Iberdrola is to supply green energy to BHP’s Olympic Dam mining operation in South Australia, a site that hosts one of the largest copper, gold and uranium deposits in the world.
The renewable energy supply arrangements, which will commence in mid-2022, will reduce Olympic Dam’s emissions from electricity by 50% by 2025, and help BHP achieve its medium-term target of a 30% reduction in Scope 1 and Scope 2 emissions by 2030.
Under the arrangements a Olympic Dam will have a direct link to the generation from the 320MW Port Augusta Renewable Energy Park (PAREP), the largest hybrid wind-solar farm in Australia.
As a result, around half of the electricity supplied under the contract will be directly attributable to PAREP.
The contract also includes a mechanism for BHP to acquire 100% Large Scale Generation Certificates (LGCs) for the contracted load by 2025.
Iberdrola Australia CEO Ross Rolfe said: “We worked very closely with BHP to design these bespoke renewable energy supply arrangements.
“Olympic Dam is to be the primary customer for the Port Augusta Renewable Energy Park, a demonstration of their commitment to local procurement and sustainable economic development.”