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BHP Secures Third and Largest Renewable Energy Deal for South Australian Copper Operations

Last Updated on Sep 25, 2025, 12:54 PM IST
BHP Secures Third and Largest Renewable Energy Deal for South Australian Copper Operations

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BHP has entered into its third and largest renewable electricity supply arrangement for Copper SA, marking another significant step in the mining giant's operational decarbonization efforts while unlocking substantial new investment in renewable generation across South Australia. The announcement was made on September 24, 2025.

Power Supply Arrangement Details

Under this baseload electricity arrangement, 100 megawatts (MW) of renewable electricity will be supplied to power BHP's Copper SA province, including the Olympic Dam mine, smelter, and refinery, as well as the Carrapateena and Prominent Hill operations. The electricity supply will be supported by output from the first 300 MW of Neoen's Goyder North Wind Farm, firmed by their new Goyder Battery with a minimum capacity of 200 MW / 800 MWh, and Neoen's in-house energy management expertise.

Both assets are currently under development near Burra in South Australia's mid-north, with BHP serving as the primary customer. This arrangement represents BHP's third renewable electricity supply agreement in South Australia over the past four years, and its second with Neoen specifically.

Employment and Regional Impact

Neoen expects these two assets to create up to 550 construction jobs and 20 permanent jobs, supporting regional employment while contributing to the state's energy transition. The project will contribute to a more resilient energy future for South Australia through the development of new infrastructure that supports regional communities and creates local jobs.

Combined with the existing Neoen renewable electricity supply arrangement, which successfully commenced in July 2025, this new electricity supply arrangement is expected to meet approximately 70% of Copper SA's electricity needs from renewable sources in FY2030, based on current forecast demand.

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Decarbonisation Targets and Strategic Goals

This commitment aligns with BHP's medium-term target to reduce operational greenhouse gas emissions (Scopes 1 and 2 emissions from its operated assets) by at least 30% by FY2030, compared to an adjusted FY2020 baseline, and contributes to the company's long-term goal of achieving net-zero operational greenhouse gas emissions by calendar year 2050.

The new arrangement is part of BHP's ongoing efforts to induce investment in renewable electricity supply that has seen it support five major projects in South Australia: Neoen's Goyder North Wind Farm and Goyder Battery, Neoen's Goyder South Stage 1 Wind Farm and Blyth Battery, and Iberdrola's Port Augusta Renewable Energy Park.

Executive Commentary

Anna Wiley, Asset President, Copper SA, BHP, emphasized the strategic importance of the arrangement: “BHP's Copper SA operations are taking another step forward in our decarbonisation journey with its third renewable power arrangement. We are using the size and scale of our copper operations to underpin significant new investment in renewable electricity in South Australia.”

Wiley explained that the announcement with Neoen will secure 100 megawatts of electricity by combining output from the Goyder North Wind Farm with storage from the Goyder Battery, backed up by Neoen's energy management expertise, helping to power the copper province. “This arrangement reflects our commitment to more sustainable operations and long-term partnerships.

Together with our initial arrangement with Neoen, we expect to be able to meet about 70 per cent of Copper SA's electricity needs from renewable electricity in FY2030.” Michiel Hovers, Group Sales and Marketing Officer, BHP, highlighted the broader significance of copper in the energy transition: “Copper is one of the most critical minerals in enabling the global energy transition.

As global demand for copper continues to grow, BHP is making significant progress in lowering the greenhouse gas emissions intensity of our copper production in South Australia.” Hovers noted the strength of the partnership with Neoen: “We've built a strong partnership with Neoen, which has helped BHP to make further reductions in our operational greenhouse gas emissions and will allow us to continue to deliver responsibly produced copper for our global customers.”

Jean-Christophe Cheylus, Neoen Australia's Chief Executive Officer, expressed satisfaction with the expanded partnership: “This second agreement to supply power to BHP demonstrates Neoen's end-to-end expertise in designing, delivering and deploying customised energy solutions that can meet the growing demands of its customers and support the pace of Australia's transition. I congratulate the Neoen team and thank BHP for continuing to place their trust in us.”

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