Rio Tinto signed a deal to supply bio pellets for its alumina refineries, replacing coal with biomass to cut emissions. The agreement targets a key source of industrial carbon in aluminum production, where process heat has been hard to decarbonize. Bio pellets are compressed organic material that can be burned like coal but with lower net CO2 emissions if sourced sustainably. The deal is part of Rio Tinto's push to reduce its carbon footprint across mining and refining operations. It shows how large industrial users are starting to switch fuel sources to meet climate targets. For the carbon market, this type of fuel switching could generate verified emission reductions if the biomass supply chain meets additionality and sustainability criteria. It also highlights the growing demand for bioenergy in heavy industry, which may affect biomass pricing and availability.
