03 November 2022
BHP has signed a renewable Power Purchase Agreement (PPA) with Neoen, which is expected to meet half of Olympic Dam’s electricity needs from FY2026, based on current forecast demand, and allow Olympic Dam 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 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.
Neoen expects the construction and 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 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 per cent from adjusted FY2020 levels by FY2030.
BHP’s Chief Commercial Officer, Vandita Pant, said: “BHP is consciously working towards our target of at least a 30 per cent 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, said: “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 is one of the world’s leading independent producers of exclusively renewable energy. Neoen has close to 5.6 GW of solar, wind and storage capacity in operation or under construction across numerous countries, including Australia, Finland and France.
Neoen is Australia’s leading renewable energy generator with over 2.6 GW of solar, wind and storage in operation or under construction. Neoen has two of the world’s largest lithium-ion batteries: Hornsdale Power Reserve (150 MW / 193.5 MWh) near Jamestown, South Australia and the Victorian Big Battery (300 MW / 450 MWh) near Geelong, Victoria.
About Goyder South Stage 1
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 1200 MW of wind generation, 600 MW of solar generation and 900 MW of battery storage capacity - making it South Australia’s largest renewable project.
Goyder Renewables Zone leverages the exceptional wind and solar renewable resources of the area and will deliver a significant economic boost to the region.