BHP says it has signed a renewable Power Purchase Agreement (PPA) with Neoen, which is expected to meet half of Olympic Dam’s electricity needs from its 2026 financial year.

The agreement, which is based on current forecast demand, will allow Olympic Dam to record a net zero emission position for the contracted volume of supply, according to BHP.

The PPA is expected to supply 70 MW of electricity to Olympic Dam and will support Neoen to construct the 203 MW Goyder South Stage 1b Wind Farm, assuming all relevant consents are obtained, BHP said. This wind farm is to form part of the larger Goyder Renewables Zone in South Australia, and will introduce new renewable generation into the South Australian electricity grid.

In addition, Neoen will construct a large-scale battery energy storage system in Blyth, South Australia, to support the PPA, which will also assist in improving the stability of the South Australian electricity grid.

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 1,200 MW of wind generation, 600 MW of solar generation and 900 MW of battery storage capacity – making it South Australia’s largest renewable project.

BHP Olympic Dam Asset President, Jennifer Purdie, said: “The world needs South Australia’s high-quality copper to build renewable technologies and infrastructure, and BHP is 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.”

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% from adjusted 2020 financial year levels by its 2030 financial year.

BHP’s Chief Commercial Officer, Vandita Pant, said: “BHP is consciously working towards our target of at least a 30% reduction in our 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.”

Louis de Sambucy, Neoen Australia’s Managing Director, said: “We are delighted to provide BHP with this highly innovative solution. We are convinced that our ability to combine our assets and our energy management capabilities to create bespoke commercial offers will be a key element of success for our future developments.”

Xavier Barbaro, Neoen’s Chairman and Chief Executive Officer, added: “We thank BHP for their vote of confidence. Thanks to its storage assets and deep expertise, Neoen is now able to offer 24/7 energy to its customers. This first baseload PPA is a significant step forward for Neoen and will serve as a template for future contracts, opening up new market opportunities in Australia and in the rest of the world.”

Neoen, BHP says, is one of the world’s leading independent producers of exclusively renewable energy, having close to 5.6 GW of solar, wind and storage capacity in operation or under construction across numerous countries.