BHP聽(ASX, LON, NYSE: BHP) plans聽聽in partnership with Canada鈥檚 TransAlta Renewables聽to power the Mt. Keith and Leinster nickel mines, part of its聽Nickel聽West complex聽in Western Australia.听
The聽world鈥檚 no. 1 miner聽said the project will help聽cut its聽carbon emissions by 12% compared with 2020 levels at聽the聽two聽operations, which currently obtain their power from聽diesel and gas turbines.听
The solar farms will also help produce sustainable low-carbon nickel used in electric-vehicle聽(EV)聽batteries, BHP said, for which the company signed a聽supply agreement with聽EV giant聽Tesla.听
The solar farms will contribute to BHP鈥檚 medium-term target to reduce Scope 1 and 2 emissions by at least 30% from 2020 levels by 2030
BHP commissioned the solar farms and battery to be built, owned, and operated by TransAlta as part of the power purchase agreement (PPA) extension signed in October 2020.听聽
The proposed installations will contribute to the miner鈥檚 medium-term target to reduce Scope 1 and 2 emissions from its assets by at least 30% from 2020 levels by 2030, it said.听
Construction is set to begin in the second quarter of 2022 and would take 12 to 14 months to complete.听
鈥淭his is the first large-scale onsite solar farm and battery that BHP has commissioned at any of its global operations,鈥� BHP Nickel West president, Eddy聽Haegel, said in a media statement.听
Embracing renewables
BHP聽has been steadily shifting its power sources from fossil fuels to green energy.听It聽already has four power agreements in Chile aimed at running its operations the country, including the Spence plant, and Escondida, the world鈥檚 largest copper mine,聽entirely on renewable power.听
The聽Melbourne, Australia-based giant is also聽aiming to eliminate the use of water聽from aquifers in Chile by 2030.听
At home, BHP聽inked a deal last September聽to聽support the development of new solar and wind farms in Queensland.听
The miner, which runs nine metallurgical coal operations in the Bowen Basin through its BHP Mitsubishi Alliance (BMA) and BHP Mitsui Coal (BMC), said that move would help it cut its indirect emissions in Australia by 20% over five years.听