BHP has signed a renewable Power Purchase Agreement (PPA) with Neoen for about half of Olympic Dam’s electricity needs from FY2026.
The figure is based on current forecast demand, and allows the mine to record a net zero emission position for the contracted volume of supply.
The PPA is expected to supply 70 megawatts (MW) of electricity to Olympic Dam and will support Neoen to construct the 203MW Goyder South Stage 1b wind farm, assuming all relevant consents are obtained. This wind farm is to form part of the larger Goyder Renewables Zone in South Australia, and will introduce new renewable generation into the state’s Australian electricity grid.
In addition, Neoen will construct a large-scale battery energy storage system in Blyth to support the PPA, which will also assist in improving the stability of the grid.
Neoen expects the operation of this wind and battery project to create approximately 250 construction jobs and 15 permanent jobs in South Australia.
BHP Olympic Dam asset president Jennifer Purdie said the world needed South Australia’s high-quality copper to build renewable technologies and infrastructure, and BHP was focused on producing that copper more sustainably.
“This agreement will support BHP on its decarbonisation journey, and provide new firmed renewable energy and increased stability to the South Australian grid,” she said.
This latest agreement follows commitments BHP has made in recent years, which have seen renewable electricity contribute to powering BHP facilities in Western Australia, South Australia, Queensland and Chile.
This PPA continues the actions BHP is taking to contribute to its medium-term target to reduce operational greenhouse gas emissions (Scopes 1 and 2 from its operated assets) by at least 30 per cent from adjusted FY2020 levels by FY2030.
BHP chief commercial officer, Vandita Pant, said BHP was consciously working towards its target of at least a 30 per cent reduction in operational emissions by FY2030.
“Renewable energy partnerships, such as this agreement with Neoen, are important steps towards that outcome, and our longer-term 2050 net zero goal,” she said.
Neoen is one of the world’s leading independent producers of exclusively renewable energy, with close to 5.6GW of solar, wind and storage capacity in operation or under construction across numerous countries, including Australia, Finland and France.
It is Australia’s leading renewable energy generator with over 2.6GW of solar, wind and storage in operation or under construction. Neoen has two of the world’s largest lithium-ion batteries: Hornsdale Power Reserve (150MW/193.5MWh) near Jamestown, South Australia and the Victorian Big Battery (300MW/450MWh) near Geelong, Victoria.
Goyder South Stage 1, consisting of Goyder South 1a and 1b, is the first stage of Neoen’s flagship project known as Goyder Renewables Zone – a hybrid wind, solar and storage project located in mid-north South Australia. Goyder South has development approval for a total of 1200MW of wind generation, 600MW of solar generation and 900MW of battery storage capacity – making it South Australia’s largest renewable project.