What’s up with BHP’s (ASX:BHP) shares post renewables deal?

2 min read | November 04, 2022 12:29 PM AEDT | By Tamnna

Image source: © Transversospinales | Megapixl.com

A glance at the Neoen deal

BHP Group stated to reduce operational emissions by 30% in its 2022 annual report by FY2030. After Alinta Energy, this partnership with Neoen is the next step towards completing the company’s decarbonisation targets.

With the aid of this renewable energy deal, BHP hopes to meet half of its anticipated electricity needs at Olympic Dam.

According to Neoen's official release, the firm will combine the production from its Goyder South Stage 1 wind farm with storage from its Blyth Battery project to provide BHP with an unlimited supply of renewable energy. Neoen's expertise in energy management will also help to support this 24/7 energy supply.

Neoen’s under-construction Goyder South stage 1 wind farm is being built to have a capacity of 412MW. This project, Goyder Renewable Zone, is situated close to Burra in South Australia’s Mid-North region and is a hybrid wind, solar, and storage project. Neoen expects the region’s outstanding wind resources to make this project excel in both size and competitiveness.

Stage 1 of this wind farm will be completed in two parts:

Two long-term power purchase agreements with the Australian Capital Territory (ACT) Government and Flow Power will support 209MW capacity.
This 70 MW BHP baseload contract is anticipated to support the remaining 203MW.

Talking about this contract, Jennifer Purdie, Olympic Dam Asset President, BHP, said:

Data Source: Neon announcement dated 3 November 2022

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.