BHP Secures Major Renewable Energy Deal for Copper Mines

BHP has finalized its largest renewable energy agreement to date, signing a 100-MW baseload supply deal with French developer Neoen. This agreement, announced on March 15, 2024, aims to power BHP’s copper operations in South Australia and advance the company’s decarbonisation targets.

The deal will support BHP’s Copper SA assets, including the Olympic Dam mine, smelter, and refinery, as well as the Carrapateena and Prominent Hill mines. Electricity will be sourced from Neoen’s $2 billion Goyder North wind and battery project, which is currently under construction near Burra in South Australia’s mid-north region.

Job Creation and Renewable Energy Goals

The Goyder North project is expected to generate up to 550 construction jobs and 20 permanent positions once operational. BHP will act as the project’s anchor customer. This agreement marks BHP’s third renewable electricity supply deal in South Australia within the last four years and its second partnership with Neoen. Together with an earlier agreement, this new contract will enable BHP to meet approximately 70% of Copper SA’s projected electricity requirements from renewable sources by 2030.

Anna Wiley, President of BHP Copper SA, stated that the agreement highlights the company’s capacity to leverage its size to expedite the clean energy transition. “BHP’s Copper SA operations are taking another step forward in our decarbonisation journey with its third renewable power arrangement,” she remarked. “We are using the size and scale of our copper operations to underpin significant new investment in renewable electricity in South Australia.”

This contract aligns with BHP’s broader goal to cut greenhouse gas emissions from its operations (Scopes 1 and 2) by at least 30% by 2030, based on a 2020 baseline, and to achieve net zero emissions by 2050.

Importance of Copper in Energy Transition

Michiel Hovers, BHP’s Group Sales and Marketing Officer, emphasized the critical role of copper in the global energy transition. “Copper is one of the most critical minerals in enabling the global energy transition,” he noted. “As global demand for copper continues to grow, BHP is making significant progress in lowering the greenhouse gas emissions intensity of our copper production in South Australia.”

Hovers also highlighted the partnership with Neoen as pivotal in facilitating further reductions in operational greenhouse gas emissions, enabling BHP to continue supplying responsibly produced copper to its global customer base.

For Neoen, this agreement signifies another milestone in its collaboration with one of South Australia’s largest industrial power users. Jean-Christophe Cheylus, CEO of Neoen Australia, stated, “This second agreement to supply power to BHP demonstrates Neoen’s end-to-end expertise in designing, delivering, and deploying customized energy solutions that can meet the growing demands of its customers and support the pace of Australia’s transition.”

Cheylus expressed gratitude towards BHP for their continued trust in Neoen, reinforcing the significance of this partnership in advancing renewable energy initiatives within the region.

BHP’s commitment to renewable energy sources reflects a broader trend in the mining sector, where companies are increasingly focused on sustainability and reducing their carbon footprints. This latest agreement exemplifies the potential for collaboration between traditional industries and renewable energy providers to create a more sustainable future.