Slide 1: Operational Decarbonisation Investor Presentation news release
NEWS RELEASE Release Time IMMEDIATE Date 21 June 2023 Number 12/23 Operational Decarbonisation Investor Presentation BHP will be hosting an investor presentation today to provide an update on our progress and plans to achieve our medium and long-term operational decarbonisation target and goal. A co
Slide 2: Authorisation and contacts
Authorised for lodgement by: Stefanie Wilkinson Group Company Secretary Media Relations Investor Relations Email: media.relations@bhp.com Email: investor.relations@bhp.com Australia and Asia Australia and Asia Gabrielle Notley John-Paul Santamaria Tel: +61 3 9609 3830 Tel: +61 499 006 018 Mobile: +6
Slide 3: Operational decarbonisation
For personal use only Operational decarbonisation 21 June 2023 Merredin Solar Farm, Western Australia
Slide 4: 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 5: Operational decarbonisation: Overview
For personal use only Operational decarbonisation Overview Dr. Graham Winkelman Head of Carbon Management, Sustainability & Climate Change
Slide 6: Our focus on operational decarbonisation
Our focus on operational decarbonisation Working with global partners and other stakeholders in the value chain For personal use only 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 T
Slide 7: 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 For personal use only (%, next 30 years compared to the last 30 years) 400% Hundreds 300% Up to 7
Slide 8: 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 For personal use only 20% Anglo American emissions and higher emissions 15% intensity (average
Slide 9: 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 For personal use only Focus Our FY30 target and 2050 goal set the direction to guide and challenge the business and provi
Slide 10: 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 For personal use only (Mt CO2-e) 16 ▼24% 14 Other (15%) 12 10 Other Electricity (20%) (43%) 8 Electricity (28%) 6 4 Diesel Diesel (42%) (5
Slide 11: 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 12: Operational decarbonisation: Minerals Americas
For personal use only Operational decarbonisation Minerals Americas Alejandro Tapia Vice President Planning and Technical Minerals Americas Escondida
Slide 13: 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 For personal use only 100% thermal coal power Break status-quo First wave of optimisations Next wave of optimisations • Highly concentrated mar
Slide 14: 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) For personal use only 5,016 ▲70% Pampa FY20 asset 21% 17% Norte emissions split
Slide 15: 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 For personal use only • Displace diesel consumption from CY25 in Solar collectors use • Operations scheduled to start
Slide 16: 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 For personal use only Stage 1 Stage 2 • Installation of electric trolley power lines to power the electric drives of
Slide 17: 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… For personal use only Electricity Desalination Diesel displacement • 100% renewable PPAs to power operations • Escondida and Spence concentrator
Slide 18: 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 For personal use only Stage 1 operational GHG emissions1 Highly efficient from day 1 Investment in path to net zero (% emission source) Working with local S
Slide 19: Operational decarbonisation: Minerals Australia
For personal use only Operational decarbonisation Minerals Australia Anna Wiley Vice President Planning and Technical Minerals Australia Western Australia Iron Ore
Slide 20: 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 For personal use only 9,327 NSWEC 7% FY20 asset 11% 20% 23% 22% OD 7% emissions
Slide 21: 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 For personal use only Diesel use Direct electrification is the most efficient2 by type of ~1,500 equipment1 ML (%) Average annual Fuel source Electricity Hydrogen Diesel diesel co
Slide 22: 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 For personal use only Operating BHP operating BHP target charging stat
Slide 23: 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 For personal use only • Removes the need to purchase diese
Slide 24: 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 For personal use only (MW) 800 Yarnima (Gas) Wind Solar Storage 600 • Our inland Pilbara operations are not connec
Slide 25: 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 For personal use only Australia’s reported operational emissions for FY201 (
Slide 26: Operational decarbonisation: Decision Evaluation
For personal use only Operational decarbonisation Decision Evaluation Patrick Collins Head of Decision Evaluation Transformation Portfolio & Performance BMA
Slide 27: 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 For personal use only Corporate Alignment Planning Capital Allocation Framework Key decisions made in line with Asset strategy Operating productivity Capital productivity
Slide 28: Operational decarbonisation capital expenditure
Operational decarbonisation capital expenditure Decarbonisation investments compete for capital under the Capital Allocation Framework Capex spend FY24 - FY30 by asset For personal use only 6% Expected capital expenditure to FY301 11% WAIO ~US$4 billion Escondida 40% 12% BMA Majority of spend toward
Slide 29: Operating cost savings from future investments to FY30
Operating cost savings from future investments to FY30 Majority of savings expected to be realised post-2030, driven by technology-reliant diesel reduction projects and carbon price benefits Potential net opex savings - projects with investment FY24 - FY301 Potential opex savings2 by project type (U
Slide 30: Marginal Abatement Cost Curve
Marginal Abatement Cost Curve Our group portfolio Marginal Abatement Cost Curve allows us to rank and prioritise projects for efficient capital deployment Marginal Abatement Cost Curve1 (US$/tCO2-e) For personal use only 800 Diesel Gas Electricity Fugitives / Other 600 400 Project portfolio to achie
Slide 31: Our focus on operational decarbonisation
Our focus on operational decarbonisation Working with global partners and other stakeholders in the value chain For personal use only 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 T
Slide 32: For personal use only
For personal use only