As part of the plan, the company has signed a five-year PPA with Queensland’s clean energy retailer CleanCo


CleanCo will supply power from its low emissions portfolio. (Credit: Ralf Vetterle from Pixabay.)

Australian mining major BHP is planning to reduce its emissions from electricity use at its coal mines in Queensland by 50% by the year 2025.

The move to cut emissions is a part of the company’s effort to transition to renewable energy sources and gas.

As part of the plan, the company has signed a five-year renewable power purchasing agreement with Queensland’s clean energy generator and retailer CleanCo. It is effective from 1 January 2021.

BHP expects the agreement to help in reducing its emissions by 50% from electricity use in its Queensland operations, based on FY2020 levels.

BHP Minerals Australia president Edgar Basto said: “This is an important step forward in BHP’s transition to more sustainable energy use across our portfolio, and a first for our Australian operations. It will diversify our energy supply, help to reduce our energy costs, and reduce BHP’s Australian Scope 2 emissions by 20 per cent from FY2020 levels.

“This is a prime example of prudent business decisions going hand-in-hand with social value, strengthening our business and benefiting the community.”

CleanCo to initially supply power from its low emissions portfolio

The agreement will support the development of new solar and wind farms in Queensland. The projects include the Western Downs Green Power Hub, which is expected to come online in late 2022, and the Karara wind farm due for completion in early 2023.

During the first two years of the deal, CleanCo will supply power from its low emissions portfolio, which includes hydro and gas generation assets. From late 2022, the firm will supply power from solar and wind projects.

BHP Mitsubishi Alliance (BMA) asset president James Palmer said: “This contract will help our operations across Queensland to further increase their sustainability through reducing the greenhouse gas emissions we generate from electricity use by half.

“It will also support two greenfield renewable projects that in turn are expected to generate regional jobs in Queensland.”

Recently, Midland Base Metals has formed a strategic alliance with BHP subsidiary Rio Algom to fund the nickel exploration activities in northern Quebec, Canada.