PILBARA — Former BHP chief economist Dr. Huw McKay called for a carbon price to accelerate decarbonization in heavy industry after internal documents revealed delays in major renewable energy projects in the Pilbara. Dr. McKay, who left BHP in 2024, is scheduled to address an Australian National University seminar this month on "Heavy industry decarbonisation: insights from the BHP leaks."

Internal documents leaked earlier this year showed BHP delayed vast renewables projects in the Pilbara. The documents indicated the company scrapped a project that would have delivered cuts to global emissions and considered options to delay the electrification of its diesel truck and train fleets into the next two decades. Specifically, BHP shelved a 50MW solar farm and 20MW battery at its Jimblebar mine after the board had approved and funded it. The company also significantly delayed another 500MW system of solar, wind, and battery in the Pilbara and acquired 62 diesel haulage trucks.

Discussing the findings, Dr. McKay stated, "The preferred policy is, of course, a carbon price that is calibrated to move the needle on hard-to-abate emissions." He added, "Inserting a carbon-price obligation like that into the investment process at major resources companies would lead to swifter action."

BHP has set a target of cutting emissions to 30% below 2020 levels by 2030. The company achieved this target using power purchasing agreements, particularly in Chile, and in part through the 2024 suspension of its Western Australian nickel operations.

In a separate development, BHP held an event with Rio Tinto and Caterpillar at the Jimblebar mine site to promote a trial of two battery-electric trucks in the Pilbara. Western Australian Premier Roger Cook attended the event. A BHP spokesperson stated, "Trials were needed because technology was not advanced enough to scale 240-ton battery-electric haul trucks to an operational fleet."