BHP skips hydrogen, turns to electric trucks after Anglo rejection
27 Jun 2024
BHP has announced an ambitious plan to replace its diesel-powered haul trucks with electric vehicles (EVs). This strategic move, following a failed takeover of Anglo American and its associated hydrogen project, is a key component of BHP's broader decarbonisation strategy presented at its investor roundtable, aimed at reducing operational greenhouse gas emissions by at least 30% by 2030.
BHP is moving straight to electric to bypass Anglo hydrogen development.
BHP's decision to electrify its mining fleet is not solely an environmental initiative but also a strategic business move.
The company anticipates significant cost savings in the long run due to the superior efficiency of EVs, enhancing operational efficiency and competitiveness.
This announcement also comes as BHP's home country Australia's hydrogen development in Newcastle, New South Wales is accelerating with Pure Hydrogen securing a long-term contract to supply hydrogen waste removal trucks to the city.
Fuel cell vehicles will be supplied by Pure Hydrogen’s subsidiary company HDrive, which is an Anglo partner.
Energy transition
To expedite its own transition, BHP is collaborating with equipment manufacturers, including Caterpillar and Komatsu, and industry partners, such as Rio Tinto.
Trials of battery-electric haul trucks are already underway in the Pilbara region of Western Australia, with the goal of having the first operational sites by the late 2020s.
BHP VP of operational decarbonisation, Dan Heal, acknowledged the complexity of this transition, stating that it will require the development of a new operational ecosystem affecting every aspect of the mine.
"Replacing diesel will require us to develop a whole new operational ecosystem to surround the fleet, and every part of the mine will be touched by this change."
The company is investing in research and development to address challenges related to mine planning, charging infrastructure, power management, and workforce skills.
Technology arms race
This also indicates a technology arms race in the mining industry with Anglo and BHP both vying for the prime position as leaders in decarbonising equipment.
Professor Sampson Mamphweli, head of energy secretariat and research lead at Sanedi, told Bizcommunity in a recent interview that “Anglo American is working on the second generation” of its hydrogen powered truck.
That project, alongside the electrolyser and membrane supply to HDrive, he says “are part of our initiatives and activities in driving the hydrogen economy in the country and showcasing some of the work that South Africa can do in the hydrogen economy.”
By leading the way in the adoption of cleaner technologies the two miners are setting a new standard for environmental responsibility and operational excellence in the global mining sector.
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