BHP Mitsubishi Alliance is making significant strides in sustainability by entering into a new power purchase agreement that will enable its Queensland operations to run on 100% renewable energy. This groundbreaking agreement, which spans seven years starting from FY2027, marks a pivotal moment for BMA as it becomes the first of BHP’s Australian operations to achieve this milestone. The new PPA is the third agreement signed with CleanCo, Queensland’s publicly-owned energy generator and retailer, and it is expected to fulfill all forecasted electricity needs through renewable sources such as solar, wind, and pumped hydro.
The new renewable energy agreement complements a previous PPA signed in 2023, reinforcing BMA's commitment to sustainability. Together, these agreements will ensure that BMA's Queensland assets are powered entirely by renewable energy beginning in 2027. This initiative not only aligns with BHP’s broader sustainability goals but also supports the growth of renewable energy infrastructure in Queensland, which has already created over 1,500 jobs during construction and is projected to generate an additional 37 jobs once operational.
Geraldine Slattery, BHP President Australia, expressed enthusiasm about the agreement, stating that it represents a significant step toward achieving the company’s target of reducing operational emissions by at least 30% by FY2030. BHP's commitment to renewable energy is a core component of its strategy, with plans to implement 100% renewable electricity arrangements across all its sites by FY2030, where feasible. This ambitious goal reflects a growing recognition of the importance of sustainable practices in the mining and resources sector.
Rag Udd, BHP's Chief Commercial Officer, emphasized the importance of such agreements in the company's overall strategy to increase the use of renewable energy. The transition to renewable electricity is not only beneficial for the environment but also enhances the competitiveness of BHP's operations. The collaborative approach taken with CleanCo highlights the role of partnerships in driving economic growth while addressing climate change.
Adam Lancey, BMA Asset President, noted that this agreement is the result of years of dedicated work and planning. He expressed pride in BMA's position as a leader in renewable energy within BHP’s Australian operations. The transition to 100% renewable energy is seen as a positive development for both BMA and the Queensland community, reinforcing the company's commitment to supporting local economies and sustainable practices.
Tom Metcalfe, CEO of CleanCo, highlighted the significance of this partnership in helping Queensland businesses decarbonize and thrive in a net-zero future. He pointed out that projects like the Dulacca Wind Farm and Kaban Wind Farm play a crucial role in local job creation and community support. This collaboration not only addresses the challenges of decarbonization but also transforms them into opportunities for economic growth.
It is important to note that the current forecasted electricity demand for BMA’s Queensland operations may fluctuate. The commitment to 100% renewable electricity will be verified through the retirement of large-scale generation certificates and other reliable methodologies to ensure accurate energy origin claims. BHP remains on track to meet its medium-term target of reducing operational greenhouse gas emissions by at least 30% by FY2030, with a long-term goal of achieving net-zero operational greenhouse gas emissions by 2050.
With this significant move towards renewable energy, BHP Mitsubishi Alliance sets a precedent for the mining industry in Australia, showcasing how large corporations can lead the way in sustainability while positively impacting local communities and economies.
