BHP is set to trial the use of renewable fuel at its Yandi iron ore operations in Western Australia to help power mining equipment.
As part of the trial, the firm will use renewable diesel made from hydrotreated vegetable oil (HVO), which is supplied through a collaboration with bp.
During the initial three-month trial period, the renewable diesel is to be used in haul trucks and other mining equipment.
BHP Western Australia Iron Ore (WAIO) asset president Brandon Craig said: “About 40% of BHP’s operational greenhouse gas emissions come from using diesel fuel, and this is a core focus of our decarbonisation strategy.
“Ultimately, our aim is to have fully electric trucking fleets at our sites, but alternative fuels like HVO may help us reduce our emissions in the meantime while the electrification transition takes place.”
BHP is considering using the renewable diesel in its WAIO business and global operations.
Located 178km north-west of Newman, Pilbara, Western Australia, the Yandi mine produced 253 million tonnes of iron ore last year.
bp Australia president and Asia Pacific fuels and low-carbon solutions senior vice-president Frederic Baudry said: “Globally, bp plans to increase its investment in low carbon energy. Forging strategic partnerships with companies like BHP enables bp to create solutions that satisfy the increasing demand for lower carbon fuels in sectors like mining and transport.”
By 2030, BHP aims to cut down operational greenhouse gas emissions by at least 30% from a 2020 baseline.
Last month, reports emerged that BHP was mulling early closure of its Mt Arthur coal mine in New South Wales (NSW), Australia, due to increased concerns over domestic coal requirements.
The move follows the NSW government’s mandate of requiring coal producers to reserve 10% of their output for domestic use at a capped price of $125 per tonne.