Rio Tinto's Kennecott operation has signed a 15-year virtual power purchase agreement (VPPA) with TerraGen for renewable energy from a newly completed wind farm in Texas. The agreement, announced on November 14, 2025, represents a significant step in the company's decarbonization objectives.

Agreement Details

Under the VPPA, Rio Tinto will purchase 78.5 megawatts (MW) of renewable energy generated by TerraGen's 238.5 MW Monte Cristo I Windpower project. Commercial operations for the wind farm were commemorated with a ribbon-cutting ceremony on November 14, 2025.

The virtual power purchase agreement structure allows Rio Tinto to secure renewable energy credits from the Texas wind farm to support its operations while contributing to the expansion of renewable energy capacity in the United States grid.

Kennecott's Renewable Energy Portfolio

This wind power agreement represents the latest addition to a series of renewable energy projects for Kennecott. The operation previously installed a 5MW solar plant in 2023 and has a second 25MW solar plant nearing completion.

Rio Tinto Kennecott Managing Director Nate Foster stated that 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. Foster emphasized that the company continues to seek ways to power operations while reducing emissions to help achieve Rio Tinto's long-term decarbonization goals.

Corporate Climate Commitments

Rio Tinto has established specific targets for emissions reduction as part of its environmental strategy. The company has committed to reducing its Scope 1 and 2 emissions by 50% by 2030 and achieving net zero emissions by 2050.

Currently, approximately 78% of the electricity Rio Tinto uses globally comes from renewable sources. The company is making investment and supply decisions designed to increase this percentage to around 90% by 2030.

Strategic Impact

The Monte Cristo I Windpower project agreement demonstrates Rio Tinto's approach to expanding its renewable energy procurement while supporting the development of new clean energy infrastructure. The 15-year term of the virtual power purchase agreement provides long-term renewable energy security for the Kennecott operation.

The deal follows Rio Tinto's pattern of investing in renewable energy projects across its operations, with the Kennecott facility serving as a focal point for the company's renewable energy initiatives in the United States. The agreement with TerraGen adds substantial renewable energy capacity to Rio Tinto's portfolio, with the 78.5 MW commitment representing a significant portion of the total 238.5 MW Monte Cristo I project capacity.

The virtual power purchase agreement structure allows Rio Tinto to support renewable energy development without requiring direct ownership of the generation assets, while still securing the environmental benefits and renewable energy credits associated with the wind power generation.

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