Sustainability and profitability are no longer at odds

Melodie Michel, Reporter, Energy and Mines

Active energy management is one of the fastest ways to begin decarbonizing mining operations. Companies should consider how their business and sustainability goals overlap and map out sustainability risks and rewards, to deliver a strategy that targets tangible outcomes. Schneider Electric works with mining clients all over the world, helping them perform this analysis and leverage technology to achieve their decarbonization goals.

“With the help of modern technology and software, we are able to break down operational silos and find a meeting ground for a viable sustainability strategy, which includes renewable energy, as well as energy efficiency projects and strategic sourcing of materials,” says Jess Maddren, Segment Director, Pacific Region, Mining, at Schneider Electric.

The company recently formed a partnership with Wärtsilä to create the world’s first sustainable, uninterruptible power solution for the most remote lithium mines in the world. The power system includes tailored power supply consulting and design, power infrastructure build, equipment delivery, installation, digital microgrids operation, and commissioning, and is available to mining operators around the world.

“It unifies and leverages microgrids, thermal power generation, energy storage, and other renewable energy sources to provide a highly cost-effective power solution with a minimal environmental footprint for the mining industry,” notes Maddren. Based on pilot projects, typical results include an average overall capex reduction of 27%, CO2 reductions of up to 20% and an energy cost reduction of 40% compared to local off-grid dieselgenerated power.

“The benefits will go well beyond lithium mining,” she adds. “To create a net-zero future, electric vehicles and renewable energy storage must become more affordable and accessible. This solution will enable mining operators to reduce the environmental impact of their sites and reduce the cost of production. It has the potential to power the next generation of technology and ultimately act as the foundation of a net-zero society.”

Tackling climate change in the mining sector means reimagining the way we think and operate. The interaction between process and energy usage is key to improving performance, in terms of both sustainability and profitability.

Maddren points out that for mining and minerals assets, the cost of energy is in the range of 2540% of the cost of production, depending on the size of the hauling fleet and the complexity of the processing plant. “With power and process and decarbonized operations, we’ve seen carbon footprint reductions of 7% to 12% are typical for mid to large-scale plants, along with a further 2% to 5% reduction of energy purchase costs through effective contract strategy and implementation of the overall centralized control and optimization concept,” she notes.

According to her, sustainable operations have the potential to be more profitable than traditional operations, as green premium products command higher prices, and lower interest rates are often available for projects that are fully sustainable, supporting the profit margins of mining operations in the longer run.

She observes that new projects generally already apply the type of sustainability thinking necessary for change, and encourages others to follow: “I see a massive step change in the way mining companies map out greenfield mining operations, with approvals being subject to CO2 emissions and making investment decisions based on value proposition. Today, companies have the possibility to take and claim the ‘green’ position within the industry, not just enabling their social licence to operate and unlocking profitability — but also encouraging more mining companies to think differently. To lead by example.”

While traditionally in mining, electricity management and process automation have been independent from each other, today’s digital transformation is enabling their unification. “The integration of power and process is a catalyst for operational resilience and improved sustainability across the lifecycle of the plant,” Maddren explains.

She notes that the integration of power and process creates a value chain through the integration of five functionalities (energy management, operations management, integrated planning, sustainability and maintenance management) to remove silos. This integrated and digital approach can drive capex reductions and opex efficiencies, improving bottom line profitability by 3 to 5 percentage points. It also allows for the creation of a predictive model connected to the plant or mine to align power, process, and business performance, creating a behavioural model for the life of the asset.

Many miners are investigating solutions for haul truck electrification, but this is an area that still requires innovation. While a 100% renewable tried and tested charging solution for trucks doesn’t exist today, Maddren believes it will be available in five years.

In her mind, the future consists of 100% off-grid modular renewable microgrid charging stations for contactless truck charging — an exciting innovation that is already in proof-ofconcept phase. Thinking outside the box and getting inspiration from adjacent industries is the way to spearhead more groundbreaking innovation, building on the solutions that exist in other segments of the market.

“I believe that 100% renewable energy-powered mining operations are possible today. Working closely with one of our Australian customers, we are looking into ways to utilize spilled energy — the excess energy that is generated but can’t be stored — including through powering haul trucks and better process optimization,” she explains.

Finally, Maddren believes real change will require true partnerships, and those forming in the fleet electrification space bode well for the industry. “The biggest obstacle for miners is if they try to do it all alone. Climate change is too big an issue to tackle for any single company alone,” she says. “In Australia, we are seeing great momentum in the mining sector, with initiatives such as the Electric Mine Consortium proving successful. This is the right way forward, and the beginning of a real industry change.”