In a move towards net zero ambition by 2050, mining and infrastructure provider Orica has announced it will source 100 per cent renewable energy electricity by 2040.
Building on its goal of reducing scope 1 and 2 greenhouse gas emissions by at least 40 per cent by 2030, Orica’s renewable electricity target will see companies powered by 100 per cent renewable energy by 2040, with an interim step of 60 per cent by 2030. According to Orica, this commitment demonstrates the company’s intention to further decarbonise its operations and boost its competitiveness in a lower-carbon economy.
In a statement, Orica Chief Financial and Sustainability Officer Christopher Davis said Orica is transitioning its operations toward more renewable forms of energy to sustainably mobilise Earth’s resources and the organisation’s net zero ambition.
“Over the coming years, Orica will proactively evolve its approach to energy procurement and secure renewable electricity partnership to support this transition, prioritising offsite renewable generation projects to spur growth and jobs in the industry,” Davis stated.
Davis said contracting renewable electricity through long-term Power Purchase Agreements (PPA) will enable Orica to reduce its exposure to volatile electricity markets while supporting local communities and significantly contributing to its sustainability targets.
Orica has entered into a PPA with Lightsource bp for renewable power generated by its Wellington North solar farm to expedite Orica’s journey to 100 per cent renewable electricity.
Lightsource bp will use Orica’s PPA to underpin its Wellington North solar farm, an extension of its pre-existing Wellington solar farm, making it Australia’s largest solar developer and owner. The Wellington North solar farm will generate 915GWh of renewable power each year, saving more than 730,000 metric tonnes of carbon emissions. The project will provide approximately 400 construction jobs and eight full-time equivalent roles once operational in 2025.
As part of the PPA, the Wellington North solar farm will supply around 50 per cent of Orica’s Australian electricity demand, decreasing Orica’s worldwide Scope 2 emissions by over 60,000 metric tonnes of carbon emission per year, equivalent to powering 19,000 New South Wales houses. Orica’s global contribution to renewable power will be about 30 per cent once Wellington North is fully operational.
“Australia needs more clean, low-cost energy in the power system to drive down costs for consumers, meet rising demand, combat climate change, and improve energy independence. Fortunately, the current outlook for solar in Australia and the region is incredibly strong, with increasing political support, greater investor certainty, and capital looking to participate in the sector,” Lightsource bp Australia and New Zealand Managing Director Adam Pegg said.
