BHP and Neoen have signed a renewable Power Purchase Agreement (PPA) that is anticipated to cover half of Olympic Dam‘s power needs starting in FY2026 and enable Olympic Dam to record a net zero emission status for the contractual volume of supply.
In a statement, BHP said assuming all necessary approvals are granted, the PPA will, among other things, help Neoen build the 203MW Goyder South Stage 1b Wind Farm and supply 70 megawatts (MW) of electricity to Olympic Dam. This wind farm will add new renewable power to the South Australian electrical system and be a part of the broader Goyder Renewables Zone.
To further support the PPA, Neoen will build a sizable battery energy storage system in Blyth, South Australia. This project will also help to increase the stability of the South Australian electrical grid.
About 250 construction jobs and 15 permanent jobs are anticipated to be created in South Australia due to the development and operation of this wind and battery project, according to Neoen.
BHP Olympic Dam Asset President Jennifer Purdie said BHP is concentrating on manufacturing high-quality copper from South Australia more responsibly because the world needs it to create infrastructure and renewable technology.
“This agreement will support BHP on its decarbonisation journey, and provide new firmed renewable energy and increased stability to the South Australian grid,” Purdie stated.
The most recent arrangement is in line with BHP’s recent promises, which included using renewable electricity to power BHP operations in Chile, South Australia, Queensland, and Western Australia.
As part of its medium-term goal to reduce operational greenhouse gas emissions (Scopes 1 and 2 from its operated assets) by at least 30 per cent from adjusted FY2020 levels by FY2030, BHP is continuing its current measures with this PPA.
BHP’s Chief Commercial Officer Vandita Pant said to meet our goal of at least a 30 per cent decrease in operational emissions by FY2030, BHP is actively working towards it. Partnerships with renewable energy providers, like this one with Neoen, are crucial steps in achieving both that result and BHP’s longer-term 2050 net zero targets.
“We are delighted to provide BHP with this highly innovative solution. We are convinced that our ability to combine our assets and our energy management capabilities to create bespoke commercial offers will be a key element of success for our future developments,” Neoen Australia’s Managing Director Louis de Sambucy stated.
Xavier Barbaro, Neoen’s Chairman and Chief Executive Of?cer, said: “We thank BHP for their vote of confidence. Thanks to its storage assets and deep expertise, Neoen is now able to offer 24/7 energy to its customers. This first baseload PPA is a significant step forward for Neoen and will serve as a template for future contracts, opening up new market opportunities in Australia and in the rest of the world.”
 that is anticipated to cover half of Olympic Dam's power needs starting in FY2026 and enable Olympic Dam to record a net zero emission status for the contractual volume of supply.){kind=link}