BHP has struck a deal to source half of Olympic Dam’s power from renewable sources
BHP says it is about to strike a deal which will get the massive Olympic Dam mine in South Australia half way to net zero.
BHP is about to strike a deal with Spanish firm Iberdrola to source half of the Olympic Dam mine’s energy needs from renewable sources by 2025.
The mining giant said on Thursday it would shortly enter into renewable energy supply arrangements which would “reduce its emission position to zero for 50 per cent of its electricity consumption by 2025, based on current forecast demand’’.
The energy will be sourced from Iberdrola, and will come in part from the Port Augusta Renewable Energy Park - a $500m wind and solar project which is currently under construction. The facility is expected to come online mid-next year.
BHP said it would be the primary customer of the new renewables project, which once completed, would include almost 250,000 solar panels and 50 wind turbines.
The Olympic Dam operation, where BHP mines copper, uranium, gold and silver, is the state’s largest single power user, reportedly using about 8 per cent of the SA’s usual power use.
BHP Olympic Dam asset president Jennifer Purdie said the deal would support an exciting new renewable energy project for South Australia.
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“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,’’ Ms Purdie said.
“Reducing emissions from our operations will further enhance our position as a sustainable copper producer.”
BHP has a medium-term target to reduce its operational greenhouse gas emissions (Scopes 1 and 2) by 30 per cent from FY20 levels by FY30.
Iberdrola Australia managing director Ross Rolfe said the company was delighted to be working with BHP.
“We worked very closely with BHP to design these bespoke renewable energy supply arrangements,’’ Mr Rolfe said.
“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.”
Energy supply under the arrangement is expected to start from July next year.
The Port Augusta project will combine 210MW of wind power capacity with 107MW of solar.
Iberdrola has said the project would employ 200 people during the construction phase and create about 20 ongoing jobs.
Iberdrola bought Infigen Energy in 2020, in the process acquiring a significant pipeline of Australian renewable energy projects.
BHP has also entered into renewable energy agreements for its operations in Western Australia in 2021, Queensland in 2020 and in Chile in 2019.