Slide 1: Operational decarbonisation
Operational decarbonisation 21 June 2023 Merredin Solar Farm, Western Australia
Slide 2: Disclaimer
Disclaimer Forward-looking statements This presentation contains forward-looking statements, which may include, without limitation, statements regarding: (i) our strategy, our values and how we define success; (ii) our commitment to generating social value; (iii) our commitments under sustainability
Slide 3: Operational decarbonisation: Overview
Operational decarbonisation Overview Dr. Graham Winkelman Head of Carbon Management, Sustainability & Climate Change
Slide 4: Our focus on operational decarbonisation
Our focus on operational decarbonisation Working with global partners and other stakeholders in the value chain On track to reduce our operational emissions by at least 30% by FY30 from FY20 levels We have an aspirational goal to achieve net zero operational emissions by 2050 To succeed: • technolog
Slide 5: Enabling the world's response to climate change
Enabling the world's response to climate change Metals and minerals are essential for the world to develop and achieve its decarbonisation ambitions Large cumulative demand increases across commodities1 (%, next 30 years compared to the last 30 years) 400% Hundreds 300% Up to 7 Mtpa primary copper d
Slide 6: Good progress versus our competitors
Good progress versus our competitors Early action places BHP amongst the lowest absolute operational emissions relative to other major miners Progress to date and operational emissions intensity Increasing 20% Anglo American emissions and higher emissions 15% intensity (average annual % change from
Slide 7: BHP is delivering on operational decarbonisation
BHP is delivering on operational decarbonisation We are working towards decarbonising our operations while supplying the minerals the world needs to deliver the energy transition Focus Our FY30 target and 2050 goal set the direction to guide and challenge the business and provide clarity to supplier
Slide 8: Positive steps taken towards our FY30 target
Positive steps taken towards our FY30 target BHP is firmly focused on reducing operational emissions and has made good progress to date Operational GHG emissions (Mt CO2-e) 16 ▼24% 14 Other (15%) 12 10 Other Electricity (20%) (43%) 8 Electricity (28%) 6 4 Diesel Diesel (42%) (52%) 2 0 FY20 Chile Aus
Slide 9: BHP's operational decarbonisation trajectory
BHP’s operational decarbonisation trajectory Decarbonisation will be non-linear and will require significant effort to overcome emissions growth and technology challenges BHP’s net zero trajectory: significant early action with future BHP’s net zero cumulative emissions trajectory range of uncertain
Slide 10: Operational decarbonisation: Minerals Americas
Operational decarbonisation Minerals Americas Alejandro Tapia Vice President Planning and Technical Minerals Americas Escondida
Slide 11: BHP at the forefront of the sector's sustainability efforts
BHP at the forefront of the sector's sustainability efforts Facilitated region's move to renewable power, positioning operations for further electrification 100% thermal coal power Break status-quo First wave of optimisations Next wave of optimisations • Highly concentrated market • Increase in powe
Slide 12: Chilean operational emissions snapshot
Chilean operational emissions snapshot Early progress enhances competitiveness of future Scope 1 reduction projects FY20 emissions split by asset1 Future power requirements3 (kt CO2-e and %) Escondida Pampa Norte (TWh/y) 5,016 ▲70% Pampa FY20 asset 21% 17% Norte emissions split 39% by source1 (%) 61
Slide 13: Displace 100% of diesel in boilers at cathode operations
Displace 100% of diesel in boilers at cathode operations First major step to displace Scope 1 emissions at Escondida and Spence in Chile Project impact1 Project scope Copper rollout • Displace diesel consumption from CY25 in Solar collectors use • Operations scheduled to start in CY25 stationary equ
Slide 14: Trolley assist to advance fleet decarbonisation in Chile
Trolley assist to advance fleet decarbonisation in Chile Trolley assist to aid in delivering FY30 operational emissions reduction target Electric fleet transition1 Project definition Stage 1 Stage 2 • Installation of electric trolley power lines to power the electric drives of diesel - electric truc
Slide 15: Sustainable future: operations powered by renewables
Sustainable future: operations powered by renewables Vision to maximise sustainability at Escondida and Spence over the next 10-15 years Ambition includes… Electricity Desalination Diesel displacement • 100% renewable PPAs to power operations • Escondida and Spence concentrators • Zero emissions mat
Slide 16: Potash: Jansen has a low emissions design
Potash: Jansen has a low emissions design Designed to maximise sustainability, with low operational emissions, and to enable a path to net zero Stage 1 operational GHG emissions1 Highly efficient from day 1 Investment in path to net zero (% emission source) Working with local Saskatchewan Jansen exp
Slide 17: Operational decarbonisation: Minerals Australia
Operational decarbonisation Minerals Australia Anna Wiley Vice President Planning and Technical Minerals Australia Western Australia Iron Ore
Slide 18: Australian operational emissions snapshot
Australian operational emissions snapshot Strong progress made in reduction of Scope 2 emissions by signing multiple low emissions PPAs at Australian assets FY20 emissions split by asset1 (kt CO2-e and %) BMA WAIO NiW OD 9,327 NSWEC 7% FY20 asset 11% 20% 23% 22% OD 7% emissions split 13% 45% by sour
Slide 19: Haul trucks are the largest user of diesel in Australia
Haul trucks are the largest user of diesel in Australia Our preferred pathway to eliminate diesel is via electrification Diesel use Direct electrification is the most efficient2 by type of ~1,500 equipment1 ML (%) Average annual Fuel source Electricity Hydrogen Diesel diesel consumption1 Fuel-to-tan
Slide 20: Partnering widely and building our knowledge base
Partnering widely and building our knowledge base Operational trials and collaboration with our vendors and industry to accelerate development are critical to success Concept of Operations modelling showing potential locations of Operating BHP operating BHP target charging stations4 Partners prototy
Slide 21: Battery truck opex expected to be comparable to diesel
Battery truck opex expected to be comparable to diesel Understanding of battery electric truck operating costs are developing and we will learn more through operational trials Opex changes between diesel and electric truck fleet1 Fuel source • Removes the need to purchase diesel and any associated c
Slide 22: Powering our mines in the Pilbara
Powering our mines in the Pilbara We are working on technical solutions to meet the growing demand for power due to fleet electrification Indicative future Pilbara installed generation1 (MW) 800 Yarnima (Gas) Wind Solar Storage 600 • Our inland Pilbara operations are not connected to an electricity
Slide 23: Addressing methane emissions
Addressing methane emissions BMA’s higher quality metallurgical coal helps steel mills reduce their own emissions intensity • Methane accounted for 32% of BMA’s and 15% of Minerals 2021 carbon intensity – metallurgical coal Australia’s reported operational emissions for FY201 (Tonnes CO2-e per tonne
Slide 24: Operational decarbonisation: Decision Evaluation
Operational decarbonisation Decision Evaluation Patrick Collins Head of Decision Evaluation Transformation Portfolio & Performance BMA
Slide 25: Operational decarbonisation is owned by our assets
Operational decarbonisation is owned by our assets Decarbonisation commitments are embedded in mine plans for all operated assets Corporate Alignment Planning Capital Allocation Framework Key decisions made in line with Asset strategy Operating productivity Capital productivity corporate and commodi
Slide 26: Operational decarbonisation capital expenditure
Operational decarbonisation capital expenditure Decarbonisation investments compete for capital under the Capital Allocation Framework Capex spend FY24 - FY30 by asset 6% Expected capital expenditure to FY301 11% WAIO ~US$4 billion Escondida 40% 12% BMA Majority of spend toward end of decade allowin
Slide 27: Operating cost savings from future investments to FY30
Operating cost savings from future investments to FY30 Majority of savings expected to be realised post-2030, driven by technology-reliant diesel reduction projects and carbon price benefits Potential net opex savings - projects with investment FY24 - FY301 Potential opex savings2 by project type (U
Slide 28: Marginal Abatement Cost Curve
Marginal Abatement Cost Curve Our group portfolio Marginal Abatement Cost Curve allows us to rank and prioritise projects for efficient capital deployment Marginal Abatement Cost Curve1 (US$/tCO2-e) 800 Diesel Gas Electricity Fugitives / Other 600 400 Project portfolio to achieve FY30 target is NPV
Slide 29: Our focus on operational decarbonisation
Our focus on operational decarbonisation Working with global partners and other stakeholders in the value chain On track to reduce our operational emissions by at least 30% by FY30 from FY20 levels We have an aspirational goal to achieve net zero operational emissions by 2050 To succeed: • technolog
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