Neoen and BHP have signed a 70MW renewable energy baseload contract.
Neoen, a french renewable energy developer, will provide power for operations at BHP’s Olympic Dam in South Australia. It operates as a fully integrated processing facility located 560 kilometers north of Adelaide, South Australia. The Olympic Dam is one of the world’s famous underground mines for copper, uranium, silver, and gold.
The 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 decarbonization journey and provide new firmed renewable energy and increased stability to the South Australian grid.’
Vandita Pant, BHP’s Chief Commercial Officer, also stated that ‘BHP is consciously working towards our target of at least a 30 percent 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.’
For Neoen, this baseload contract is a first of its kind with the mining giant BHP. Neoen will supply power via a wind and battery storage combination. While the wind power will be from the Goyder South wind farm, Blyth will provide the battery storage option.
The first stage of the Goyder wind farm is a 412 MW wind farm under construction. It is a hybrid wind, solar, and storage project known as Goyder Renewables Zone. Located near Burra in South Australia’s Mid-North region, the wind farm will be top-tier upon completion. The 412MW wind farm is in two parts; a 203MW part held up by the new 70MW contract with BHP and a 209 MW held up by two long-term PPA (power purchase agreements) with the Australian Capital Territory Government and Flow Power.
Also located in South Australia, Blyth Battery is under development by Neoen. It is a utility-scale battery project that is a 300MW battery that may have up to 800MWh of storage upon completion.
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.’
The director explained that this contract will enable Neoen as a renewable energy company to take from its previous renewable generation and storage assets for a stable supply of green power. It will deliver green energy along with the required energy management expertise and the associated large-scale certificates (LGC).
Xavier Barbaro, Neoen’s Chairman, and Chief Executive Officer concluded, ‘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 great market opportunities in Australia and the rest of the world.’
The contract will offer power 24/7 to meet an expected 50% of Olympic Dam’s forecast electricity needs from 2025.
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