Queensland coal miner secures renewable power until 2030

BHP Mitsubishi Alliance (BMA) has signed a new renewable power purchase agreement (PPA) with Queensland’s publicly owned energy company CleanCo to meet half the expected electricity demand of its Central Queensland operations from 2026 to 2030.

The new five-year agreement, announced on Monday, extends an existing deal between the companies to provide 50% of BMA’s current Queensland electricity needs with renewables, which expires at the end of 2025.

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The new PPA will be supported by four wind and solar projects -- the Dulacca Wind Farm slated to be completed in late 2023, the MacIntyre Wind Farm to be completed in 2025, and the Western Downs Green Power Hub and Kaban Wind Farm which are moving towards full commercial operation later in 2023. The agreement also incorporates storage from the Wivenhoe Pumped Hydro Power Station.

“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,” commented BHP President Australia Geraldine Slattery.

BHP aims to lower operational greenhouse gas emissions by at least 30% by fiscal year 2030 compared to fiscal year 2020 and to have net zero operational greenhouse gas emissions by 2050.