BHP may boost climate change investments

BHP Billiton is stepping up its investigation of climate change technologies and is considering boosting spending.

BHP’s head of environment and climate change Fiona Wild. Picture: David Geraghty

BHP Billiton is stepping up its investigation of climate change technologies and is considering boosting spending with direct investments in emissions reduction technology.

The big miner’s head of environment and climate change, Fiona Wild, said the company was reviewing how it invested in low-emissions technology.

“The challenge of climate change means there needs to be an acceleration of low-emissions technologies, and the question is what role do we play in accelerating that,” Dr Wild said in Melbourne yesterday.

“We’ve invested about $US500 million in low-emissions technologies since 2006-07. We’re now saying let’s just refresh what we’re focused on and asking [is] whether there is more opportunity for us there.”

She said there was potential to step up investment if the right technologies were found.

“The focus for us is to develop a road map for our investments that enables us to accelerate the development of carbon capture and storage and other large-scale technologies that could reduce global emissions,” Dr Wild said.

BHP’s previous investment in climate change-limiting technology included helping fund the $60 million CO2CRC carbon capture and storage project in Victoria with 15 other industry partners.

Investments could become more direct than this. “We’re looking at what technologies can drive a material reduction in global greenhouse gas emissions and where does it make sense for BHP Billiton to play,” Dr Wild said. “The focus for us is really looking at ... what role we can play with the skill set that we bring in markets, geology and technology to work with others to accelerate the deployment of technology to address material sources of emissions.”

As well as carbon capture and storage, BHP is looking at technology that restricts fugitive methane (natural gas) emissions from coal, oil and gas and that improves transportation fuel and vehicle efficiency.

“Methane is expected to play a more significant role in terms of greenhouse gas emissions going forward because of its global warming potential,” she said, referring to recent findings by the Intergovernmental Panel on Climate Change.

Dr Wild said clarity was needed from governments on emissions policies. “Knowing where we are going, what we need to achieve, and having a strong policy framework to get us there would be very, very helpful for BHP,” she said. “From a business perspective we want to know what the rules of the game are and get on and play.” She said the jury was still out on whether carbon capture and storage could be viable on a large scale.