PERTH (miningweekly.com) – Diversified major BHP’s Nickel West division has inked a renewable power purchasing agreement (PPA) to supply up to 50% of its electricity needs at the Kwinana refinery from Merredin Solar Farm.

The miner said this week that the agreement, with Western Australia’s largest solar farm would help reduce emissions from electricity use at the refinery by up to 50% by 2024, based on 2020 levels. 

The agreement with Risen Energy would span for a period of ten years, starting from February 2021, and would effectively displace an estimated 364 000 t of carbon dioxide equivalent over the life of the contract. This is the equivalent of removing 11 200 combustion engine cars from Western Australia’s roads every year, the miner said.

This is the first renewable energy PPA signed by BHP in Western Australia and follows renewable agreements covering BHP’s operations in Queensland in 2020 and in Chile in 2019.  

“This contract will further increase the sustainability of the nickel produced by Nickel West. It will reduce the refinery’s electricity emissions by 50%, diversify our energy supply, and reduce the refinery’s electricity bill,” BHP Nickel West asset president Eddy Haegel said.

“Nickel is a future-facing commodity that is essential to creating the high-performing lithium-ion batteries used in battery electric vehicles (BEV).

“Consequently, the demand for nickel, and especially the nickel produced by Nickel West, is set to grow dramatically. The sustainable production of nickel is also essential to meet this future demand as the customers purchasing BEVs want to know that the inputs to the manufacturing of these vehicles are also sustainable. 

“Nickel West is already one of the most sustainable nickel producers in the world but has committed to significantly reduce carbon dioxide emissions further.

“This contract, combined with our high quality nickel deposits, and our integrated value chain further improves our position as one of the lowest carbon nickel miners in the world,” said Haegel.

The contract will contribute to BHP’s medium-term, science-based target to reduce scope 1 and 2 emissions by 30% by 2030.