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Roadmap to Net-Zero Mining What Does Net-Zero Power for Mines Look Like? Hybrid Power Optimisation for Higher Renewable Penetration No Aspect of a Mine Will Remain Untouched
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October
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Roadmap to netMELODIE MICHEL REPORTER Energy and Mines
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t the start of October 2021, the International Council on Mining and Metals (ICMM) announced a pledge by its 28 members to achieve net-zero scope 1 and 2 emissions by 2050. In an open letter, the ICMM explained that while several members already have their own individual targets, the collective effort has the potential to generate a greater ripple effect. “In doing so, we hope to encourage our suppliers and customers to
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-zero mining join us in decarbonising our value chains while we support the decarbonisation of the value chains of others,” the letter said. This is the latest in an ongoing series of net-zero target announcements coming from the mining sector. Most, including BHP, Vale and Rio Tinto, have committed to achieving carbon neutrality for scope 1 and 2 emissions by 2050. Others, more ambitious, have set the same target for 2040 (such as Anglo American) or even as early as 2030 (Fortescue Metals Group). And today, net-zero targets have expanded beyond the realm of giant mining conglomerates. Earlier this year, Kinross Gold joined the 2050 net-zero group, and according to Sunil Kumar, the company’s Vice-President of Energy Strategy and Engineering, an interim 2030 target should be announced shortly. “The big long-term goal is 2050, and we’ve been evaluating where we are in terms of our operations, our estimated emission profiles, based on what we think the
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“The big long-term goal is 2050, and we’ve been evaluating where we are in terms of our operations, our estimated emission profiles, based on what we think the future operations will be.”
SUNIL KUMAR VICE-PRESIDENT ENERGY STRATEGY AND ENGINEERING
future operations will be. Now we’re starting to layer in different technologies, different options for energy and procurement of renewables, to understand what we can do, and what it would take to get there. That work is then going to underlie the plans that we come up with for our medium-term commitment to the year 2030,” he says. WHAT TARGETS REALLY ENTAIL For all miners, reaching net-zero will mean decarbonising their sources of power and material movement first. Wood MacKenzie research shows that, depending on the commodity, total mine site emissions that come from power can be anywhere from 48% to 84% of total mine site emissions. Benjamin Attia, Senior Research Analyst, Energy Transition Practice at the firm, notes: “Disproportionate amounts of decarbonisation could be achieved from decarbonising power and transport; that alone is a significant step of progress towards net-zero mining.” While 30 years may seem like a long time, achieving 2050 targets will require making fast investment decisions. And that means integrating greenhouse gas (GHG) emissions reduction in everyday business planning. “The commitment is coming from our CEO, and we’re talking about climate change in business planning meetings with each of our sites,” adds Kumar. “And as each of the sites looks at their business plans over the next few years, they’re also looking at the GHG emissions profile, and what are the things that can be done to reduce it.” For instance, Kinross purchased two hydroelectric plants to supply its Brazilian operations a few years back, is sourcing renewable power through a PPA in Chile, and finishing a feasibility study for a solar plant and battery in West Africa. One of the mechanisms miners are using to ensure
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decarbonisation is embedded in business decisions is a shadow carbon price. Freeport McMoran, for instance, has established an internal carbon shadow price range between US$50-US$150 per metric tonne of CO2 equivalent. “We have identified four main levers in our pathway to 2050: decarbonising our electricity supply, energy and asset efficiency, electrification, and process innovation,” explains Andrea Vaccari, Director of Responsible Production Frameworks and Sustainability at the firm. And to avoid any future accountability issues, miners should always ensure their targets are science-based and in line with the Paris Agreement to limit temperature rise to 1.5°C. For Freeport, this means submitting targets to the Science-Based Target Initiative (SBTi) for validation. “Validating our GHG emissions reduction targets against the SBTi criteria is critical to understanding if our targets adequately support the Paris Agreement’s goal of limiting global warming well below 2°C. The SBTi validation process also will provide us with an independent third-party review of our plans, which will play a part in our own decision-making as we seek to take action — and to make commitments — that advance our climate strategy,” the company says in its 2020 Climate Report.
We have identified four main levers in our pathway to 2050: decarbonising our electricity supply, energy and asset efficiency,
INVESTING IN THE FUTURE Of course, one of the challenges in setting a net-zero target is that many of the technologies that will be instrumental to a lowcarbon world are yet to be commercialized. “There’s a lot of new technology out there, a lot of new concepts, new innovation. So the challenge is taking that innovation and looking at what’s going to be available to help us achieve our long-term targets, and you have to take some risks and make some assumptions,” says Andrew Cooper, Energy Specialist at New Gold. For underground sites like New Afton, where Cooper works primarily,
ANDREA VACCARI DIRECTOR OF RESPONSIBLE PRODUCTION FRAMEWORKS AND SUSTAINABILITY
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electrification, and process innovation”
FREEPORT MCMORAN
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“There’s a lot of new technology out there, a lot of new concepts, new innovation. So the challenge is taking that innovation and looking at what’s going to be available to help us achieve our longterm targets, and you have to take some risks and make some assumptions”
ANDREW COOPER ENERGY SPECIALIST NEW GOLD
electrification technology is more mature than for open-pit mines. New Afton is looking to replace its underground diesel production equipment with battery-electric vehicles by 2030, anticipating a GHG reduction of at least 25% as a result. For mines that operate on the surface, things can be more complicated. Technologies like battery-electric vehicles and hydrogen are being developed for heavy haulage, and mining majors have teamed up with OEMs with initiatives such as BHP’s Charge On Challenge to accelerate the process, but commercialization remains elusive. “Mine hauling is a big energy use for us. And the technology for things such as large-scale hydrogen or open-pit electrical mining
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“I want to go buy a large-scale haul truck trucks, it’s starting to happen, but it’s at a developmental, not fully commercialized stage yet. So it just becomes hard to make commitments to those today because the technology is still under development. If you say: ‘I want to go buy a large-scale haul truck and fuel system that’s 100% hydrogen’, the availability of that is extremely limited if you’re looking to buy something off the shelf today,” notes Kumar at Kinross Gold. For now, miners are testing vehicles and preparing for their future implementation. Freeport is trialing two different models of diesel-electric 400-tonne haul trucks that provide the foundation for enabling future electrification. “They are the ultra-class platform trucks that Caterpillar and Komatsu are currently offering that would enable us the flexibility we need ENERGY AND MINES MAGAZINE
and fuel system that’s 100% hydrogen’, the availability of that is extremely limited if you’re looking to buy something off the shelf today”
SUNIL KUMAR VICE-PRESIDENT ENERGY STRATEGY AND ENGINEERING
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“It’s the era of collaboration, solving problems together, our biggest challenge – haulage – cannot be solved in isolation”
ANDREA VACCARI DIRECTOR OF RESPONSIBLE PRODUCTION FRAMEWORKS AND SUSTAINABILITY FREEPORT MCMORAN
for the transition,” says Vaccari. In addition, the company has joined the Charge On Innovation Challenge and two hydrogen collaborations. “It’s the era of collaboration, solving problems together, our biggest challenge – haulage – cannot be solved in isolation,” she adds. And of course, fleet electrification will require new skills for miners, though they might not have to come from outside the organization. “A great example is the cross trades we are doing between electricians and mechanics, so a mechanic can learn electrical skills and know the mechanical components of a battery electric loader, etc. We need to develop those skills for when we have electric mobile equipment,” says Cooper. EXPANDING SCOPE(S) While most miners are currently focusing their efforts on cutting their scope 1 and 2 emissions, a true net-zero world will also entail tackling scope 3, the emissions produced by companies’ suppliers and clients in their own processes. At the time of writing, FMG had just announced its ambitious intention to achieve net-zero scope 3 emissions by 2040. For context, 98% of FMG’s scope 3 emissions are produced by customers in steel making, a notoriously polluting process. The company plans to supply green ammonia and green hydrogen to its customers to help them in the transition. These technologies are deemed immature at this point, but FMG appears to be betting heavily on the development of hydrogen within the next decade: its target is to help customers cut their emissions by only 7.5% by 2030 but to reach 100% abatement in 2040. Scope 3 is undoubtedly the most challenging piece of the netzero puzzle, but most miners have already taken steps to address those emissions. Sector initiatives such as the Copper Mark
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certification, which works along the entire supply chain to create sustainability standards and best practices, are set to become more common as large retailers like Tesla and Apple strengthen their demands for green metals. First, miners need to collect and understand emissions data from their suppliers and buyers. “We have more than 20,000, suppliers globally, so we’ve started a project with our global supply chain group to gather meaningful data. Our plan is to review that data, identify the most significant contributions to it, and then enter into some meaningful collaborations with suppliers where we can have a significant impact to try to reduce emissions,” explains Vaccari. But even with the data in their hands, one of the big challenges in building and executing a roadmap to net-zero is the lack of standards on how to calculate and report emissions. Heidi Grantner, General Manager at Synergy Enterprises, has noticed how this hinders miners’ efforts to deal with scope 3 emissions. “Mining companies seem to get tripped up on the reporting standards, and the boundaries that you need to set when you actually measure and report your carbon footprint,” she says. The best practice is to follow the GHG Protocol Corporate Accounting and Reporting Standard, which helps companies measure their own emissions. But as the focus moves from the emissions of a company to those of a product along its entire value chain, measurements too will have to shift. “The process involves working up and down your supply chain to get accurate measurements, and there’s no certification framework at the moment for how to do that properly,” Grantner adds. What is becoming clear is that setting credible net-zero targets might be the easiest part of the journey. Juggling the many moving parts that will need to fall into place in order to make this a reality will be the real challenge for miners moving forward.
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“A great example is the cross trades we are doing between electricians and mechanics, so a mechanic can learn electrical skills and know the mechanical components of a battery electric loader, etc. We need to develop those skills for when we have electric mobile equipment”
ANDREW COOPER ENERGY SPECIALIST NEW GOLD
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THE NEXT MILESTONES On the path to net-zero, miners are experimenting with different hybrid power structures to figure out what works best on their site. Dave Manning, Director of Global Hybrid at juwi Renewable Energy, discusses what he sees as the next milestones on this journey. Energy and Mines: How are juwi’s current hybrid projects for mines performing and what additional opportunities are mines pursuing for global operations? Dave Manning: We continue to see outstanding results at Sandfire’s Degrussa project, and even after six years, we are still finding ways to improve the performance. Agnew is performing exceptionally well, and we are now looking at expanding the PV facility to increase the renewable energy (RE) fraction even higher. Construction has commenced at Gold Fields’ Gruyere site, and pre-construction activities are well advanced at BHP’s Nickel West projects. Our flagship project at Centamin’s Sukari mine is progressing well, even during such challenging times. We have commenced commissioning at Iluka’s Jacinth Ambrosia site, after a flawless, on-time and on-budget construction program. E&M: What are the latest developments for optimising the energy mix for hybrid solutions to reach the full engine and generator potential of energy and carbon savings for mines? DM: Engine manufacturers are now starting to recognize the importance of renewables. As renewable energy increases, we require
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engines that can run at much lower loads (as a percentage) so that we can inject more RE. Overall performance with a more variable load is becoming a target for the OEMs. Many of the larger OEMs are starting to understand the cost and performance value of using BESS as spinning reserve, particularly in the reciprocating gas engine space. Some OEMs are now partnering with BESS manufacturers in order to be able to
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provide complete, packed energy solutions. This, in turn, has a massive effect on carbon production, and cost savings. E&M: What are the key differences and considerations for mining and renewables experts when integrating a small vs large amount of renewable energy for a remote power system? DM: With a low-penetration RE solution, most of the variability is managed with existing spinning reserve, and the implementation is a little more simplistic. In a high-penetration installation, management of the thermal (diesel and gas) assets plays a much larger role in the overall hybrid solution. On a greenfield site, the design of the thermal power station is essential to being able to provide reliable and cost-efficient hybrid solutions. At juwi, our design engineers spend as much, if not more time on the thermal design, as they do the PV and BESS design. Ensuring a robust and reliable interface between RE and thermal assets is critical to success. The ability of the generators to operate efficiently at low loads and manage the variability of renewables is what makes a project successful. On a brownfield site, the challenge is even greater, and you are often having to implement a hybrid solution, with thermal assets and control systems that are not necessarily ideal. E&M: With energy storage economics
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improving, will storage become standard for hybrid projects? DM: In almost all higher-penetration solutions, energy storage plays a significant role. A BESS solution improves the performance of the higher-cost thermal generators, reducing spinning reserve, and therefore, increasing fuel efficiency, and reducing costs. In almost every case, a BESS will improve reliability, reduce risk, and provide a more stable energy solution. There are very few projects we are designing these days that don’t have some form of energy storage E&M: What do you see as the next milestones for hybrid energy innovation in mining? DM: We are starting to see energy storage as the next major milestone. This can be in the form of hydrogen production, stockpile storage or BESS systems. Fleet electrification and changes to the actual mining process, to adapt to renewable energy is becoming a very hot topic. All these topics are critical to the goal of achieving net-zero emissions. The work that the innovation team at Oz Minerals is doing is a great example of how to think and act differently. The results of the “Scalable and adaptable mining” challenge so far are very encouraging, and it’s great to see so many mining service providers working together to design the world’s next generation of mine sites.
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On the way to net-zero MELODIE MICHEL REPORTER Energy and Mines
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chieving net-zero mining operations will take time, but that doesn’t mean miners are waiting to act. With many renewable power decisions to be made in the coming years, Martin Schlecht, Chief Operating Officer at Suntrace, tells Energy and Mines about the challenges ahead for the industry. Energy and Mines: How have you seen the focus on net-zero mining changing the conversation around renewable energy and storage for mines in recent months? Martin Schlecht: I think it’s becoming more and more obvious that companies need to address decarbonisation in their overall strategy, and come up with plans to demonstrate how they’re going to handle this to shareholders and the markets. So they are developing their strategies covering scope 1, 2, and 3 emissions, as well as ESG goals. Some companies start bottom up, implementing solutions at specific sites and then integrating them into an overall strategy. And others are looking at it from a helicopter vision, trying to figure out what the best way to start is. No one is better than the other: it’s very specific to each company, how it is handling its operations and assets, and how it wants to achieve decarbonisation. E&M: What does net-zero power for mines look like? 14
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Photo courtesy Suntrace
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“With today’s technologies and costs, you can design up to a 50% reduction in emissions, depending on your available wind and solar resources.”
MARTIN SCHLECHT CHIEF OPERATING OFFICER
MS: Reaching carbon-free or net-zero operations is a longterm process. At the moment, 100% renewable power supply, including a huge amount of batteries, is not an economic solution compared to thermal. But it might be in a couple of years. So you have to start looking at it in stages. With today’s technologies and costs, you can design up to a 50% reduction in emissions, depending on your available wind and solar resources. And that can substantially save energy costs compared to fossil fuels, in particular for off-grid mines. But the way from 50% to 100% is more complicated, and it will depend on the individual mine, regulations, resources available and existing energy costs.
SUNTRACE
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Photo courtesy Suntrace
E&M: What needs to happen to make net-zero targets a reality? MS: I think that will take 5 to 10 years, maybe 15. Technological solutions are developing fast, in terms of efficiency and reliability. At the same time, costs are decreasing, particularly for energy storage. What isn’t yet factored in the discussion is a possible CO2 pricing on a global scale. This would improve the business case for renewable technologies, because then you would not only be offsetting fuel costs, but also CO2 costs. E&M: What are some of the key takeaways from operational ENERGY AND MINES MAGAZINE
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“In the case of B2Gold’s Fekola Mine, the hybrid is achieving production targets, and using batteries in the network has actually increased power stability.”
MARTIN SCHLECHT CHIEF OPERATING OFFICER SUNTRACE
hybrid projects in mines that you’ve been involved in? MS: In the case of B2Gold’s Fekola Mine, the hybrid is achieving production targets, and using batteries in the network has actually increased power stability. So there’s a shift in the perception that solar will affect power stability and security of supply: if you design the system properly, it actually helps. HFO prices have gone up, partly due to shipping cost, and the mine’s fuel and cash savings are much higher than we anticipated in the original business case. The few years payback period from the initial business case has become even shorter now. 18
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“I think that the quick wins are off-grid, and many of them are in Africa, but there are also many in Asia, Photo courtesy Suntrace
E&M: Geographically speaking, where do you see the biggest near-term opportunities for hybrids for mines? MS: I think that the quick wins are off-grid, and many of them are in Africa, but there are also many in Asia, South America and some even in Australia. It’s always worth checking what options are available to you. Even if your life of mine is limited, there are leasing systems available in the market. You don’t have to buy it or enter into long-term agreements. E&M: What particular challenges are mines still encountering ENERGY AND MINES MAGAZINE
South America and some even in Australia. It’s always worth checking what options are available to you.”
MARTIN SCHLECHT CHIEF OPERATING OFFICER SUNTRACE
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“The market is really diverse and there is no clear-cut option that everyone should be implementing, so it’s very difficult to make a judgement if you’re not an expert in the industry. ”
MARTIN SCHLECHT CHIEF OPERATING OFFICER SUNTRACE
when looking to integrate high-penetration renewable energy solutions? MS: I think the challenge is that most organizations don’t yet have real experience in renewables. It’s not rocket science, but you may have to adapt your thinking around energy for your operations. The market is really diverse and there is no clear-cut option that everyone should be implementing, so it’s very difficult to make a judgement if you’re not an expert in the industry. To understand what is best for you, it can be helpful to get help from neutral advisors that don’t have ties to specific suppliers or developers. Advisors can also help mines choose between signing a PPA or owning the assets. Once you know what you want, it’s easy to ask the right people and avoid confusion. E&M: What are the new areas of expertise that are needed for mines to move forward with net-zero mining goals? MS: Because of decarbonisation, mines now need to carefully consider what kind of energy they use, not only from the cost side, but also from the emission side. And then they need to create reporting about their carbon emissions and their ESG achievements. So I think there’s a whole new administration element coming up for companies. And of course, they also need to execute, because writing is not enough: you have to deliver. Rules are evolving, and they vary across different geographies. So you have to be location-specific. A project in Latin America will be totally different from one in Canada and another one in Africa. And yet, as a company that is working in different geographies, you still have to consolidate your carbon reduction actions into a strategy and eventually into a reporting scheme that makes your stakeholders happy. To comply with all requirements, achieve cost efficient results and on the same token keep doors open for future decarbonisation steps, more and more miners rely on
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independent implementation experts. E&M: So what is possible today in terms of carbon savings with hybrid solutions? MS: Technically, 100% is feasible, but today this can hardly be achieved without a significant energy cost increase. To save or hedge energy cost, most of our clients opt forsolar PV as it is quick and easy to deploy. In most cases, solar PV can thus supply 20% to 30% of energy, up to 50% when adding a larger battery. Every location will have its own renewable profile, but if you have good wind, you may achieve 60-70% renewables without the need for huge batteries. Without wind, using only solar PV & battery, it may not be cost efficient to go beyond 40-50% renewable share at today’s prices for storage. With future reduction in battery prices, the share that can be integrated cost efficiently using PV & battery will grow, thus expanding the system will be an increasingly attractive option. Our recommendation is a stepwise approach, taking advantage as technologies and cost improve: e.g., starting with a 20-25% of renewables and start saving cost as soon as possible while keeping technology options open to do the next step to e.g. 3050% thereafter. Over the last ten years, equipment prices have continuously fallen steeper than anticipated in projections. Looking at the developments and dynamics in the renewable industry, we believe this is likely to continue and will overcome the current surge in prices for modules, steel and logistics.
“Every location will have its own renewable profile, but if you have good wind, you may achieve 60-70% renewables without the need for huge batteries. ”
MARTIN SCHLECHT CHIEF OPERATING OFFICER SUNTRACE
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Hybrid power optimisation for higher renewable penetration MELODIE MICHEL REPORTER Energy and Mines
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s miners work towards 100% renewable power, understanding the unique load requirements of each site is crucial. So is the integration of the many different power elements a mine may use to decarbonise its operations. Mark Kennedy, Business Development Manager, Energy Solutions at Wärtsilä Canada, believes energy management systems (EMS) hold the key to hybrid power plant optimisation. In this article, he shares his insights on current hybrid performance, barriers yet to overcome, and the potential role of hydrogen in the power mix.
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“The economic barriers are increasingly being overcome. The cost of renewables continues to make better economic sense than fossil fuel generation, particularly in light of carbon taxes in many jurisdictions.”
MARK KENNEDY BUSINESS DEVELOPMENT MANAGER, ENERGY SOLUTIONS WÄRTSILÄ CANADA Energy and Mines: There has been an acceleration in the last 6 months of project announcements for renewables and storage for mines — is this the new normal, what barriers to further penetration are being overcome? Mark Kennedy: The economic barriers are increasingly being overcome. The cost of 24
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“Every mine site is different and will have a different path towards 100%
Photo courtesy Wärtsilä Canada
renewables continues to make better economic sense than fossil fuel generation, particularly in light of carbon taxes in many jurisdictions. Similarly, battery energy storage has also been getting cheaper as the technology becomes more mature and in greater demand. Energy storage is allowing for greater utilisation of wind and solar. Finally, the technology that integrates renewables, batteries and thermal power, such as our GEMS Energy management software, is becoming ENERGY AND MINES MAGAZINE
clean energy. The key steps are to first deeply understand the facilities load and available energy sources. ”
MARK KENNEDY BUSINESS DEVELOPMENT MANAGER, ENERGY SOLUTIONS WÄRTSILÄ CANADA 25
more widely used to manage the complex integration of these different energy sources in an optimal way. E&M: What are the key steps for creating the optimal path towards a 100% renewable energy system for a mine? MK: Every mine site is different and will have a different path towards 100% clean energy. The key steps are to first deeply understand the facilities load and available energy sources. In projects where we have seen the highest penetration of renewables there has been a strong wind, solar or hydro resource combined with a large build-out of energy storage and an openness towards alternative fuels such as biofuels or hydrogen. E&M: How are current hybrid projects performing and can you share any details of new projects with mining operators? MK: Wärtsilä hybrids are performing well and reducing fossil fuel consumption significantly. The Essakane project saves 6 million litres of fuel per year and at Fekola mine, 13 million litres of fuel. There have been several new projects such as the recently announced project with Zenith Energy in Australia where our hybrid systems will help islanded mines to decarbonise yet maintain high reliability. E&M: What are some of the recent developments for optimising the energy mix and performance of hybrids for mines? MK: Continuous improvements and developments in the Energy Management System software, which is basically the brain of the system, is where we are seeing better opportunities for optimisation. Smarter dispatch 26
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functionality is enabling greater efficiency in the overall system, especially the interplay between renewables and battery storage. Wärtsilä continues to develop its GEMS software platform, adding greater speed and functionality. E&M: What role do you see for hydrogen as part of mining’s power decarbonisation pathway? MK: Hydrogen will be another extremely important part of the decarbonisation puzzle. Wärtsilä gensets can already accept hydrogen blends in our natural gas engine portfolio. We have a roadmap to 100% hydrogen in Wärtsilä’s large medium speed engines, with millions of dollars being spent on R&D. To make the switch to hydrogen there also needs to be a build out in hydrogen infrastructure to make the fuel more widely available. This should play out in the next few years and will be another compliment to hybrids, renewables and energy storage.
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Hydrogen will be another extremely important part of the decarbonisation puzzle. Wärtsilä gensets can already accept hydrogen blends in our natural gas engine portfolio.
MARK KENNEDY BUSINESS DEVELOPMENT MANAGER, ENERGY SOLUTIONS WÄRTSILÄ CANADA
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‘No aspect of a mine will remain untouched’ MELODIE MICHEL REPORTER Energy and Mines
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here may not be one perfect solution to decarbonise the mining sector, but the transformation is happening nonetheless. Trevor Gilchrist, Practice Leader, Mining and Debra Johnson, Senior Advisor, Sustainability at Stantec, have seen mining companies’ strategies and the overall decarbonisation trend evolve dramatically in recent years. Here, they share their observations and predictions about the different paths the industry will take to net-zero. Energy and Mines: Which disruptive technologies will likely be the most effective in terms of completely replacing diesel for mine energy, transport and processing? Trevor Gilchrist: On the mine infrastructure side, that remains an open question, and the industry has yet to see widespread implementation of truly disruptive technologies. The most obvious exception is the growing use of battery electric vehicle (BEV) technology, although it must be said that at this stage, those vehicles essentially replace the diesel drivetrain
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with BEV, and the vehicle remains similar. Is it truly disruptive? Other contenders include several variations of rail or monorailbased concepts that are readily electrifiable, and being strongly considered, or implemented in several cases. On the energy supply side, the answer may be less of a single solution, and more of a range of technologies that are implemented over time as they develop. In the near term, known solutions like wind, solar, energy storage, carbon capture and biomass are already being implemented. Those technologies on their own are not likely to completely replace diesel. Couple those, however, with solutions which are further out in the pipeline, and the path to true net-zero is clearer. Those solutions include things like hydrogen and small modular nuclear reactors (SMRs) which are being developed aggressively, further development of biogas, and geothermal. E&M: What are the main challenges for mines in trying to lower emissions while maintaining production targets? Debra Johnson: Most of the technologies that will materially lower carbon emissions over the next decade are either relatively new to mining or in development. Mining’s relationship with cutting edge innovation has not been strong for a variety of reasons, not least of which is the fact that innovation can be disruptive to productivity. The perception is that the technology isn’t mature enough to do the job. Often the technology’s maturity is not the issue, but rather, execution falters causing issues that are inappropriately extrapolated to a scaled implementation. When pilots are structured as a validation and foundation for scaling rather than as a proof of concept, the success rates are much higher. Stantec is positioned to help both mining companies and innovative technology suppliers by bridging this gap in execution.
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E&M: Are mines attracting new types of “green capital” to support their decarbonization projects? DJ: Mining companies with positive ESG (environment, social and governance) metrics attract interest from many different types of investors. ESG drives financial performance and reduces risk, which in turn attracts investment; this capital is then invested into decarbonisation projects that further enhance ESG metrics. It’s a virtuous circle regardless of the colour of the capital! So yes, the market and green capital are supportive of decarbonisation projects in their own — sometimes round-about way. E&M: How are decarbonisation goals driving the integration of power generation, mobility and processing systems? TG: For existing operations, it’s really about finding efficiencies in existing systems, and in some cases replacing them with different, less carbon-intensive, or electrifiable transport systems. On the power supply side, it’s about how the power is generated, and implementing some of the initiatives already discussed. For new projects starting with a blank slate, there are several possible strategies. The goal is to move less material over shorter distances, while using clean energy to move what must be moved. Many projects are carefully considering location of infrastructure, i.e. locate processing close to the source, and consider several alternate solutions where that is not feasible. For example, one project which involved several mines distant from an existing mill considered use of ore sorting to significantly reduce the quantity of material to be moved. Other examples include careful consideration of elevations that tailings need to be pumped to, and siphoning, rather than pumping reclaim water, and then recovering energy from it.
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As pressure to decarbonise mining continues to mount, the other factor that will drive this integration is that companies will begin assigning a value to carbon reduction. This means that return on investments (ROIs) for energy and decarbonisation projects that would normally fail to beat out competing operational improvement projects will eventually percolate to the top in the capital budget analyses. E&M: How are operational energy strategies for mines aligning with mid and long-term carbon reduction targets? DJ: Most of the Tier 1 and some of the Tier 2 miners have made commitments to achieving carbon neutrality by 2050 with at least Scope 1 and 2 emissions, as well as 30% emissions reductions by 2030, with a few having even more aggressive targets. The conversations we are having with our clients reflect the seriousness of those commitments. At the same time, challenges persist in bridging corporate carbon reduction goals with budgets and operational realities. Therefore, we are seeing clients working to build momentum in existing operations with more established technologies like wind and solar paired with mature energy storage solutions like Pumped Hydro Storage (PHS) and Battery Electric Storage Systems (BESS), since these are relatively easy to include in operational strategies. These initiatives are being implemented because miners have enough confidence that they can be successful with these technologies. Being in an upcycle also helps with being able to invest in these initiatives to keep up with the current rapid pace of change. Step change energy strategies like green hydrogen, ammonia as fuel, and other newer energy storage solutions will generally not be coming on board for a few years. Nonetheless, we are seeing
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opportunities to use an agile approach to deliver incremental innovations, thereby providing necessary foundations for step change strategies. E&M: As decarbonisation targets ramp up, what level of renewable energy integration will become attractive and/or necessary for mining companies? TG: There is no question that a very high level of renewable energy integration will be needed. Accordingly, when you talk about the level of integration, you are also talking about how renewables will be paired with technologies like mine electrification, green hydrogen, green ammonia, and various energy storage solutions. These integrations are essential to achieving decarbonisation targets since renewable energy cannot by itself replace fossil fuels, especially diesel. Also worth noting is the circular relationship between renewables and mining. The end users for renewables will likely not accept that their batteries were manufactured using large amounts 34
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of non-renewables like diesel. In turn, mining companies will have to demonstrate that they are pursuing higher levels of renewables. E&M: Beyond powering operations, how are renewables expected to play a role in broader energy and sustainability goals - i.e. minerals processing, fleet decarbonisation and electrification initiatives? DJ: The mining industry is in the midst of the biggest and most rapid change in any time in history. In 10 years, the industry will be dramatically different from what we see today. No aspect of a mine will remain untouched by this intersection of decarbonisation, energy transition, digitalisation, globalisation, and innovation. Renewables will drive efforts to replace existing energy sources, but will also influence what new technologies are developed for fleets, processing and electrification. Equipment manufacturers will ultimately focus their efforts on developing solutions that will both adapt to and leverage the limitations of renewable energy. ENERGY AND MINES MAGAZINE
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