Rio Tinto Signs Biochar Sales Agreement for Queensland Refinery Coal Replacement

A $30 million biochar facility proposed for central Queensland has signed a sales agreement with Rio Tinto as the miner investigates ways to replace coal.

Rio Tinto said it would use bana grass bio pellets produced by Australian company SuperChar Limited to further assess how it could substitute coal in boilers at its emissions-intensive Queensland refineries.

The initial five-year agreement would see 35,000 tonnes of the bio pellets supplied in 2028, subject to approvals.

Mr McDougall said a feasibility study had already proved the coal used in boilers at its Gladstone refineries could be replaced by a blend of up to 30 per cent bio pellets.

The company plans to assess bio pellet blends of up to 50 per cent under the agreement, and it is one of several solutions Rio Tinto is exploring to reduce fossil fuel use in alumina refining.

SuperChar is proposing to produce the bana grass charcoal pellets in Boynedale, about 50 kilometres from Gladstone.

Bana grass is a perennial, fast-growing semi-tropical grass.

SuperChar still needs Gladstone Regional Council approval, with the company lodging its development application earlier this year.

The company plans to make the biochar by heating the bana grass at high temperatures with limited oxygen — a process known as pyrolysis.

"There are no chemicals involved, there are no waste products involved, so, environmentally, it's a very friendly process," Mr Palmer said.

He said, in addition to the 35,000 tonnes of bio pellets, the facility would produce a further 25,000 tonnes of charcoal briquettes a year, which could be used for cooking.

Mr Palmer said the grass could also be used to make an animal feed product, and was used internationally in Central Africa and Central America as cattle feed.

"Because of the high protein content of the bana grass, we can produce a 15–18 per cent protein animal pellet," he said.

Mr Palmer said this would be the company's first production facility.

It also has bana grass plantations in Ingham and Mossman in Far North Queensland.

Potential employment boost

The initial processing plant and farming activities are expected to provide employment for about 25 people.

Farmer Paul Whiteman is working with SuperChar and, in May, planted 12 hectares of the crop to trial on his property in the Boynedale area.

Mr Whiteman said he hoped the project would go ahead to improve local employment opportunities and attract young families to the area, as local schools faced dwindling enrolments.

"A lot of people have to seek employment off-farm, and this might be able to bring some of those people back onto farm and save them having to do the 45-minute drive in and out of town each day," he said.

Mr Whiteman said while the trial crop was planted late in the season, it was starting to shoot as soil temperatures were warming.

"In the last couple of weeks, it's really started to shoot," he said.

Mr Palmer said the project was "well advanced in terms of funding", but the company was seeking government support.