Stanwell bags 100% green power supply deal for Anglo American's Aussie ops

Queensland government-owned energy generator Stanwell Corp has struck a deal with Anglo American Plc (LON:AAL) that will enable the mining multinational to use 100% renewable power for its Australian operations.

The 10-year contract calls for Stanwell to supply renewable electricity to five steelmaking coking coal activities of Anglo American across central Queensland’s Bowen Basin. Deliveries will begin from 2025, the Queensland government said on Wednesday.

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The green power volumes will come from Squadron Energy’s 450-MW Clarke Creek wind farm, for which Stanwell has in place a 346.5-MW power purchase agreement (PPA), and the 200-MW Blue Grass Solar Farm being built by Spain’s X-Elio. Both projects are located in Queensland. The electricity will be used to power all electrical equipment and infrastructure facilities at Anglo American’s mines in Moranbah, Middlemount and Moura.

Through the supplies, the mining group will eliminate the Scope 2 emissions from its metallurgical coal business in Australia from 2025. “Securing 100 per cent renewables from Stanwell is a major step towards our target of carbon neutral operations in Australia – and globally – by 2040,” said Dan van der Westhuizen, CEO of Anglo American in Australia.

The agreement with Anglo American is Stanwell’s biggest retail deal. It comes on the heels of its deal from earlier this week to supply 185 GWh of wind and solar power to Brisbane Airport Corporation.