Stanwell inks its biggest PPA yet to supply 100 pct renewables to coal mining giant

Queensland’s state-owned utility Stanwell Corporation has signed its biggest retail power supply deal yet, to take the electricity supply for the Australian operations of mining giant Anglo American to 100 per cent renewables.

The 10-year deal will see Stanwell supply Anglo American with renewable electricity to power its five coking coal operations across central Queensland’s Bowen Basin. Coking coal is used to make steel, and is not burned for power.

These operations include all electrical equipment at Anglo American’s mines in Moranbah, Middlemount and Moura, including draglines, longwall equipment, conveyors, coal preparation facilities, lighting and ventilation and cooling infrastructure, water treatment plant and administration facilities.

For Anglo American, the supply of renewables will effectively eliminate the Scope 2 emissions from the company’s metallurgical coal business in Australia from 2025, but will do nothing to address its Scope 3, which it aims to cut by 50% by 2040.

For Stanwell, the deal with Anglo American comes hot on the heels of the renewables PPA signed with Brisbane Airport Corporation, announced at the start of this week.

Stanwell CEO Michael O’Rourke says the gentailer can offer such “bespoke, new energy solutions” due to its extensive pipeline of renewable energy projects.

As with the Brisbane Airport deal, Anglo American’s renewables will be sourced from the 450MW Clarke Creek wind farm currently being built north-west of Rockhampton in Queensland, and X-Elio’s 200MW Blue Grass solar farm, which has completed construction in the Western Downs region and had its official launch this week.

From black to green

Stanwell owns two coal-fired power stations, the 1,460 megawatt Stanwell Power Station in Central Queensland, and the 1,843 MW Tarong Power Station in southern Queensland, as well as four gas plants, and varying stakes in four coal mines which feed its coal plants.

All that makes Stanwell one of Australia’s largest energy companies, and the third biggest scope 1 greenhouse gas emitter behind AGL and Energy Australia, and ahead of Origin.

Its state government owner has recently announced plans to close all state-owned coal generators by 2035 as part of a plan to reach 80 per cent renewables in the country’s most coal dependent state by that time.

A win-win-win

In a statement on Wednesday, the CEO of Anglo American in Australia, Dan van der Westhuizen, said the PPA will support Stanwell’s investment in 650MW of renewables capacity for Queensland.

“Many of the metals and minerals we produce – including steelmaking coal – are critical to supporting decarbonisation projects and the transition to renewable energy,” he said.

“We are committed to playing our part against climate change, including through renewable energy use and accelerating a number of technologies to abate our on-site emissions, from electrifying our mobile equipment to capturing the methane from our steelmaking coal operations.”

Queensland premier Annastacia Palaszczuk said the deal between Anglo American and Stanwell demonstrated the strong shift to clean energy by Queensland businesses.

“Stanwell is one of Queensland’s major energy suppliers, and until recently has been known only for coal-fired energy generation.

“The Queensland Energy and Jobs Plan is my government’s commitment to delivering an energy system that brings more cleaner, cheaper energy to households and businesses, while capitalising on the economic opportunities partnerships like this provide,” the premier said.

“Boardrooms across the nation and the world, are setting their own emissions reduction targets, so it makes supporting Queensland industry with clean energy a priority,” added state energy minister Mick de Brenni.

“Today’s announcement shows Queensland’s energy transformation is well and truly happening, and it’s supporting traditional industries to remain strong.”