Commodity giant BHP has halted construction of key renewable energy projects in Australia. This puts its own climate targets far behind and calls into question the credibility of its emissions reduction strategy. Critics point to record profits and speak of misplaced priorities. (abc.net: 08.09.25)
BHP Investment Cuts
BHP planned to invest $3 billion in over 500 megawatts of wind power, solar, and battery storage as recently as 2023. Plans included a 50-megawatt solar field at the Jimblebar mine and a battery system in Newman. Together, these facilities were expected to reduce emissions by 15 percent and reduce Australia’s dependence on diesel.
But confidential documents show that the project was discontinued. The company cites capital constraints as the reason. Instead of its own projects, BHP is now relying on external partners to offer commercial renewable energy solutions.
Contradiction with climate targets and contracts
Expert Tim Buckley of Climate Energy Finance sharply criticized the move. In his opinion, the approach contradicts international agreements. He emphasizes that solar and battery systems have reduced emissions while simultaneously saving costs.
“This is an extremely disappointing result for BHP,” said Buckley. He believes the company is not only jeopardizing its own climate targets, but is also complicating the government’s strategy in Australia.
Reduced investment in renewable energies
In its annual report, the company disclosed that it was reducing its funding for decarbonization to 500 million US dollars. Previously, four billion dollars had been budgeted. At the same time, almost ten billion dollars were invested in global projects.
The postponement of electric train and truck technologies is particularly striking. According to BHP, development is delayed, which is why investments in this area are not planned until the 2030s. This will cause emissions to rise again.
Australia and the Pilbara Issue
At the same time, the government of Western Australia is pushing ahead with a shared power grid in the Pilbara. Until now, the mining companies have operated their own facilities. Integration could reduce costs and accelerate the expansion of renewable energy.
But experts like Buckley warn that it will likely take years for the grid to become a reality. Until then, rising emissions threaten, while climate targets seem further away. This means Australia is losing time in the race against global warming.
Political criticism of BHP
Western Australia’s Premier Roger Cook described the decision as alarming. He emphasized that companies like Rio Tinto and BHP have a moral and economic duty to actively participate in the energy transition.
Cook stated that “this won’t happen on its own. All companies must be part of the process.” Without decisive action, Australia’s climate goals will be virtually unattainable.
BHP defends its course
The company points to successes. Over 70 percent of its electricity now comes from renewable energy sources. Emissions from electricity consumption have fallen by 80 percent since 2020.
According to CEO Mike Henry, electrification remains a key focus. “Our commitments remain unchanged, and we are staying on track to 2030.” Whether this commitment is sufficient remains controversial, however, as actual emissions in Australia have barely decreased recently.