Evaluating Renewable Energy Options for Global Mining Sites. Competence Center for Mining & Mineral Resources. Scott Fraser Director Power Projects

Transcription

1 1 Evaluating Renewable Energy Options for Global Mining Sites Competence Center for Mining & Mineral Resources Scott Fraser Director Power Projects

2 Presentation Agenda My Background In Renewable Energy Barrick Gold s Use of Renewable Energy Existing Applications Under Evaluation For the Future Key Factors to Consider Lessons Learned and Challenges Financial and Non Financial Factors Page 2 2

3 3 My Background In Renewable Energy Over Thirty Years with Utilities, IPP Projects, Energy Consulting and Technology Development Two Decades ago Renewable Focus was on the Combustion of Biomass/Waste fuels, Small Hydro (including tidal) and the Emerging Wind Industry

4 4 Liquids From Renewables Focus of this Meeting is on Renewable Electricity and Thermal Energy Renewable Liquid Fuels Are Also A Major Renewable Energy Source Ethanol Methanol Bio-diesel Future Algae (CO2 Capture) Hydrogen from Solar Renewable Desalination

5 5 Policy Support For Renewables Numerous Subsidies and Credits Feed In Tariffs Rate Base Supported Accelerated Depreciation Minimum Renewable Energy Requirements

6 Barrick Gold Renewable Energy 6

7 7 Why Renewable Energy at Barrick Originally The Focus Was Sustainable Development and Reduced GHG Emissions Projects With Lower Grade Ores - Added Crushing/Grinding Resulted In Higher Loads Reduced Use of Diesel at Sites Offers Cost Savings With Renewables Reduced Diesel Transport Risk Reduced Exposure to Oil Price Volatility Reportable GHG Reduction Renewables While Variable are More Reliable Than Many Utility Grids In Developing Areas

8 Veladero Wind Turbine 4110 meters 8

9 Barrick Gold Punta Colorada 9

10 10 Details of Punta Colorado Site Intended For Construction and Ramp-up Power at Pascua Lama Project Original 10-2 MW Wind Turbines Development Support from Seawind Now Rame Energy Permitted For 9 more - Under Evaluation 17 MW high Efficiency Oil Fired Back-up Access to The Chilean Grid SIC Region Surplus Sales and Spot Market Purchases Additional Adjacent Barrick Land Biomass to Liquids Opportunities/Solar

11 11 Under Evaluation at Barrick Expansion of Punta Colorada Wind Farm Jatropha Farms For Bio-Diesel and Char Geothermal Opportunties In Argentina/Chile Additional Large Scale PV Solar In Chile Solar Thermal for Copper Processing Reviewed Use of Brown Field Mines For Renewables Small Scale Hydro Generation Pressure Recovery in Water Supply Pipelines Regenerative Braking Downhill Conveyer

12 Geothermal South America 12

13 Pumped Storage Marmora Example 13

14 6 MW Hydro Turbine Pressure Recovery 14

15 Key Factors to Consider Life of Mine Considerations Once Operational Electrical Demand Is 24-7 Energy Reliability Is Important to Profitability Mines Have a Finite Life 10 to 50 years Development Phase Very Long 10+ Years Energy Cost Is Increasing With Lower Ore Grades Variability of Renewable Energy Supply Responsive Back-up Supply Is Required Seasonal Variations Must Be Addressed Location is a Major Consideration Storage Technologies Remain a Challenge 15

16 16 Lessons Learned and Challenges Remoteness of Sites Difficult for OEM s to Respond Quickly Data Monitoring Over Web is More Complex Higher Installation Costs Training and Staff Development Should Not Apply First of Type or Last Limited Attention to Non-Core Assets Reliability Suffers was 60% now 90+% Equipment Damage Increased Service Costs Genset Fuel Usage Due to Load Following

17 Post Commisioning Follow-up 17

18 Financial and Non Financial Factors 18 Difficult to Match Renewable Project Life to Mine Life Renewable Energy Technology Evolving Rapidly vs Years to Develop a Mine Installations at Operating Mines Have Reduced Project Life - Short Payback Period Application of Renewable Energy Credits less Certain than For Utility Projects Valuation of Future GHG Credits Risky Prediction of Future Savings Dependent of Oil Price Forecasts

19 19 Financial and Non Financial Factors Government Policies Re Local Content May Improve Project Acceptability Lack of Competition Can Increase Costs Developing Country Investments In Power Sector are Generally Underfunded Inadequate Supply or Reliability Uncertain Future Price Mining Economic Cycle (Boom & Bust) Risk of Mine Close Without Alternate Customer for Entire year Life Mines Now Prefer Off-Balance Financing