BHP has signed a large-scale renewable power purchase agreement for a solar farm connected to its WA Iron Ore port facilities in Port Hedland.
Under the agreement with Australian power company Alinta Energy, BHP expects to halve emissions from the generation of electricity at the port facility by 2024.
BHP said the agreement will see the construction and connection of a 45 megawatt solar farm and 35 megawatt battery energy storage system into Alinta Energy’s existing Port Hedland power station, which is around 14 kilometres away from BHP’s port facilities.
Construction of the solar farm is expected to begin in December this year, though is subject to final regulatory approvals.
Once the project is complete, BHP expects 100% of the forecast average daytime energy requirements for its port facilities to be powered by solar generation.
The remaining power requirements will be met through the integrated battery energy storage system and market access to Alinta Energy’s existing gas fuelled power station facilities.
BHP is reportedly the foundation customer of Alinta’s battery hybrid project, which is on track be the first large scale renewable facility at Port Hedland.
The project is expected to support the expansion of the renewable energy industry in Western Australia.
“The world needs Western Australia’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,” BHP WA Iron Ore asset president Brandon Craig said.
“We are delighted to expand our partnership with Alinta Energy as we seek to lower emissions from our Western Australia iron ore business.”
Alinta Energy managing director and CEO Jeff Dimery said the energy company was excited to get the project underway and thanked BHP for its partnership and vision.
“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.,” he said.
Alinta and BHP said the project will create opportunities for local Kariyarra Traditional Owner businesses.
BHP and Alinta Energy have also entered into a memorandum of understanding in relation to the development of the Shay Gap Wind Farm.
The Shay Gap Wind Farm is currently planned to be 45 megawatts, with a potential first-generation date of 2027.
