Chemicals and explosives group Orica has stepped up its commitment to achieving net zero emissions by 2050 by announcing new interim reduction targets.
The company announced it will source 100 per cent renewable electricity by 2040, with an interim step of 60 per cent by 2030.
Orica has a target to reduce scope 1 and 2 GHG emissions by at least 40 per cent by 2030, with its new commitment signaling Orica’s intent to further decarbonise its operations, according to Orica Chief Financial and Sustainability Officer Christopher Davis.
Orica has entered into a Power Purchase Agreement (PPA) with Lightsource bp for renewable electricity generated by its Wellington North solar farm (pictured).
Lightsource bp 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.
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.
Globally, Orica’s proportion of electricity sourced from renewables will be around 30 per cent once Wellington North is fully operational.
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.”
The company plans to source renewable electricity through strategic long term power purchase agreements, allowing it to mitigate exposure to volatile electricity markets.
“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.”
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