BHP Mitsubishi Alliance enters renewable power agreement with CleanCo

BHP Mitsubishi Alliance (BMA) has entered a renewable power purchase agreement (PPA) with Queensland’s publicly owned energy generator and retailer, CleanCo.

The new agreement will run until 2030 and extends an existing low carbon emission power agreement between BMA and CleanCo that is currently running to the end of 2025.

This second PPA will enable BMA to continue to source half of its expected electricity needs from low greenhouse gas emission sources such as solar, wind and pumped hydro.

BHP President Australia Geraldine Slattery commented on the new agreement.

“We are increasing renewable electricity at BMA in line with our decarbonisation commitments to 2030 and beyond, improving the long-term sustainability of our business while at the same time supporting Queensland’s renewable electricity infrastructure build, regional communities and local jobs,” she said.

“We expect demand for Queensland’s higher-quality metallurgical coal to remain strong for many years to come, as major steelmakers look to reduce their emissions intensity while delivering the steel needed to support global population growth and decarbonisation infrastructure.”

The new PPA will help support four renewable electricity projects across regional Queensland which, when combined, are expected to generate more than 1500 local jobs during construction. These projects include the Dulacca Wind Farm, the MacIntyre Wind Farm, the Western Downs Green Power Hub and the Kaban Wind Farm.

The PPA is also linked to CleanCo’s new renewable energy storage initiative which directs excess renewables to the Wivenhoe Pumped Storage Hydroelectric Power Station.

CleanCo chief executive Tom Metcalfe said the company is pleased to partner with BMA.

“It is our role to develop solutions that meet the unique energy needs of these companies to that they can thrive in a net zero future and I am thrilled BMA has entrusted CleanCo to continue to supply reliable, renewable energy for its transitions,” he said.

BHP remains on track to achieve its medium-term target to reduce operational greenhouse gas emissions by at least 30% by FY30. The company also has a long-term goal to achieve net zero operational greenhouse gas emissions by 2050.