BHP Inks Renewable Electricity Supply Deal for Copper SA Operations

BHP Group Limited BHP has signed its third and largest renewable electricity supply arrangement for its Copper SA (Copper South Australia) operations. This marks a step in its operational decarbonization journey while generating investment in renewable energy generation in the state.

BHP Group’s South Australian operations consist of three primary mine assets (Carrapateena, Olympic Dam and Prominent Hill). It contains some of the world's most significant deposits of copper, gold and uranium. 

Per the baseload electricity arrangement, 100 megawatts (MW) of renewable electricity will be supplied to power the Olympic Dam mine, smelter and refinery as well as the Carrapateena and Prominent Hill operations. 

This supply will be sourced from the first 300 MW of Neoen’s Goyder North Wind Farm, supported by their new Goyder Battery with a minimum capacity of 200 MW / 800 MWh and Neoen’s energy management expertise. These two assets are currently under development with BHP being the primary customer.

This deal represents BHP Group’s third renewable electricity supply arrangement in South Australia in the past four years. It is the second renewable electricity supply arrangement with Neoen.

Combined with the previous arrangement with Neoen, this new deal will ensure that 70% of Copper SA’s electricity needs will be powered by renewable electricity in fiscal 2030. This is also in sync with BHP’s efforts to invest in renewable electricity supply and has already backed five major projects in South Australia.

This arrangement supports BHP Group’s target to lower operational greenhouse gas emissions (Scopes 1 and 2 emissions from its operated assets) by at least 30% by fiscal 2030 from the adjusted fiscal 2020 baseline. The company has a target to achieve net zero operational greenhouse gas emissions by 2050.

BHP Group’s Peers’ Decarbonization Goals

Rio Tinto RIO has set a target to reduce net emissions by 15% in 2025 compared with 2018 levels. It aims to reduce net Scope 1 and 2 emissions by 50% by 2030 and reach net zero by 2050. 

Rio Tinto plans to attain this by increasing renewable power to more than 90% and to address heat emissions from its alumina refineries. The company has budgeted $5-$6 billion total capital spending for decarbonization by 2030. 

Fortescue Ltd FSUGY remains committed to eliminating fossil fuels with a target to achieve Real Zero terrestrial emissions (Scope 1 and 2) by 2030 and Net Zero Scope 3 emissions by 2040. 

At present, Scope 1 and 2 emissions mainly stem from Fortescue’s iron ore operations, located within the Pilbara region of Western Australia. Fortescue is prioritizing the electrification of its heavy mining equipment to achieve significant early decarbonization. It also aims to develop several renewable energy projects to power the Pilbara mining operations. Fortescue is investing $6.2 billion in decarbonization initiatives.

VALE S.A. VALE plans to lower Scope 1 and 2 emissions by 33% by 2030 compared with its emissions in 2017. The company has set a target to achieve net zero emissions in Scope 1 and 2, by 2050. Vale aims to reduce Scope 3 emissions by 15% by 2035, compared to a 2018 baseline. Vale is aiming for 100% renewable electricity consumption in Brazil by 2025 and globally by 2030. 

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