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BHP adds more renewables to its grid

Thursday, November 3rd, 2022

Diversified major BHP has signed a renewable power purchase agreement (PPA) with independent power producer Neoen, in South Australia.

The PPA is expected to meet half of Olympic Dam’s electricity needs from 2026, based on current forecast demand, and allow Olympic Dam to record a net zero emission position for the contracted volume of supply. 

The PPA is expected to supply 70 MW of electricity to Olympic Dam and will support Neoen to construct the 203 MW Goyder South Stage 1b wind farm, assuming all relevant consents are obtained. This wind farm is to form part of the larger Goyder Renewables Zone in South Australia, and will introduce new renewable generation into the South Australian electricity grid. 

In addition, Neoen will construct a large-scale battery energy storage system in Blyth, South Australia to support the PPA, which will also assist in improving the stability of the South Australian electricity grid.   

“The world needs South Australia’s high-quality copper to build renewable technologies and infrastructure, and BHP is focused on producing that copper more sustainably,” BHP Olympic Dam asset president Jennifer Purdie said.

“This agreement will support BHP on its decarbonisation journey, and provide new firmed renewable energy and increased stability to the South Australian grid.”  

This latest agreement follows commitments BHP has made in recent years, which have seen renewable electricity contribute to powering BHP facilities in Western Australia, South Australia, Queensland and Chile.   

This PPA continues the actions BHP is taking to contribute to its medium-term target to reduce operational greenhouse-gas emissions (Scopes 1 and 2 from its operated assets) by at least 30% from adjusted 2020 levels by 2030.  

BHP chief commercial officer Vandita Pant, said the company is consciously working towards its target of at least a 30% reduction in its operational emissions by 2030.

“Renewable energy partnerships, such as this agreement with Neoen, are important steps towards that outcome, and our longer-term 2050 net zero goal.” 

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