France’s Neoen SA (EPA:NEOEN) has struck a deal with BHP Group (ASX:BHP) to supply the mining giant’s operations in South Australia with a combination of wind and battery storage capacity.
The power purchase agreement (PPA) is the first of its kind baseload contract for the French firm, it said on Thursday. The deal is tied to 70 MW of capacity and will provide BHP with a 24/7 green energy solution and related large-scale certificates (LGC) for its Olympic Dam copper, gold and uranium mine.
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The contract will come into force in July 2025 and will meet half of Olympic Dam’s electricity consumption.
Neoen said that the wind power capacity will come from its 412-MW Goyder South Stage 1 wind farm in South Australia, which entered construction this summer and also has PPAs in place with the Australian Capital Territory (ACT) and power retailer Flow Power for 209 MW. Around 203 MW of the scheme is underpinned by the BHP deal, Neoen said.
BHP’s Olympic Dam operations will be also supported by its 300-MW Blyth battery project in South Australia, which was awarded a planning permit in April.
“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," said Louis de Sambucy, Neoen Australia’s managing director.