February 4 (Renewables Now) - Canada-based Teck Resources Limited (TSX:TECK.A) has signed a long-term power purchase agreement (PPA) with AES Corp (NYSE:AES) for 118 MW of renewable energy supply to a copper project in Chile.
Under the agreement, inked by the Chilean affiliates Compania Minera Teck Quebrada Blanca SA (CMTQB) and AES Gener SA, the former will buy electricity for the Quebrada Blanca Phase 2 (QB2) project from AES Gener’s growing wind, solar and hydro portfolio, in addition to the 21-MW of solar power already contracted.
The contract will become effective as early as January 2022 and last through October 2042. It will cover more than 50% of QB2’s total operating power needs, allowing Teck to offset around 800,000 tonnes of greenhouse gas (GHG) emissions per year, the company said in its press release.
According to AES Gener's general manager, Ricardo Manuel Falu, the contract also supports the decarbonisation of the Chilean energy mix. CMTQB's previous arrangements with AES Gener, totaling 122 MW of power, are not impacted by the new PPA.