The BHP Mitsubishi Alliance (BMA) joint venture, operating in Queensland’s Bowen Basin, has signed a renewable power purchase agreement (PPA) with CleanCo, a Queensland government-owned energy generator and retailer. The PPA will enable up to 50% of BMA’s central Queensland coal operations to be powered by renewable sources over five years, starting in January 2026.
Key Points
Renewable Power Agreement: BMA’s joint venture, targeting net zero operational greenhouse gas emissions by 2050, has extended its existing renewable power agreement with CleanCo, which is set to expire at the end of 2025. The new PPA allows BMA to source half of its electricity needs from renewables, including solar, wind, and pumped hydro.
Support for Renewable Projects: The PPA will support the development of various renewable energy projects, including Neoen’s 460 MW Western Downs solar farm, which is part of the Western Downs Green Power Hub. This hub also includes a 200 MW/400 MWh battery and is expected to reach full commercial operations soon.
Additional Projects: CleanCo’s PPA will also contribute to the 180 MW Dulacca Wind Farm, under construction and expected online in late 2023, Acciona Energia’s 2 GW MacIntyre Wind Farm, scheduled for completion in 2025, and the 157 MW Kaban Wind Farm, set to achieve full commercial operations by late 2023.
Energy Storage: CleanCo has incorporated storage capabilities from the 570 MW Wivenhoe pumped hydro energy storage facility into the PPA. This allows CleanCo to store renewable energy at Wivenhoe for BMA’s use when needed, ensuring a stable and reliable power supply.
Tailored Solutions: CleanCo aims to provide tailored clean energy solutions to meet the energy-intensive needs of industries like mining, supporting them in their transition towards a net-zero future.
BHP’s partnership with CleanCo and its commitment to renewable energy align with its medium-term goal to reduce operational greenhouse gas emissions by at least 30% by 2030 and its long-term ambition to achieve net-zero operational greenhouse gas emissions by 2050. This PPA represents a significant step in BHP’s sustainability efforts.
