BHP nickel mines begin shift to renewables, as works start on solar and battery

BHPs Nickel West facility in Kalgoorlie. Credit: BHP.

The plans of mining giant BHP to power its Nickel West operations in Western Australia with solar and battery storage – with the likely future addition of wind – are officially underway, with construction kicking off at the Northern Goldfields solar project.

BHP said on Wednesday that works had begun on the off-grid solar and storage systems, while also revealing that its partner on the project, Trans Alta, had started scouting for suitable sites to add up to 50MW of wind generation to mix.

As it currently stands, the Northern Goldfields solar and storage project includes a 27.4MW solar farm at BHP’s Mt Keith open pit nickel mine and 10.7MW of solar and a 10.1MW (MWh not specified) battery at the Leinster open pit and underground nickel mine.

The solar and battery, which will replace power currently supplied by diesel and gas, will be integrated into TransAlta’s Northern Goldfields remote power grid, and owned and operated by TransAlta as part of a power purchase agreement (PPA) extension signed in October 2020.

The solar and battery systems are expected to help BHP Nickel West reduce its scope 2 emissions at its Northern Goldfields operations by 12 per cent.

Adding a wind farm – TransAlta confirmed on Wednesday that it had entered into an agreement with BHP to identify potential wind sites for 40-50MW of capacity – would reduce scope 2 emissions at Mt Keith and Leinster by a further 30 per cent, it is estimated.

BHP’s plan to build power its Northern Goldfields with renewables was first announced soon after the mining giant inked a major deal with Tesla, for the US electric vehicle and battery giant to source Australian nickel from its Nickel West operations.

And in August of 2021, BHP expanded on the renewable energy plans for Nickel West by announcing an extension of its power purchase agreement with the Merredin solar farm and potential wind farms across its operations in Western Australia.

The construction phase of the Northern Goldfields solar project is expected to create more than 100 direct and indirect jobs in the Goldfields and Perth regions and should produce its first solar power by November 2022, the companies said.

TransAlta’s contractor, juwi, has awarded Cundaline Resources the primary civil contractor role on the solar and storage project – an Aboriginal business whose owners include members of the Tjiwarl Aboriginal Corporation.

“The Northern Goldfields Solar Project is BHP’s first off-grid large-scale renewable energy project across our  global operations,” said BHP Nickel West asset President Jessica Farrell, noting this particular project’s role in delivering sustainable low carbon nickel for battery and electric vehicle manufacturers.

“It is also very exciting that following years of close engagement with the Tjiwarl Native Title Holders, our project has contracted the services of a local Aboriginal business, boosting opportunities for people in the local community and across the northern Goldfields generally,” she said.

Western Australia energy minister Bill Johnston said that all of the companies involved in the project were setting a great example of “new” social and environmental standards.

“The McGowan government is supportive of mining and resources companies that are embracing renewable  energy solutions, which all contribute to our target of net zero carbon emissions by 2050,” Johnston said.

“Nickel is a key ingredient for a low carbon energy future, and this is another step forward for the McGowan  Government’s Future Battery Industry Strategy.”

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