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BHP Mitsubishi Alliance (BMA) has entered into a renewable power purchase agreement (PPA) with Queensland’s publicly owned energy generator and retailer CleanCo.

The partnership is expected to provide half the forecasted electricity demand of BMA’s central Queensland operations over five years from January 2026.

“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 at the same time supporting Queensland’s renewable electricity infrastructure build, regional communities and local jobs,” BHP president Australia Geraldine Slattery said.

“We expect demand for Queensland’s higher-quality metallurgical coal to remain strong for many years to come, as major steelmakers look to reduce their emissions intensity while delivering the steel needed to support global population growth and decarbonisation infrastructure.”

The new PPA will run to the end of 2030 and effectively extend an existing low-carbon emission power agreement between BMA and CleanCo currently running to the end of 2025.

The new PPA will help support four renewable electricity projects across regional Queensland, which combined are expected to generate more than 1500 local jobs during construction.

These projects include the Dulacca wind farm due for completion in late 2023, the MacIntyre wind farm due for completion in 2025 and the Western Downs Green Power Hub and Kaban wind farm, expected to reach full commercial operation later this year.

“It is our role to develop solutions that meet the unique energy needs of these companies so that they can thrive in a net zero future and I am thrilled BMA has entrusted CleanCo to continue to supply reliable, renewable energy for its operations,” CleanCo chief executive officer Tom Metcalfe said.

BHP is on track to achieve its medium-term target to reduce operational greenhouse gas emissions by at least 30 per cent by 2030.