King & Wood Mallesons (KWM) has advised BHP on its renewable power purchase agreement (PPA) for its Queensland mining operations, as the mining company continues to transition to more sustainable energy use.
The five year PPA will be delivered with CleanCo, a Queensland Government owned clean energy generator and retailer, for the supply of low emission electricity covering 50% of the electricity needs of BHPs Queensland coal mines. The agreement will also support the development of renewable power projects in Queensland such as the Western Downs Green Power Hub, due for completion in late 2022, and the Karara Wind Farm due for completion in early 2023.
The KWM deal team was led by Partner Vishal Ahuja supported by Senior Associate Shirly Cheng and Solicitor Hugh Read.
Commenting on the deal, Vishal Ahuja, Partner, said:
"We are delighted to assist BHP with this important step in achieving its sustainability goals. The agreement continues the trend of corporates contracting renewable generation and integrating renewables into their broader energy procurement."
For the first two years, power will be contracted from CleanCo's low emissions portfolio. From late 2022, the newly operational solar and wind farms are expected to progressively contribute up to half the electricity requirements, with the remainder supported by CleanCo's low emissions portfolio.
The PPA will be instrumental in enabling BHP to reduce Scope 2 emissions from its Queensland operations by 50 per cent by 2025, based on FY2020 levels.
