BHP Mitsubishi Alliance (BMA) and CleanCo have signed a new five-year renewable power purchase agreement (PPA), which is expected to provide half of the forecasted electricity demand at BMA’s Central Queensland operations from January 2026.
The new PPA will be in place until the end of 2030, essentially extending an existing low carbon emission power agreement between BMA and CleanCo that is already in operation until the end of 2025.
The second PPA will enable BMA to continue supplying half of its electricity needs from low greenhouse gas emission sources like solar, wind, and pumped hydro.
“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.
Slattery stated that Queensland’s metallurgical coal demand is expected to remain strong for years due to steelmakers’ efforts to reduce emissions, support global population growth, and decarbonise infrastructure.
According to BHP Chief Commercial Officer Vandita Pant, the company’s global operational decarbonisation involves increasing renewable energy usage at its assets.
“Through a growing number of agreements to supply our mines in Chile, Queensland, Western Australia and South Australia with renewable electricity, we are making good progress on decarbonisation while supporting the development of renewable infrastructure and stimulating regional economies,” Pant said.
The new PPA will support four renewable electricity projects in regional Queensland, generating over 1500 local jobs during construction, including the Dulacca Wind Farm, which is scheduled to be completed in late 2023, the MacIntyre Wind Farm, which is scheduled to be completed in 2025, and the Western Downs Green Power Hub and Kaban Wind Farm, which are currently supplying electricity to the grid and will be fully operational later this year.
The PPA is also linked to CleanCo’s new renewable energy storage strategy, which transfers excess renewables to the Wivenhoe Pumped Storage Hydroelectric Power Station to increase renewable supply and cost management.
“It is our 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 CEO Tom Metcalfe said.
BHP reported that it is on track to meet its medium-term goal of reducing operational greenhouse gas emissions by at least 30% by FY2030. Additionally, BHP has set a long-term objective of achieving net zero operational greenhouse gas emissions by 2050.
