The 10-year agreement will help BHP reduce emissions from electricity use at the refinery by up to 50% by 2024, based on FY20 levels.
This will effectively displace an estimated 364,000 tonnes of carbon dioxide over the life of the contract, the equivalent of removing 11,200 combustion engine cars from WA's roads every year.
The contract is the first renewable energy PPA signed by BHP in Western Australia and follows renewable agreements covering BHP's operations in Queensland in 2020 and in Chile in 2019.
"This contract will further increase the sustainability of the nickel produced by Nickel West," asset president Eddy Haegel said.
"It will reduce the refinery's electricity emissions by 50%, diversify our energy supply, and reduce the refinery's electricity bill.
"Nickel is a future-facing commodity that is essential to creating the high performing lithium-ion batteries used in battery electric vehicles (BEV). Consequently, the demand for nickel and especially the nickel produced by Nickel West is set to grow dramatically. The sustainable production of nickel is also essential to meet this future demand as the customers purchasing BEVs want to know that the inputs to the manufacturing of these vehicles are also sustainable.
"Nickel West is already one of the most sustainable nickel producers in the world but has committed to significantly reduce CO2 emissions further.
"This contract, combined with our high quality nickel deposits, and our integrated value chain further improves our position as one of the lowest carbon nickel miners in the world."
The contract will contribute to BHP's target to reduce scope 1 and 2 emissions by 30% by 2030.
WA mines and petroleum minister Bill Johnston congratulated BHP for taking another step to reducing its carbon footprint.
"BHP's Kwinana nickel refinery is a key contributor to WA's future battery industry, and is helping global efforts to decarbonise," he said.
"The McGowan government is supportive of mining and resources companies that embrace clean energy solutions."
