Yarnima Power Station

Yarnima Power Station is a electricity generation facility operated by BHP IRON ORE PTY LTD in WA. Like all covered facilities, industrial operations generate significant emissions. Under Australia's Safeguard Mechanism, Yarnima Power Station must keep its annual emissions below a stepping-down baseline — or purchase carbon credits to cover any overage.

In 2023–24, Yarnima Power Station reported emissions of 348 kt against a baseline obligation of 329 kt — an overage of 19 kt. The facility covered the 19 kt overage by purchasing 18,645 Australian Carbon Credit Units (ACCUs) — credits generated by carbon abatement projects elsewhere in Australia such as soil carbon farming, avoided land clearing, and landfill gas capture.

Purchasing credits is legal and intended by the Safeguard Mechanism's design — the policy deliberately allows facilities to choose between cutting on-site emissions or funding abatement elsewhere in the economy. Whether credit purchases represent genuine long-term decarbonisation depends on whether the facility's absolute emissions are trending down over time. The chart above shows the trajectory since reporting began. This question applies to all covered facilities under the Safeguard Mechanism, not Yarnima Power Station specifically.

Across the electricity generation sector, 3 of 6 covered facilities reported emissions above their baseline in 2023–24. The table below compares Yarnima Power Station with other electricity generation facilities covered by the Safeguard Mechanism.