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BHP Group BHP has announced that it plans to trial Caterpillar Inc.’s CAT recently launched Cat Dynamic Energy Transfer (DET) at its mining site. Caterpillar’s cutting-edge solution is engineered to transfer energy to large mining trucks (both diesel-electric and battery-electric) while they operate on site.

The trials are the result of more than two years of collaboration between BHP and Caterpillar to find sustainable and viable energy transfer solutions. The trials include validating the solution in BHP’s Iron ore and Copper businesses, including the CAT 793 fleet at Jimblebar and the CAT 798 fleet at Escondida. BHP also intends to trial Cat DET as an integrated system with Cat autonomous solutions.

CAT’s Solution Offer Benefits to BHP & Other Miners

The Cat DET system has several key components, which include a power module that converts energy from the mine’s power source and an electrified rail system to transmit this energy. It has a machine system to transfer the energy to the truck's powertrain.

One of the most noteworthy aspects of the system is its highly mobile and flexible rail system. It can be tailored according to a mine’s layout, ensuring higher productivity. The connecting arm can be mounted on either side of the truck and is compatible with various truck models, thereby making it adaptable to different operational setups. It can be deployed at both mature and developing mine sites, allowing options for expansion to ensure complete coverage of the site.

The system will address the persistent challenge of energy management for BHP and other miners while also lowering operating costs, improving machine efficiency and cutting down greenhouse gas emissions.

BHP’s Efforts to Achieve Net Zero by 2050

BHP targets to reduce operational greenhouse gas emissions by at least 30% by fiscal 2030 from the fiscal 2020 baseline. It expects to attain net zero operational greenhouse gas (GHG) emissions by 2050.

In fiscal 2024, the company reported a 32% reduction in Scope 1 and 2 emissions compared with the fiscal 2020 baseline. BHP estimates up to $4 billion in spending and commitments to execute its operational decarbonization plans.

The company's major source of operational GHG emissions is diesel. To replace diesel, BHP has been working with Caterpillar and Komatsu KMTUY since 2021 to support the development of battery-electric trucks.

In May 2024, BHP and Rio Tinto RIO agreed to trial large battery-powered haul trucks manufactured by Caterpillar and Komatsu in the Pilbara region of Western Australia. BHP will trial the Caterpillar trucks while Rio Tinto will test the Komatsu trucks.

Two Cat 793 haul trucks are under trial by BHP this year, followed by the trials of two Komatsu 930 haul trucks in 2026.

BHP Stock’s Price Performance & Zacks Rank

BHP’s shares have gained 9.4% in a year compared with the industry’s 6.9% growth.

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BHP Group currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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