London-based multinational Anglo American (LSE: AAL) has reached an agreement with the Queensland government to supply all of its Australian power needs from wind and solar generation by 2025 and onwards.
The 10-year deal will see Stanwell Corporation, a government-owned power utility, effectively remove all scope two emissions from Anglo American’s steelmaking coal business in the country.
Scope two emissions refer to greenhouse gas released into the atmosphere from the generation of purchased energy such as electricity, steam, heat and cooling.
It aligns with Anglo’s strategy of achieving carbon-neutral operations by 2040.
Critically, Anglo American Australia CEO Dan van der Westhuizen said in a statement that Stanwell’s investment in 650 megawatts (MW) of renewable generating capacity is NPV positive compared with the current energy mix.