Hudbay Minerals Inc says it has signed a new 10-year power purchase agreement with ENGIE Energía Perú for access to a 100% renewable energy supply to Hudbay’s Constancia operations in Peru.
Following the end of the current power supply agreement in Peru, energy will be supplied by ENGIE Energía Perú starting on January 1, 2026, with a 10-year term. The new agreement ensures a consistent and guaranteed supply of renewable energy sufficient for Hudbay’s Constancia operation, the company says.
Hudbay said: “The new contract provides improved flexibility in power supply levels and lower contracted costs as compared to the existing power supply contract. The contract functions on a consumption basis, ensuring the company’s costs are variable based on actual usage, with no minimum spend or penalty for usage below the contracted rate.”
In alignment with Hudbay’s greenhouse gas (GHG) emissions reduction initiatives, the new contract includes the granting of Renewable Energy Certificates (RECs) to Hudbay as an assurance of the supply of renewable energy dedicated to Constancia’s electricity consumption. These RECs will be applied to Hudbay’s energy consumption to enable the company to have a 100% carbon-neutral energy supply at its Constancia operations, it said. As a result of the application of these RECs, total Scope 1 and Scope 2 GHG emissions company-wide at Hudbay’s current operations are expected to decline by 40% during the life of the contract, positioning the company well to achieve its 2030 climate change target of a 50% reduction in Scope 1 and Scope 2 GHG emissions.
Peter Kukielski, Hudbay’s President and Chief Executive Officer, said: “Last December, Hudbay committed to reducing its 2030 GHG emissions by 50% and achieving net zero by 2050. The signing of this 10-year power purchase agreement marks a major milestone for achieving Hudbay’s greenhouse gas reduction goals. We are proud of this achievement as it places Hudbay firmly in reach of achieving a 50% emissions reduction by 2030 and on track for net zero by 2050. Additionally, Hudbay’s low carbon footprint production will continue to produce the metals needed for the global transition to a low-carbon future.”