Mining giant BHP says it is on track to reduce emissions across the business by at least 30 per cent this decade but warns progress beyond that won't go in a straight line.
Early action, including offloading the petroleum business to Woodside Energy, means the global company has already reduced the size of its carbon footprint.
Graham Winkelman, BHP's head of carbon management, sustainability and climate change, told an investor briefing that "good progress" has been made versus competitors.
Getting to net zero greenhouse gas emissions by 2050 will be "neither linear nor easy, but it's achievable," he said on Wednesday.
Mr Winkelman said demand for copper, nickel and steel needed for electrification, batteries and wind turbines will require more mining.
BHP said it remains ahead of the net zero trajectory until around 2035 to 2040, but will be reliant on the availability of technology that is still under development.
"We can anticipate the need for some carbon credits to deliver on our net zero goal," he said.
"And of course, we may be required to source and relinquish carbon credits in coming years to make compliance obligations, including under Australia's safeguard mechanism."
Mr Winkelman said BHP was not planning to change its interim 2030 target but the path has become more challenging because the emissions profile is now weighted towards diesel.
Haul trucks are the largest user of diesel in Australia and BHP's preferred long-term option is to switch to an electric fleet.
Vice-president Anna Wiley said some of the biggest technical challenges BHP needs to solve in Australia include ambitious plans for diesel elimination and reducing gas use by operations in the Pilbara region.
She said electrification of the diesel truck fleet is expected to be difficult, but better than opting for hydrogen.
Lack of transmission infrastructure in remote areas means BHP faces possible constraints to mining without costly charging hubs for trucks.
"However, our view is that an electrified mining fleet is more economic achievable than the alternative fuel sources," Ms Wiley said.
"One of the things we do know for certain about the transformation is that we are going to need a lot more power."
Power purchase agreements have BHP on the way to reducing emissions by at least half by 2025, and the aim is to eliminate them entirely by 2030.
Inland Pilbara sites are not connected to an electricity grid, with power supplied by the 190 megawatt Yarnima gas-fired power station, which BHP said emits more than a third less carbon than the Australian average.
BHP is planning for up to 500MW additional renewable generation and storage capacity by 2030, but Yarnima will be required to provide power when wind and solar are at a low ebb.
The company is also exploring options for interconnection to the electricity grid in the future, she said.
