BMA to run on 100% renewable electricity

BHP Mitsubishi Alliance (BMA) is set to become the first Australian operations at BHP (ASX: BHP) to run under renewable power arrangements for 100% of its electricity needs following the signing of a new power purchase agreement (PPA) for its Queensland operations.

The seven-year PPA commencing from FY27 is expected to allow BMA to meet all its forecasted electricity needs from sources such as solar, wind and pumped hydro.

The new agreement, when combined with another renewable PPA signed with CleanCo in 2023, is expected to allow BMA’s Queensland assets to have 100% of its forecasted operational electricity demand supplied by renewable PPAs from 2027.

BHP Australia president Geraldine Slattery says BHP has committed to a target of reducing its operational emissions by at least 30% by FY30.

“By moving BMA to 100% renewables we’re taking a big step towards delivering on our goals,” she said.
BHP chief commercial officer Rag Udd says the company is committed to using more renewable energy at its sites across Australia and around the world, making agreements like these vital to its strategy.

“Across all the sites we operate, we are aiming to have 100% renewable electricity arrangements by FY30, where it is technically and commercially viable to do so,” he said.

BMA asset president Adam Lancey says the agreement is the culmination of years of work.

“This is good for BMA and good for Queensland,” he said.

“This agreement is underpinned by four projects which have supported more than 1500 construction jobs and are expected to create 37 jobs once operating, reinforcing our strong support for Queensland’s renewable electricity infrastructure build which is boosting regional and local communities.”

CleanCo chief executive Tom Metcalfe says CleanCo is focused on delivering clean energy solutions that help Queensland businesses and communities decarbonise and thrive in a net zero future.

“We are privileged to partner with BMA to transform the challenge of decarbonisation into an opportunity for enhanced competitiveness,” he said.

“BMA’s commitment to 100% renewable electricity highlights the vital role renewable projects like Dulacca Wind Farm on the Western Downs and Kaban Wind Farm in Far North Queensland play in local job creation and supporting regional communities.

“This partnership is a testament to how collaborative efforts can drive economic growth and environmental sustainability.”