Newcrest goes green at Cadia

NEWCREST Mining has signed a 15-year power purchase agreement with Tilt Renewables as part of a plan to reduce greenhouse gas emissions by about 20%.
Newcrest goes green at Cadia Newcrest goes green at Cadia Newcrest goes green at Cadia Newcrest goes green at Cadia Newcrest goes green at Cadia

Newcrest's Cadia mine in New South Wales

Staff reporter

Tilt is developing the A$700 million Rye Park wind farm, about 185km from Newcrest's Cadia operation at Orange in New South Wales.

Rye Park is expected to begin commercial operations in January 2024.

Newcrest will contract for about 55% of Rye Park's planned 400 megawatt output, which is equivalent to more than 40% of Cadia's projected energy demand from 2024.

The Rye Park wind farm will become the largest wind farm directly enabled by a corporate power purchase agreement (PPA) in Australia and the project is now expected to move from the development stage into financing and construction.

The PPA is conditional on Tilt achieving financial close for the project and is a contract for difference, which requires no upfront capital investment by Newcrest.

Tilt is aiming to make a financial investment decision in the next 6-9 months.

Newcrest said the PPA would act as a partial hedge against future electricity price increases and would also provide Newcrest with access to large-scale generation certificates which it intends to surrender to achieve a reduction in greenhouse gas emissions.

"This new contract secures renewable energy for our Cadia operations, reduces carbon emissions and helps us maintain competitive energy costs," Newcrest managing director and CEO Sandeep Biswas said.

"This is a critical step in our transition to sustainable energy use at our operations."

Newcrest is aiming to lower greenhouse gas emissions by 30% by 2030.

"We continue to explore ways to reduce Cadia's emissions intensity and our long term aim is to virtually eliminate Cadia's energy-related greenhouse gas emissions," Biswas said.

"In addition, we continue to pursue emissions intensity reduction initiatives at our other operating sites."

Shares in Newcrest were up 0.9% to A$26.92, while Tilt shares rose 4.5% to $5.02.