The miner has partnered with local woodfiber processor manager Midway (MWY.AX), opens new tab to oversee the planting and management of the farms.
Pongamia is a tree native to Australia, the seeds of which can be processed to form renewable diesel - an alternative which emits significantly lesser carbon than the fossil fuel.
Rio Tinto is in the final stages of procuring about 3,000 hectares of cleared land in Queensland for the pilot project, which aims to determine if Pongamia seed oil can help meet the company's renewable diesel demand, it said.
"While we continue to pursue electrification as the long-term solution for displacing the majority of our diesel use, the Pongamia seed pilot is an important parallel pathway that could reduce our reliance on diesel in the mid-term," said Rio Tinto chief decarbonisation officer Jonathon McCarthy.
The company is also exploring the usage of biofuels in areas where electrification could face practical limitations, it said.
