Mining conglomerate BHP has signed a power purchasing agreement (PPA) to meet half of its electricity needs across its Queensland, Australia, coal mines from sources that include solar and wind.
The PPA will help BHP reduce emissions from electricity use in its Queensland operations by 50% by 2025, based on 2020 levels.
The agreement, with Queensland’s state-owned clean energy generator and retailer CleanCo, will run for five years from 1 January 2021 and will displace an estimated 1.7 million tonnes of carbon dioxide emissions between 2021 and 2025.
Over the five-year agreement, power will be provided via the grid, and predominantly contracted from a combination of solar, wind, hydro and gas generation.
For the first two years, power will be contracted from CleanCo’s low emissions portfolio which includes hydro and gas generation assets.
From late 2022, the newly operational Western Downs Green Power Hub solar farm and the Karara wind farm, both in Queensland, will diversify CleanCo’s portfolio with renewable power sources, helping BHP meet its target.
The agreement is the first of its kind signed by BHP in Australia and follows the company’s shift to 100% renewables in its Chilean operations at Escondida and Spence from the mid-2020s.
BHP minerals Australia president Edgar Basto said: “This is an important step forward in BHP’s transition to more sustainable energy use across our portfolio, and a first for our Australian operations.
“It will diversify our energy supply, help to reduce our energy costs, and reduce BHP’s Australian Scope 2 emissions by 20% from FY2020 levels.
“This is a prime example of prudent business decisions going hand-in-hand with social value, strengthening our business and benefitting the community.”