BHP spends over $500 million on diesel trucks despite climate pledges

Despite public pledges to phase out diesel, BHP is doubling down on fossil-fuel haulage in Western Australia's Pilbara region. The Pilbara accounts for the bulk of the company's diesel use, and its haul trucks are the single largest source of those emissions.

Internal reviews from 2022 showed a plan to refurbish the existing Jimblebar fleet, extending its life by about eight years to line up with a hoped-for electric rollout in the early 2030s. That approach would have kept diesel trucks in service just long enough to replace them with battery-electric units when the technology matured.

A 2023 cost analysis, however, found a material reduction in the price of new diesel trucks, prompting a shift in strategy. BHP then authorised the purchase of 62 haul trucks for Jimblebar at a cost exceeding $500 million.

The purchase price exceeds $500 million for the 62 trucks. In FY2025 the company used 1.23 billion litres of diesel and claimed $622 million in federal fuel-tax credits. BHP has said battery-electric truck technology is not yet advanced enough to support an operational fleet.

By committing to new diesel assets, BHP pushes the likely date for a zero-emission haulage fleet toward the late 2030s. This timing conflicts with its public goal to fully displace diesel by 2040 and raises questions about the alignment of its capital spending with its climate transition plan. Shareholders endorsed the 2024 climate plan, but the recent truck purchase suggests a divergence between stated ambitions and actual investment.

Investors will monitor the outcome of BHP's ongoing trials of two 240-ton battery-electric haul trucks and four locomotives in the Pilbara to see if those tests lead to broader fleet conversion or if further diesel purchases continue.