with Gladstone Ports Corp, Orica, Origin Energy, Australian Gas Networks and Central Queensland University.

Green hydrogen, made by using a renewable-energy-powered electrolyser to split water into hydrogen and oxygen, is seen as a viable alternative to carbon-emitting fossil fuels in heavy transport, heating and power generation, and a variety of other manufacturing processes.

ARENA chief Darren Miller said the technology was a “promising” option for decarbonising one of the country’s most emissions-intensive industries.

“If this pilot project is successful, it could be a game changer for Australian alumina production, paving the way for deployment across the industry,” he said.

Australia is the world’s largest exporter of alumina, the mineral feedstock for aluminium production, with the industry contributing about $7.5 billion to the nation’s bottom line. Hydrogen calcination is one of four technologies that could reduce emissions from refineries by up to 98 per cent, Miller said.

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