Insights

Own BHP (ASX:BHP) shares? Here’s why the iron ore giant is pushing for battery-powered trains

Here’s BHP’s latest clean energy news.
The post Own BHP (ASX:BHP) shares? Here’s why the iron ore giant is pushing for battery-powered trains appeared first on The Motley Fool Australia. –

Key points

BHP has announced its plan to trial battery-electric locomotives in its Western Australian iron ore operations
Swapping all the company’s trains to battery-powered counterparts could reduce its Western Australian iron ore operation’s diesel-related emissions by 30%
Right now, the BHP share price is $46.63

If you own BHP Group Ltd (ASX: BHP) shares, you might be excited to learn that the company is continuing its push to drop its emissions. In its latest scheme, it’s looking into utilising battery-powered trains.

The iron ore giant – which could soon become the largest company on the ASX – has announced its intent to trial electric locomotives in Western Australia’s Pilbara region.

At the time of writing, the BHP share price is $46.63, 1.04% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently up 0.16%.

Let’s take a closer look at the futuristic trials the company plans to undertake.

BHP pushes towards battery-powered haulage trains

Owners of BHP shares, rejoice! The company has boarded the electric train, or at least, it’s planning to.

The iron ore giant has announced it will purchase 4 battery-electric locomotives. They are expected to be delivered in late 2023.

BHP will test the trains’ performance and emissions reduction capabilities in delivering iron ore from its Pilbara mines to the Port Hedland export facility.

To put the mammoth task into perspective, a full BHP iron ore train in Western Australia is typically made up of 4 diesel-electric locomotives pulling around 270 cars weighed down with 38,000 tonnes of iron ore.  

By swapping its 180-locomotive strong iron ore fleet to electric trains, the company could reduce its Western Australian iron ore operations’ diesel-related emissions by around 30% annually.

Two of the locomotives will come from Progress Rail – A Caterpillar Inc (NYSE: CAT) company and BHP’s current provider.

The other two will come from Wabtec ­(NYSE: WAB) – creator of the world’s first 100% battery-electric heavy-haul locomotive.

BHP procurement officer, James Agar commented on the planned trials, saying:

By working with two global leaders in Progress Rail and Wabtec, we can broaden the scope of our trials and be better informed as we prepare for the planned replacement of our diesel-powered iron ore rail fleet. This is a good first step with significant potential.

The trials will also test to see if the trains can pick up energy on downhill slopes. They may be able to store that energy to power empty trains on their way back to mines.

If BHP’s plan sounds familiar, it might be because Rio Tinto Limited (ASX: RIO) announced a similar proposal earlier this month.

BHP share price snapshot

2022 has so far been brilliant for the BHP share price.

The iron ore giant’s stock is up 10% year to date. Though, it’s only 2% higher than it was this time last year.

The post Own BHP (ASX:BHP) shares? Here’s why the iron ore giant is pushing for battery-powered trains appeared first on The Motley Fool Australia.

Should you invest $1,000 in BHP right now?

Before you consider BHP, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and BHP wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

More reading

Leading fund manager says these blue-chip ASX shares are buys right now

2 buy-rated ASX dividend shares

These are the 10 most shorted ASX shares

Is the iron ore price set to slide?

Does the BHP London share price perform the same as the company’s ASX:BHP listing?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US & HK* Trades. Click Here!