Sept 18 (Askume) – Mining giant Rio Tinto (AX.AX) said on Wednesday it will develop a seed farm in Australia to explore the potential of water chestnut oil as a renewable diesel feedstock.
The miner has partnered with local wood fibre processing manager Midway (MWY.AX) to oversee the cultivation and management of the farm .
The seeds of a tree native to Australia can be processed into renewable diesel, an alternative that emits less carbon than fossil fuels.
Rio Tinto said the pilot program, which is in the final stages of purchasing about 3,000 hectares of cleared land in Queensland, is designed to determine whether aquamarine oil could help meet the company’s renewable diesel needs.
Rio Tinto’s main decarbonisation unit said: “While we continue to pursue electrification as a long-term solution to replace most diesel use, the Pangami Seed pilot is an important parallel path to reduce our reliance on diesel in the medium term.”
The company said it is also exploring the use of biofuels in areas where there may be practical barriers to electrification.
