BHP, the world’s largest mining company, has signed a new power purchase agreement with CleanCo, Queensland’s publicly owned renewable energy generator. Under the agreement, CleanCo will supply a mix of locally sourced wind, solar, and pumped hydro power to BHP Mitsubishi Alliance (BMA), which operates metallurgical coal mining operations in Queensland, Australia.
The deal commits CleanCo to provide half of BMA’s electricity demand for their central Queensland operations for a period of five years starting in January 2026. This PPA effectively extends the existing low carbon emission power agreement between BMA and CleanCo, which is set to expire by the end of 2025, until 2030.
BMA is Australia’s largest producer and supplier of metallurgical coal, a high carbon variety of coal used in the steel-making process. This sector is considered “hard-to-abate” and is currently struggling to find commercially viable zero-carbon alternatives. In the meantime, companies like BHP are keen to reduce emissions throughout their supply chains.
The renewable energy used to power BMA’s operations will come from the Dulacca wind farm, projected to be completed in late 2023, and the MacIntyre project near Warwick, scheduled for completion in 2025. Additionally, power will be sourced from the Western Downs Green Power Hub and Kaban Wind Farm.
Furthermore, the PPA is linked to CleanCo’s renewable energy storage initiative, which will direct excess renewables to the Wivenhoe Pumped Storage Hydroelectric Power Station to support a continuous supply of renewable energy.
This agreement reflects BHP’s commitment to decarbonization and sustainability. BHP Australia president Geraldine Slattery stated, “We are increasing renewable electricity at BMA in line with our decarbonisation commitments to 2030 and beyond, improving the long-term sustainability of our business while supporting Queensland’s renewable electricity infrastructure build, regional communities, and local jobs.”
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