BHP expects to shortly enter into renewable energy supply arrangements to enable Olympic Dam to reduce its emission position to zero for 50 per cent of its electricity consumption by 2025, based on current forecast demand.
The arrangements will be supplied by Iberdrola, including from the Port Augusta Renewable Energy Park in South Australia, which will be Australia’s largest solar-wind hybrid plant once in operation in July 2022. BHP is to become the primary customer of this new renewable facility. The renewable energy supply arrangements referred to will include a retail agreement with Origin Energy, who will facilitate the arrangements.
This announcement follows BHP’s entry into renewable energy agreements for BHP’s operations in Western Australia in 2021, Queensland in 2020 and in Chile in 2019.
BHP Olympic Dam Asset President, Jennifer Purdie said: “These arrangements will support an exciting new renewable energy project which will contribute to South Australia’s renewable energy ambitions.
“Olympic Dam’s copper has an important role to play to support global decarbonisation and the energy transition as an essential product in electric vehicles and renewable infrastructure. Reducing emissions from our operations will further enhance our position as a sustainable copper producer.”
Iberdrola Australia Chief Executive Officer and Managing Director, Ross Rolfe, AO, said: “We are delighted to be partnering with BHP, helping them meet their decarbonisation and sustainability objectives. We worked very closely with BHP to design these bespoke renewable energy supply arrangements. Olympic Dam is to be the primary customer for the Port Augusta Renewable Energy Park, a demonstration of their commitment to local procurement and sustainable economic development."
The arrangements, intended to commence on 1 July 2022, are one of the actions BHP is taking to contribute to its medium-term target to reduce operational greenhouse gas emissions (Scopes 1 and 2) from its operated assets by at least 30 per cent from FY2020 levels by FY2030.
About Iberdrola Australia
Iberdrola Australia is leading Australia’s transition to a clean future, today. Our strategy is to put customers at the centre of the renewable energy transition by providing them with firm supplies of clean energy. We partner with our customers to help them deliver their sustainability and renewable energy goals. Iberdrola Australia operates one of the largest portfolios of renewable energy assets in the country and we have invested in a fleet of flexible, fast-start firming assets that manage intermittency risks. Iberdrola Australia’s customers include manufacturers, universities, councils, food and beverage producers, electric vehicle manufacturers, commercial property operators, industrial utilities, timber processors and large-scale infrastructure asset owners. More information on our customer offerings is available at: www.iberdrola.com.au
South Australian Minister for Energy and Mining, Dan Van Holst Pellekaan said: “The Marshall Government welcomed the arrangements as yet another step on South Australia’s pathway to cleaner, cheaper electricity for industry, businesses and households.
“The arrangements highlights the good sense of BHP, Iberdrola and other companies getting the generation mix right, including wind and solar farms, grid scale storage and fast start gas, to provide cleaner and more reliable electricity.”