Rising share of renewable power driving miners towards near-term emissions targets

As well as reductions in emissions due to the shift to renewables, diesel displacement will play a significant part in emissions reductions.

Leading mining companies are continuing to make progress in developing their operational decarbonisation pathways, with time periods for achieving net-zero shortening in some cases, as well as more ambitious near-term targets. Several miners, including BHP, Vale and Anglo American, have made progress towards their goals and achieved a reduction in Scope 1 and 2 emissions in recent years, while many of those whose emissions grew due to greater operational activity post-Covid-19-related interruptions in 2021 have still succeeded in reducing their greenhouse gas intensity.

The achievement of short-term targets, where miners are typically aiming for around a 30% reduction in Scope 1 and 2 emissions by 2030, is principally being supported by renewable energy, either directly via on-site power plants or through power purchase agreements (PPAs).

Many miners already benefit from high proportions of their grid-sourced power coming from renewable generation such as in Brazil, which helps Brazilian iron ore giant Vale to source almost 90% of its power from renewables. Likewise, in Chile, Antofagasta has renegotiated its PPAs in order to switch from conventional to renewable energy sources – its share of power from renewables reached 100% in 2022, up from the 40% shown in the chart for 2021. Polyus also sources all its power from renewables, having achieved this in 2021, which it achieved through signing a large-scale PPA with a Russian hydropower producer.

Learn more: Power Technology