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BHP says renewables to take some time

AAP logoAAP 11/10/2016

BHP Billiton expects renewable energy to grow at the higher end of expectations but says non-renewable fuels will remain the lowest cost sources in major energy markets for the foreseeable future.

The resources giant outlined its views in a climate change update, which also included an evaluation of its business portfolio and strategy.

"It is likely to take at least a decade for renewable energy to become competitive with incumbent technologies in the world's three largest energy markets," BHP's vice-president for sustainability and climate change Fiona Wild said in the report.

"Gas, nuclear and coal are likely to remain the lowest cost sources of energy in the US, China and India, respectively, for some time."

The company says it takes climate change seriously, with portfolio analysis an ongoing process and climate change fully integrated into its strategic planning and investment decision making.

BHP had re-tested its business portfolio and strategy in light of climate change action in the past 12 months and determined that its commodities had strong future margins, and the portfolio remained resilient, Ms Wild said.

Earlier in October,, BHP Billiton renewed expansion plans for its petroleum business as a recovery in oil prices and a reduction in costs makes investments in projects more attractive.

The resources giant said underlying fundamentals suggested that both oil and gas markets were improving more quickly than its minerals commodities.

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