Mining behemoth BHP will power all of the daytime energy needs of its Port Hedland iron ore export facilities with solar, in a deal with Alinta Energy that will cut the facilities’ energy emissions in half by the end of 2024.
A power purchase deal struck between BHP and Alinta, and announced on Tuesday, kick starts Alinta’s plans to build up to 90MW of solar and a 60MW/120MWh big battery in Port Hedland, to introduce cheaper renewables into a grid dominated by gas.
Alinta in April submitted development plans for the solar and big battery to be built close to its Port Hedland gas generator, adding to its first big battery at Mt Newman and a newly opened solar farm at Chichester.
The Port Hedland plans, which Alinta had proposed to execute in two stages, now appear to be starting with construction of a 45MW solar farm and 35MW/35MWh (one-hour) battery, with BHP as the foundation customer.
The first stage solar farm, which will be located around 14km from BHP’s port facilities, is expected to supply 100% of the average daytime energy requirements for BHP’s Port Hedland operations, with the rest met through the integrated battery system and existing gas generator.
BHP and Alinta have also signed a memorandum of understanding on development of the Shay Gap wind farm, a 45MW project with a potential first-generation date of 2027.
For BHP, the Port Hedland solar PPA is part of the mining giant’s commitment to reduce operational emissions in line with Paris climate targets, and green up the steel supply chain.
The renewable energy supply is expected to halve BHP’s reported electricity emissions at Port Hedland, based on current forecast demand and compared with FY2020 reported emissions.
This will contribute to BHP’s medium-term target to reduce operational emissions by at least 30 per cent from FY2020 levels by 2030 and its long-term goal of achieving net zero operational emissions by 20501
The Big Australian has also signed power purchase agreements to provide renewable energy to its Nickel West operations in Western Australia, Olympic Dam operations in South Australia, BMA operations in Queensland and the Escondida copper mine in Chile.
“The world needs WA’s high quality iron ore to support economic development and decarbonisation, and we are committed to supplying iron ore more sustainably while investing in WA and creating local jobs,” said BHP’s WA iron ore asset president, Brandon Craig.
For Alinta, the deal with BHP confirms growing demand from big industrial customers seeking cheaper, low emissions renewables in their energy supply, both for economic reasons and to meet significant decarbonisation targets.
“This is exactly the kind of leadership, progress and smart use of renewables and storage that we need from companies like BHP to show the way forward for Australia,” said Alinta managing director and CEO Jeff Dimery on Tuesday.
“We’re excited to get the project underway and thank BHP for their partnership and vision.”
Alinta says the construction of the solar farm, which is subject to final regulatory approvals, is expected to begin in December 2022 and create 200 jobs.
The two companies say they are committed to maximising local and Indigenous content, including opportunities for local, Pilbara Aboriginal and Kariyarra Traditional Owner businesses.
