BHP Mitsubishi Alliance (BMA) assets are set to become the first Australian operations at BHP to run under renewable power arrangements for 100 per cent of their electricity needs, following the signing of a new power purchase agreement (PPA) for BMA's Queensland operations.
BMA has entered into a new seven-year PPA commencing from FY2027 - the third power agreement signed with Queensland's publicly-owned energy generator and retailer CleanCo - which is expected to allow BMA to meet all of its forecasted electricity needs from sources such as solar, wind and pumped hydro.
The new agreement - when combined with another renewable PPA signed with CleanCo in 2023 - is expected to allow BMA's Queensland assets to become the first of the Australian operations at BHP to have 100 per cent of their forecasted operational electricity demand supplied by renewable PPAs from 2027.
The new PPA supports four renewable electricity projects across regional Queensland which have generated more than 1500 local jobs during construction and are expected to create 37 jobs once operating.
BHP President Australia, Geraldine Slattery, said: "BHP has committed to a target of reducing our operational emissions by at least 30 per cent by FY2030."
"So we're really energized by this agreement. By moving BMA to 100 per cent renewables we're taking a big step towards delivering on our goals."
BHP Chief Commercial Officer, Rag Udd, said: "We are committed to using more renewable energy at our sites across Australia and around the world, so agreements like these are core to our strategy.
"Across all the sites we operate, we are aiming to have 100 per cent renewable electricity arrangements by FY2030, where it is technically and commercially viable to do so."
BMA Asset President, Adam Lancey, said: "This agreement is the culmination of years of work. I'm really proud that BMA is going to be the first of BHP's Australian operations to be powered by 100 per cent renewable energy.
"This is good for BMA and good for Queensland. This agreement is underpinned by four projects which have supported more than 1500 construction jobs and are expected to create 37 jobs once operating, reinforcing our strong support for Queensland's renewable electricity infrastructure build which is boosting regional and local communities."
CleanCo CEO, Tom Metcalfe, said: "CleanCo is focused on delivering clean energy solutions that help Queensland businesses and communities decarbonise and thrive in a net zero future. We are privileged to partner with BMA to transform the challenge of decarbonisation into an opportunity for enhanced competitiveness."
"BMA's commitment to 100 per cent renewable electricity highlights the vital role renewable projects like Dulacca Wind Farm on the Western Downs and Kaban Wind Farm in Far North Queensland play in local job creation and supporting regional communities. This partnership is a testament to how collaborative efforts can drive economic growth and environmental sustainability."
Notes:
- The current forecasted electricity demand for BMA's Queensland operations is subject to change.
- BMA's 100 per cent 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.
- BHP is on track to achieve its medium-term target to reduce operational greenhouse gas emissions by at least 30 per cent by FY2030 from its FY2020 levels.
- BHP has a long-term goal to achieve net zero operational greenhouse gas emissions by 2050.
Image: Kaban Wind Farm
