Yindjibarndi Energy Corporation (YEC), a subsidiary of Ayala-led ACEN Corporation has inked a preliminary deal with London-headquartered Rio Tinto for development collaboration on the latter’s targeted energy usage shift to renewable energy in its Australian mining operations.

In a press statement, ACEN indicated that its memorandum of understanding (MOU) with the British-Australian mining and metals company will primarily target RE developments in the Pilbara region of Western Australia,” which will correspondingly cater to the energy needs of Rio Tinto’s mining operations in that area.

“Rio Tinto and YEC will study and evaluate a range of opportunities including wind and solar power as well as battery energy storage systems,” the Ayala firm emphasized, adding that “the initial focus is on rapidly exploring the potential development of a solar power generation facility for the supply of energy to Rio Tinto.”

ACEN said the propounded final agreement with the multinational firm will be both for power supply agreement (PSA) and co-development of the RE projects that will then replace Rio Tinto's four gas-fired power stations in Pilbara.

Tinto Iron Ore Chief Executive Simon Trott conveyed that the intent of their business tie-up with YEC shall be on “repowering our Pilbara operations with renewable energy through the end of this decade and beyond by replacing gas and diesel with clean energy alternatives.”

In ACEN’s estimate, it will need between 600 to 700 megawatts of renewable energy capacity to displace the existing gas-fed facilities that the British-Aussie firm has been using through the network of its operations.

Of the planned projects, it was qualified that solar will be the initial focus of their presumptive collaboration – with an primary target of 300MW.

“The company is currently assessing the development of approximately 300MW of solar projects. The collaboration opportunities currently being explored by Rio Tinto and YEC if progressed, would be complementary to renewable energy developments on Rio Tinto Iron Ore’s electricity grid,” ACEN stated.

Trott opined that solar and wind may thrive as the perfect-fit solution to their planned clean energy switch, further noting that “Pilbara is blessed with abundant year-round sunshine and strong winds at night, making it one of the most attractive places in the world to harness solar and wind power for energy generation.”

In turn, ACEN International CEO Patrice Clausse expounded that their MOU with Rio Tinto “signifies more than just a partnership; it's a testament to the shared vision of sustainable energy development on Yindjibarndi Ngurra.”

He described the preliminary agreement as “the perfect blend of traditional significance and modern technology, designed to harness the limitless potential of the Pilbara's sun and wind, while respecting the deep-rooted connection of the Yindjibarndi people with their land.”

When it comes to RE developments, the Ayala energy company has practically been in bed with different partners across its offshore markets and even at its home base in the Philippines, but its choice for a ‘business marriage’ always gives premium to track record and experience as well as co-venturers’ profound concern for the environment apart from deep pockets.

In the case of YEC, it had cast 750MW capacity of stage 1 installations amalgamating RE projects on solar, wind and energy storage systems; and its business deal with Rio Tinto is planned to be integrated in that phase of developments.