BHP secures renewable power purchase agreement in Qld
King & Wood Mallesons (KWM) has assisted BHP in a renewable power purchase agreement for a Queensland mining operation.
Firm: King & Wood Mallesons (BHP)
Deal: Global firm King & Wood Mallesons (KWM) has advised BHP on its renewable power purchase agreement (PPA) for its Queensland mining operations as it continues to transition to more sustainable energy use.
Area: Mining and energy.
Key players: The deal team was led by partner Vishal Ahuja and supported by senior associate Shirley Cheng and solicitor Hugh Read.
Deal significance: 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 per cent of the electricity needs of BHP in 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.
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.
Commenting on the deal, Mr Ahuja 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.”