The Texas-Utah Wind Connection: Rio Tinto Signs Virtual PPA for 78.5 MW in Renewables
Global mining firm Rio Tinto is going to claim renewable energy offsets for its Utah copper operation through a 15-year virtual power purchase agreement (PPA) with developers of a newly commissioned wind farm in Texas.
Rio Tinto’s Kennecott will claim 78.5 MW in carbon-free renewable energy produced by Terra-Gen’s 238.5-MW Monte Cristo I wind farm in Hildago County. Under these types of PPAs, the corporate buyer does not receive the wind power directly, but invests in the project and uses credits to offset its own energy use and emissions.
Kennecott is one of the biggest commercial copper producers in the U.S. It has had numerous owners in its century-plus history and was acquired by Rio Tinto in 1989.
The Monte Cristo I is expected to generate more than 850 GWh of renewable electricity annually, equivalent to powering approximately 81,000 homes a year. The facility’s capacity has been contracted to two corporate buyers through long-term power purchase agreements.
Terra-Gen, which developed the wind farm, is jointly owned by Masdar and Igneo Infrastructure Partners.
“It is an honor to celebrate the hard work and dedication of the hundreds of men and women who made the commissioning of the Monte Cristo wind project possible,” said John O’Connor, Chief Financial Officer for Terra-Gen, in a statement. “This project underscores Terra-Gen’s commitment to expanding access to renewable energy across Texas and the U.S. and providing clean, sustainable power, and investing in our local communities.”
Construction of Monte Cristo I created jobs for 280 people during the work. Long-term benefits could include more than $100 million in property taxes, landowner payments and other local contributions during the project’s life, according to the developer.
“We welcome Terra-Gen’s continued investment in Hidalgo County,” said Richard F. Cortez, Hidalgo County Judge. “This development represents more than clean, renewable energy, it’s an investment in our people and our long-term economic growth. By creating high-quality jobs, generating millions in local spending, and supporting essential public services, projects like this help us develop and attract human capital while positioning Hidalgo County as a leader in sustainable progress.”
Kennecott Utah Copper LLC, a division of Rio Tinto, is a mining, smelting and refining company based in South Jordan, Utah. It reportedly produces about 1% of the world’s copper.
One of the nation’s largest open-pit copper mining operations, Kennecott’s Bingham Canyon mine suffered a major landslide in 2013. The Bingham pit reportedly has produced more than 19 million short tons of copper in its century-plus history.
Although corporate renewable PPA buyers don't receive the carbon-free electricity directly--a practice that detractors call "greenwashing"--they defend it by noting the investment finances decarbonizing projects for the overall grid. A group of Republican legal and political leaders have challenged the practice of virtual PPAs and renewable energy credits as not achieving the goals of clean energy advocates.
About the Author
Rod Walton, EnergyTech Managing Editor
Managing Editor
For EnergyTech editorial inquiries, please contact Managing Editor Rod Walton at [email protected].
Rod Walton has spent 17 years covering the energy industry as a newspaper and trade journalist. He formerly was energy writer and business editor at the Tulsa World. Later, he spent six years covering the electricity power sector for Pennwell and Clarion Events. He joined Endeavor and EnergyTech in November 2021.
Walton earned his Bachelors degree in journalism from the University of Oklahoma. His career stops include the Moore American, Bartlesville Examiner-Enterprise, Wagoner Tribune and Tulsa World.
EnergyTech is focused on the mission critical and large-scale energy users and their sustainability and resiliency goals. These include the commercial and industrial sectors, as well as the military, universities, data centers and microgrids. The C&I sectors together account for close to 30 percent of greenhouse gas emissions in the U.S.
He was named Managing Editor for Microgrid Knowledge and EnergyTech starting July 1, 2023
Many large-scale energy users such as Fortune 500 companies, and mission-critical users such as military bases, universities, healthcare facilities, public safety and data centers, shifting their energy priorities to reach net-zero carbon goals within the coming decades. These include plans for renewable energy power purchase agreements, but also on-site resiliency projects such as microgrids, combined heat and power, rooftop solar, energy storage, digitalization and building efficiency upgrades.