SALT LAKE CITY — With a goal of continuing decarbonization, Rio Tinto Kennecott on Thursday announced it signed a 15-year virtual power purchase agreement with TerraGen for renewable energy from a newly completed wind farm in Texas.

Through a virtual power agreement, the parties enter into a long-term financial agreement where the buyer (Kennecott) agrees to ensure the project earns a fixed price when the electricity is sold in a wholesale market.

As far as details go, Kennecott will purchase 78.5 megawatts of renewable energy generated by TerraGen’s 238.5 megawatt Monte Cristo I wind power project.

Monte Cristo I is expected to generate more than 850 gigawatt-hours of clean electricity annually, enough to power approximately 81,000 homes each year.

Nate Foster, Kennecott’s managing director, said the agreement strengthens the mine’s renewable energy portfolio in the U.S. and supports the continued growth of “greenfield renewable energy generation capacity” in the electrical grid.

“It’s the latest in a series of renewable energy projects for Kennecott, following the installation of a 5MW solar plant in 2023 and a second 25MW solar plant nearing completion. We continue to look for ways to power our operations while also lowering our emissions to help achieve Rio Tinto’s long-term decarbonization goals,” Foster said in a statement.

Those goals include Rio Tinto reducing its Scope 1 (emissions produced directly by Rio Tinto) and Scope 2 (indirect emissions from the generation of purchased energy) emissions by 50% by 2030 and reaching net zero by 2050.

Globally, around 78% of Rio Tinto’s electricity use comes from renewable sources, with the company aiming to reach 90% by 2030.