BHP Group Limited (NYSE:BHP) shares are trading higher on premarket Thursday. The company reported that it is the first customer to test Caterpillar, Inc's (NYSE:CAT) technology, which is aimed at improving the energy efficiency and sustainability of large mining trucks.
The trial will take place at BHP sites, supporting the company's efforts to enhance operational efficiency in its mining operations.
Earlier this week, Caterpillar launched its Cat Dynamic Energy Transfer (DET) solution at MINExpo, showcasing technology capable of transferring energy to both diesel-electric and battery-electric mining trucks while in operation.
The DET system can charge electric haul truck batteries as the trucks move, offering flexibility by being easier to relocate than traditional fixed overhead trolleys used for similar purposes.
In 2021, BHP announced a collaboration with Caterpillar to deploy zero-exhaust emissions mining trucks at BHP's sites as part of its commitment to reducing operational greenhouse gas (GHG) emissions.
This partnership has provided valuable hands-on learning opportunities to ensure the successful deployment of these technologies at BHP locations.
Through the collaboration, both companies have worked together to shape the necessary processes, technology, and infrastructure to support the integration of diesel-electric and battery-electric mining trucks, paving the way for more sustainable mine sites in the future.
BHP's Chief Commercial Officer, Ragnar Udd, said, "Innovation and technology will play a crucial role as we work towards BHP's goal of net zero operational emissions by 2050, and we are determined to keep building Partnerships like this to achieve this objective."
Denise Johnson, Caterpillar Group President, stated, "BHP has been part of our Early Learner program from the beginning, providing valuable feedback. We look forward to continuing that collaboration as we work together to trial the Cat DET system on both diesel electric and battery electric trucks at BHP's sites."
"This is an important next step to validate the crucial energy management solutions needed to support not only BHP and Caterpillar, but also the broader mining industry."
Also Read: South Australia Begins Review Of BHP's Major Copper Expansion
Investors can gain exposure to the stock through the Exchange Traded Concepts Trust Optica Rare Earths & Critical Materials ETF (NYSE:CRIT) and Exchange Traded Concepts Trust Range Global Coal Index ETF (NYSE:COAL).
Price Action: BHP shares are up 4.30% at $60.21 premarket at the last check Thursday.
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