KWM has advised BHP on a 7-year renewable electricity power purchase agreement (PPA) with CleanCo to supply renewable electricity to BHP Mitsubishi Alliance’s (BMA) steelmaking coal operations in Queensland. The agreement will supply BMA’s operations with renewable electricity commencing in 2027.
When combined with a previous renewable electricity supply agreement entered into with CleanCo in 2023, this agreement is expected to allow the BMA assets to become the first Australian operations at BHP to run under renewable power arrangements for 100 per cent of their forecast operational electricity demand from 2027.
The KWM deal team was led by Partner Vishal Ahuja, supported by Senior Associate Lucius Moser.
Commenting on the transaction, Vishal Ahuja, Partner, said:
“We are delighted to have assisted BHP in achieving what will be a very significant milestone for its BMA operations, and for its operational greenhouse gas emissions reduction target more broadly. The energy transition is continuing to gather pace in the mining sector across Australia, and this transaction is another example of that trend.”
This deal continues KWM’s long-standing support of the Australian electricity procurement component of BHP’s operational decarbonisation strategy, which has previously seen KWM assist BHP in entering into renewable and hybrid PPAs for part of forecast electricity demand for its Western Australia Iron Ore port facilities in Port Hedland, Olympic Dam operations and Nickel West operations, as well as on previous renewable and hybrid electricity supply agreements with CleanCo for the BMA operations.
