The assets of BHP Mitsubishi Alliance (BMA) will be the first Australian operations across the miners portfolio to run under renewable power arrangements for 100% of their electricity needs, BHP has confirmed.
The move comes with the signing of a new power purchase agreement (PPA) for BMA’s Queensland operations. Specifically, the company arm has entered a new seven-year PPA commencing from FY2027, a third power agreement with Queensland publicly-owned energy generator and retailer CleanCo. The deal will allow BMA to meet all forecasted electricity needs from sources such as solar, wind and pumped hydro.
The new agreement, which is to be combined with its prior renewable PPA with CleanCo from 2023, is projected to make BMA’s Queensland assets the first of BHP’s Australian operations to have all of its operational demand supplied by renewable PPAs from 2027.
“The new PPA supports four renewable electricity projects across regional Queensland which have generated more than 1,500 local jobs during construction and are expected to create 37 jobs once operating,” BMA officials said.
BHP President Australia Geraldine Slattery added that the miner has committed to a target of reducing its operational emissions by at least 30% by FY2030.
“We’re really energized by this agreement. By moving BMA to 100% renewables, we’re taking a big step towards delivering on our goals,” he added.
BHP Chief Commercial Officer Rag Udd noted that the miner is dedicated to using more renewable energy at its Oz sites and around the world, calling agreements like this new one as core to its strategy.
“Across all the sites we operate, we are aiming to have 100% renewable electricity arrangements by FY2030, where it is technically and commercially viable to do so,” he said.
BMA confirmed its 100% electricity consumption under renewable power arrangements will be evidenced through the retirement of large-scale generation certificates (LGCs) and/or through other robust, internationally-aligned mechanisms or methodologies that verify and avoid double-counting in energy origin claims. Additionally, it is on track to achieve its medium-term target to reduce operational greenhouse gas emissions by at least 30% by FY2030 from its FY2020 levels.
BHP has a long-term goal to achieve net-zero operational greenhouse gas emissions by 2050.
Source: BHP