Rio Tinto Signs Power Purchase Agreement with Yindjibarndi Energy
In a landmark move for Australia’s renewable energy sector and Indigenous economic empowerment, mining giant Rio Tinto has signed a 30-year Power Purchase Agreement (PPA) with the Yindjibarndi Energy Corporation (YEC). The agreement secures 100% of the electricity from the first stage of the new Jinbi Solar Project, which will be built on Yindjibarndi country in the Pilbara region of Western Australia.
This long-term partnership marks a significant step in Rio Tinto’s strategy to decarbonize its iron ore operations and underscores a new era of collaboration with Traditional Owners.
Rio Tinto Yindjibarndi Energy: A Landmark Deal
The PPA is a cornerstone of the Jinbi Solar Project, an ambitious Aboriginal-led initiative. YEC, a strategic partnership between the Yindjibarndi Aboriginal Corporation and international renewable energy firm ACEN Corporation, has now reached financial close on the project, allowing full-scale construction to commence.
Under the terms of the agreement, Rio Tinto will purchase all power generated by the solar farm to help supply its Pilbara operations. This move is critical for reducing the company’s reliance on conventional energy sources and meeting its climate targets. The Jinbi Solar Project is expected to begin commercial operations by mid-2028.
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The Jinbi Solar Project at a Glance
Located in the heart of the Pilbara, the Jinbi Solar Project is a key component of YEC’s broader vision to develop more than 3 GW of renewable energy capacity across the region.
Key details of the project include:
* Capacity: The project will be developed in stages, with an initial capacity of 75 MW and the potential to expand to 150 MW.
* Construction: Following the successful financial close, YEC has issued a notice to proceed to its EPC contractor, DT Infrastructure, and accommodation provider, Rapid Camps. Early works are already underway.
* Location: The facility will be situated approximately 55 kilometers south of Karratha on Yindjibarndi Ngurra (country).
As detailed in a press release from Rio Tinto, this project is the first to reach financial close under the YEC partnership, which was formed just three years ago.
A New Model for Partnership and Decarbonization
This agreement is more than a simple energy transaction; it represents a powerful model for co-existence and mutual benefit between industry and Indigenous communities. By partnering directly with YEC, Rio Tinto is not only securing a source of clean energy but also supporting the Yindjibarndi people’s aspirations for long-term economic independence and stewardship of their land.
The PPA builds on a Memorandum of Understanding signed between the two parties in 2023, demonstrating a deepening relationship focused on sustainable development. The deal sets a precedent for how major resource companies can work collaboratively with Traditional Owners to achieve shared environmental and economic goals.
As reported by outlets like PV Magazine Australia and PV Tech, the Jinbi project is a significant development in Australia’s utility-scale solar landscape, particularly given its Indigenous-led ownership structure.
The successful execution of this PPA paves the way for YEC to advance its extensive portfolio of wind, solar, and battery storage projects, transforming the Pilbara into a major hub for renewable energy generation while ensuring the Yindjibarndi people are at the forefront of this transition.
