Rio Tinto To Transition To Renewable Diesel From Fossil Fuels At Kennecott Copper In Utah

(RTTNews) - Rio Tinto Group (RIO, RIO.L), a mineral processing company, announced Tuesday that it will replace its entire fossil diesel consumption with renewable diesel at its Kennecott copper operation in Utah from 2024.

The decision to transition to renewable diesel comes after a successful 7-month trial at Kennecott's Bingham Canyon mine. The trial was conducted in collaboration with Cummins to test renewable diesel in different operational environments and on different equipment.

The company is targeting reductions in Scope 1 and 2 carbon emissions of 50 percent by 2030 and net zero by 2050.

Kennecott's fleet of 90 haul trucks and all heavy machinery will transition to renewable diesel in the first quarter of 2024 along with consumption from the concentrator, smelter, and refinery.

The transition is expected to reduce Kennecott's Scope 1 carbon emissions by approximately 495,000 tons of CO2 equivalent per annum. This is comparable to eliminating the annual emissions of more than 107,000 passenger cars.

The renewable diesel is made from renewable biogenic materials that are sourced in the U.S. and will be supplied through the existing diesel supply chain, as part of a continuing partnership between Kennecott and HF Sinclair.

In premarket activity, Rio Tinto shares are trading at $68.71, down 0.49% on the New York Stock Exchange.