A nursery with rows of potted plants, labeled with yellow tags. The plants are mostly green with small, yellow flowers.

Investing in biofuels

18 September 2024 

Rio Tinto will develop Pongamia seed farms in Australia as part of a new biofuels pilot to explore the potential of Pongamia seed oil as a feedstock for renewable diesel, a cleaner alternative to traditional fossil fuels.

We’re in the final stages of acquiring about 3,000ha of cleared land near Townsville in north Queensland to establish the pilot farms. Working with our partners Midway Limited, we’ll plant approximately 750,000 Pongamia saplings on land historically cleared of native vegetation and used for hay, cattle grazing or sugar cane. The Pongamia trees will take 4–5 years to mature and produce seeds, which can be harvested annually. The trees and soil remain intact to store carbon. The pilot will study growth conditions, measure seed oil yields, and assess the viability of Pongamia seed oil as a renewable diesel feedstock.

Biofuel crop farming trial for renewable diesel production in Australia

Why renewable diesel?

Renewable diesel is a drop-in replacement to fossil diesel fuel. It can be made from fats and oils and has lower life-cycle emissions.

The most efficient and cost-effective long term-solution to reduce fossil diesel use in our mining fleet and equipment is electrification, however we’re not expecting mass deployment of battery electric haul trucks throughout our operations to be technically or commercially feasible before 2030. We’re collaborating with BHP, Caterpillar and Komatsu to pilot battery haul truck technology in the Pilbara.

We’re developing complementary pathways to more immediately reduce diesel-sourced emissions, including the use of biofuels, while we continue to invest in projects to support electrification. We have transitioned our US operations in California and Utah to renewable diesel but Australia currently lacks a sufficient biofuel feedstock industry to meet domestic demand. This pilot represents an important step in helping to bridge that gap and advance our decarbonisation goals.

What is Pongamia?

  • Pongamia is a medium-sized, fast-growing tree, that is native in northern Australia. 
  • Pongamia produces large numbers of seeds, which are rich in oil and protein. After the oil has been extracted, the seed pod and meal can be processed for other uses (e.g. cattle feed). 
  • Pongamia seeds can be harvested every year using a ‘shake and catch’ system. The trees and soil remain intact to store carbon.
  • Pongamia produces its own nitrogen – minimising the need for nitrogen-based fertilisers. 
  • Pongamia is drought tolerant, salinity and flood resistant, and, once established, has low water, fertilisation and pest control requirements.

Contact information

For more details about the Pongamia farm pilot, contact Midway Limited.

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