Neoen has signed a 70MW renewable energy baseload contract with BHP to supply power to BHP’s Olympic Dam operations in South Australia, one of the world’s most significant deposits of copper, gold and uranium.
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 decarbonisation journey, and provide new firmed renewable energy and increased stability to the South Australian grid.”
Under the contract, Neoen will deliver a 24/7 green energy solution to the mine – along with the associated large-scale certificates (LGC) – and is expected to meet half of Olympic Dam’s overall electricity needs from July 2025.
Neoen will dedicate half of the output of the Goyder South Stage 1 wind farm to the contract, firming the intermittent wind energy and combining the storage capacity of Blyth Battery and its energy management expertise.
Goyder South Stage 1 is a 412MW wind farm currently under construction and the first phase of Neoen’s flagship project known as Goyder Renewables Zone, a hybrid wind, solar and storage project, located near Burra in South Australia’s Mid North region.
The wind resources of the area contribute to making this project world-class in terms of both size and competitiveness.
Stage 1 consists of two parts: 209MW underpinned by two long-term power purchase agreements with the Australian Capital Territory Government and Flow Power, and 203MW underpinned by this new 70MW baseload contract with BHP.
Neoen Australia’s Managing Director, Louis de Sambucy, said the company is delighted to provide BHP with this 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.”
Blyth Battery is a utility-scale battery project located in Blyth, South Australia. The project has been developed by Neoen over the last two years and received planning consent for up to 300MW in April 2022.
This new contract demonstrates Neoen’s ability to leverage, in an innovative way, its portfolio of renewable generation and storage assets to offer, for the first time, firm delivery of green power.
BHP’s Chief Commercial Officer, Vandita Pant, said, “BHP is consciously working towards our target of at least a 30 per cent 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.”
Neoen’s Chairman and Chief Executive Officer, Xavier Barbaro, said, “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 in the rest of the world.”
