Next Big Leap for Renewables in Mining: Affordable, Long-Term Storage

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1 Next Big Leap for Renewables in Mining: Affordable, Long-Term Storage

2 Next Big Leap for Renewables in Mining: Affordable, Long-Term Storage BY ANNA GOLUBOVA Energy storage is the panacea for renewables to displace diesel fuel for the mining industry, experts say. Storage solutions are dramatically changing the resource sector s energy landscape by allowing solar and wind to offer a continuous 24/7 energy supply to remote mines. Currently, mines are implementing storage technologies either in combination with renewables to solve intermittency issues or with diesel generators to save on fuel costs. Off-grid mines, which usually have at least 30% of their production coming from diesel, have been the first to embrace these technologies, states Richard Boudreault, Executive Chairman at Sigma Energy. Economical and ecological energy storage is critical for mines that are off-grid and are integrating intermittent power use into their production, Boudreault notes. Operational examples of storage for mines demonstrate that the technology can function in different, extreme environments from the cold Canadian Arctic to the arid Australian Outback. Specifically, Glencore s Raglan mine has successfully integrated 0.65 MW of energy storage with its 3 MW wind project in Northern Quebec and, in Western Australia, the DeGrussa copper-gold mine, owned by Sandfire Resources, has included 6 MW of storage with its 10.6 MW solar farm. The cost-saving benefits for mines are very clear and can vary between 20% to 70% in the form of fuel reduction, reports Bill Sproull, Vice President of Business Development & Sales at ESS. For instance, if storage is integrated with a diesel-powered microgrid, mining companies can see a 20 to 30 percent drop in fuel usage through a more efficient operation of the generators, Sproull explains. If miners then integrate storage with renewables, up to 70 percent of fuel can be saved. Storage also provides backup power when diesel generators need to be taken down for maintenance, he adds. Sigma Energy s Boudreault offers similar estimates, adding that when fuel savings are fully taken into account, a mine could be 25% more profitable if it uses a system that combines both energy storage and renewables. Setting the bar Glencore s Raglan nickel mine in Nunavik, Canada introduced wind and storage to provide more flexibility in terms power consumption, says the mine s Director of Capital Projects and Exploration, Jean-François Verret. Diesel prices are always volatile and diesel generators produce lots of GHG emissions, he reports. Raglan s wind turbine combined with storage is a way to be greener and more robust through the economical cycle. DeGrussa Mine 1

3 Next Big Leap for Renewables in Mining: Affordable, Long-Term Storage Prior to the installation, the mine was completely reliant on diesel, making power costs the second largest cost for the mine, according to Verret. Now, wind and energy storage help Raglan lower its energy costs and resolve power issues. During periods of high wind, power surpluses produce hydrogen which is then stored in compressed gas tanks and used only when the mine needs additional energy. Coober Pedy Verret says the construction process was challenging given the extreme weather conditions, short construction window and complex logistics. We are in a remote location, in the middle of the Arctic desert, which can only be accessed via ship or airplane, he describes. The mine has realized impressive fuel savings of 4.6 million liters of diesel and 12,600 tons of greenhouse gas (GHG) emissions since the project went into operation in Glencore also estimates it will save over $40 million in fuel costs over the next 20 years. Sandfire Resources pv-storage hybrid is also delivering significant power savings for its DeGrussa operation in Western Australia. According to Mike Spreadborough, COO of Sandfire Resources, the system already saves the mine 30% in fuel costs with increased savings expected. The Raglan and DeGrussa hybrids are milestone projects and both were recently highlighted in Energy and Mines first-ever global rankings of renewables integration by mines. These projects are also shortlisted for the award for Best use of energy storage in mining at the upcoming Energy and Mines Renewables in Mining Awards on November 21st in Toronto which will celebrate global mining operators that have invested in renewables and storage. Both projects will also be featured as case studies at the 4th annual Energy and Economical and ecological energy storage is critical for mines that are off-grid and are integrating intermittent power use into their production. RICHARD BOUDREAULT Executive Chairman SIGMA ENERGY 2

4 Next Big Leap for Renewables in Mining: Affordable, Long-Term Storage Mines World Congress on November 21-22, co-located with the awards. Next steps in storage for mines Experts predict more uptake of storage for mines in the near-term as the economics and logistics improve. Miners are trying to move to renewables and away from diesel, says ESS Sproull. Energy storage will probably be prevalent in most mining operations within the next five years as the economic and environmental benefits are more fully documented and validated. The resource sector needs to find a way to be greener, agrees Glencore s Verret. And it is the role of miners to advertise renewables by including them in their business plans and making them a top priority. Affordability of storage technologies is key, Verret adds. Manufacturers need to continue to update alternative technologies to bring low-cost solutions to mining consumers, he says. Sproull agrees that cost will be a major driver in terms of how fast energy storage is adopted. Cost factors include capital costs, the operations and maintenance, and the operating lifetime of an energy storage device, Sproull adds. Further progress will also depend on improvements in long-term storage solutions, stresses Sproull. Great steps have already been made, including flow batteries with capacities up to 8-hours and a lifetime of at least 25-years that can operate in very hot environments, Sproull suggests. Storage systems are also able now to provide a greater amount of energy and are easily transportable via aircraft to far-out locations, adds Boudreault. A new project in Australia points to the significant possibilities storage can offer remote mines going Raglan Mine Diesel prices are always volatile and diesel generators produce lots of GHG emissions. Raglan s wind turbine combined with storage is a way to be greener and more robust through the economical cycle. JEAN-FRANÇOIS VERRET Director of Capital Projects and Exploration, Raglan Mine GLENCORE 3

5 Next Big Leap for Renewables in Mining: Affordable, Long-Term Storage Miners are trying to move to renewables and away from diesel. Energy storage will probably be prevalent in most mining operations within the next five years as the economic and environmental benefits are more fully documented and validated. BILL SPROULL Vice President of Business Development & Sales ESS forward. The diesel-reliant South Australian town of Coober Pedy is implementing a hybrid system that includes 4 MW wind, 1 MW solar, and a 1 MW/250 kwh battery. The Australian Renewable Energy Agency (ARENA) is providing up to AUD$18.4 million in funding to switch Coober Pedy from 100% diesel to 70% renewable power. The function of storage at the Coober Pedy mine will be to gather up curtailed wind energy and provide it to the community s load the next day, explains Sproull. In the grand scheme of things, it is about reducing the use of diesel generators even further and also extending the value of the wind and solar. Renewables in Mining Awards Celebrate the climate leadership of global mining companies at the Energy and Mines Renewables in Mining Awards Hilton, Toronto, November 21st. For full details of the awards, rankings and spectacular event: andrew.slavin@energyandmines.com 4

6 Where mining meets renewables to address key energy challenges 60+ speakers Key mine energy-decision makers 4th annual networking event Energy and Mines Renewables in Mining Awards Hear from leading mining and energy experts including: