bhp plans big c02 reduction fund

Geothermal one area of interest...

http://www.news.com.au/heraldsun/story/0,21985,21722836-664,00.html

BHP plans a greener tomorrow

Mandi Zonneveldt
May 14, 2007 12:00am

BHP Billiton is preparing to launch a green research fund expected to be worth hundreds of millions of dollars as part of a new policy on climate change.

The company is also stepping up its work on energy efficiency, implementing a new program across its Australian sites to cut fuel costs and bring down carbon emissions.

The move comes as the government prepares to launch a national carbon trading scheme linked to the Australian Securities Exchange.

The new trading regime, expected to be announced within weeks, could add hundreds of million to the running costs of carbon-intensive operations like mines.

BHP's carbon steel materials boss Chris Lynch - a front-runner to replace chief executive Chip Goodyear - is spearheading the "energy excellence" program.

The company has appointed a full-time co-ordinator to manage the program, with about 30 "energy excellence champions" leading the charge at sites across Australia.

"This is a very significant challenge for the globe going forward and we want to play our part," Mr Lynch told a seminar in Melbourne last week.

Mr Lynch sits on the Prime Minister's emissions trading task group, which is due to hand down its final report at the end of this month.

While BHP's green push is not believed to be directly linked to the prospect of carbon trading, the company supports the development of a national emissions trading system and is believed to have looked at the benefits its new programs might deliver under such a regime.

BHP already audits 48 sites with emissions greater than 100,000 tonnes a year of CO2 equivalent, which combined account for 98 per cent of the group's greenhouse gas emissions.

The company's internal greenhouse gas intensity index increased 3 per cent in 2005-06, according to its most recent sustainability report.

The new push to cut energy consumption could save the company millions of dollars when carbon trading is introduced, as well as reducing its $US2.3 billion annual fuel bill.

"There's obviously fertile ground there for (greenhouse gas) reductions, but also cost savings for ourselves," Mr Lynch said of the energy excellence program.

BHP's green research fund is expected to be launched next month when the company releases its new policy on climate change.

It is believed the majority of money will be spent on clean coal initiatives, but the company could also look at new technologies such as geothermal power. It is unlikely to look at renewables such as wind and solar power.

BHP is not believed to view its new research program as a way to offset emissions under a carbon trading scheme, but other companies are hoping they will get credit for their work into reducing CO2.