Orica has today taken another step towards achieving its net zero ambition by 2050, by announcing it will source 100 per cent renewable electricity by 2040.
Building on its target to reduce scope 1 and 2 GHG emissions by at least 40 per cent by 2030, Orica’s renewable electricity target will see the business powered by 100 per cent renewable electricity by 2040, with an interim step of 60 per cent by 2030. This commitment signals Orica’s intent to further decarbonise its operations and enhance its competitiveness in a lower carbon economy.
Orica Chief Financial and Sustainability Officer Christopher Davis said, “As part of our purpose to sustainably mobilise the earth’s resources, and our net zero ambition, we are transitioning our operations towards more renewable forms of energy.
“Over the coming years, Orica will pro-actively evolve its approach to energy procurement and secure renewable electricity partnerships to support this transition, prioritising offsite renewable generation projects to spur growth and jobs in the industry.
“As renewable electricity supply, pricing, reliability and networks improve, Orica is now well positioned to confidently transition to higher proportions of renewable power use on commercial terms over the long term.
“Contracting renewable electricity through strategic long term power purchase agreements will allow us to mitigate exposure to volatile electricity markets, while supporting local communities and making a meaningful impact towards achieving our sustainability targets.
"We make this commitment to sourcing renewable electricity knowing the global economy continues to be in transition, and that many communities around the world still require access to affordable and reliable energy.”
Fundamental to achieving its renewable electricity target, Orica will continue to deploy onsite renewable infrastructure across its sites and offices globally, while partnering on new build renewable energy projects to amplify its contribution to sustainable global economic development.
Lightsource bp, Wellington North Renewable Electricity Power Purchase Agreement
To accelerate its journey towards 100 per cent renewable electricity, Orica has entered into a Power Purchase Agreement (PPA) with Lightsource bp for renewable electricity generated by its Wellington North solar farm.
Lightsource bp, a global leader in the development of solar energy projects, will use Orica’s PPA to underpin its Wellington North solar farm – an extension of its pre-existing Wellington solar farm, making it the largest solar developer and owner in Australia.
Located approximately 50 kilometres south-east of Dubbo, New South Wales, the Wellington North solar farm will generate a total of 915GWh of renewable electricity per year, saving over 730,000 metric tonnes of carbon emissions. This extension is expected to create over 400 jobs during construction and eight full time equivalent roles once fully operational in 2025.
As part of the PPA, the Wellington North solar farm will supply around 50 per cent of Orica’s Australian electricity needs, reducing Orica’s global Scope 2 emissions by over 60,000 metric tonnes of carbon emissions annually, which is the equivalent of powering 19,000 NSW residences every year . Globally, Orica’s proportion of electricity sourced from renewables will be around 30 per cent once Wellington North is fully operational.
Managing Director, Lightsource bp Australia and New Zealand Adam Pegg said, “Australia needs more clean, low-cost energy in the power system to drive down costs for consumers, meet rising demand, combat climate change, and improve energy independence. Fortunately, the current outlook for solar in Australia and the region is incredibly strong, with increasing political support, greater investor certainty, and capital looking to participate in the sector.
“In just four years our business has grown rapidly in Australia and the region. This growth has been enabled by the strong support from our customers, lenders, partners, and the local communities in which we operate, and we are extremely grateful for the support from Orica and are proud to be front and centre in the clean energy transition in Australia.”
To find out more about Orica’s recent actions towards climate change, visit orica.com/sustainability.