The BHP Group Ltd (ASX: BHP) share price closed higher on Thursday. This comes after the company revealed its latest efforts to reduce greenhouse gas emissions.
At the final bell, BHP shares were changing hands for $37.80, up 0.56%.
BHP on verge on striking a deal
BHP today advised it expects to enter into renewable energy supply arrangements with Iberdrola in the near future.
Founded in 1992, Iberdrola is a Spanish multinational electric utility company that is spearheading the development of green hydrogen. The energy business is aiming to meet demand for electrification and decarbonisation in sectors such as industry and heavy transport.
Under the deal, half of the energy needs for South Australia’s Olympic Dam will come from renewable sources by 2025. This will see the Olympic Dam reduce its emission position to zero for 50 per cent of its electricity consumption by 2025.
The energy will be supplied by Iberdrola, coming from the Port Augusta Renewable Energy Park in South Australia. Due to be completed in July 2022, this will become Australia’s largest solar-wind hybrid plant.
BHP noted it would be the primary customer of the new renewable facility once constructed. In turn, this is expected to help it achieve its medium-term target to reduce operational greenhouse gas emissions by 30% from FY20 levels by FY30.
BHP Olympic Dam asset president Jennifer Purdie commented:
These arrangements will support an exciting new renewable energy project which will contribute to South Australia’s renewable energy ambitions.
Olympic Dam’s copper has an important role to play to support global decarbonisation and the energy transition as an essential product in electric vehicles and renewable infrastructure. Reducing emissions from our operations will further enhance our position as a sustainable copper producer.
It’s worth noting that BHP entered into renewable energy agreements for its operations in Western Australia in 2021, Queensland in 2020, and Chile in 2019.
BHP share price summary
Over the past 12 months, BHP shares have moved in circles to post a small gain of 5%. However, the latest iron ore rout has led the company’s shares to fall by 10% this year.
BHP has a market capitalisation of roughly $112.6 million, with almost 3 billion shares on its books.