100% renewable energy for mines

Jean-Philippe Castonguay, director of off-grid hybrid power and partner at BBA, shares his views on the growing momentum for renewables integration in mines: how did we get here, what’s lacking for further penetration and what’s likely to change in the next five years.

From his Montreal office, Castonguay has observed a global shift in renewables interest from mines in the past year. When previously mines looked for advice on how and where to start the journey, today many have already implemented initial solutions, and want to expand their reach into larger penetration opportunities.

In the phased approach so familiar to energy consultants, many of BBA’s clients have reached the second stage. “We’re still at a growth and exploratory period when it comes to renewables, but we’re reaching a second era where a lot of the mines have demonstrated that low penetration is possible, and now they are inching into deeper waters,” he says.

Of the mines that are still in the development stage, many are very ambitious, willing to install a high amount of renewables, and

there, BBA becomes a guide, reminding them of what they can realistically achieve without compromising the electrical network’s reliability. “It’s important to learn about your network before altering it with renewable technologies,” comments Castonguay. “Depending on the life of mine, it sometimes makes sense to do it over multiple years and ramp up production and electrical generation as you build up confidence.”

“If you look at Raglan’s recently commissioned second wind turbine for example, that was done in a stepped manner: the first turbine was installed, they saw some positive results, and then they went for the second,” he adds. “By doing that, they were able to minimise risk and not find themselves in a stage where there’s impact on mine processing operations.”

According to Castonguay, this growth and

change in interest comes from a number of success stories emerging from industry pioneers, who have achieved renewables integration without hindering operations, and with positive results. “It’s generating much more widespread interest, and investments are easier to justify because you’re not the first guinea pig, there’s been a few before you, and they are showing some positive outcomes to the general market,” he adds.

CAPITAL VS. OPERATIONAL SAVINGS

Still, a number of issues are hindering largescale progress, namely financial and technical. Financially, Castonguay explains that investments that are highly dependent on subsidies, and that while commodity prices are currently quite low, construction costs remain high, mostly because mines are usually so remote that shipping and labour are expensive.

“We’re still seeing to some degree a hope that installing renewables can help drive down capital investment by reducing the amount of generators that need to be purchased,” he says. “But right now, a full lineup of generators are still required, so capital investment remains the same. These investments are only affecting the operational side, driving the life of mine cost down by driving down annual fuel consumption and maintenance costs.”

In order to overcome those financial hurdles, Castonguay has seen mines leave renewables integration out of their initial plans in order to obtain financial backing to build the site. “They’ll get that financial backing with the necessary power generation installations, and then once they generate funds, they can self-invest into renewables for operational improvements,” he says.

“If you look at Raglan’s recently commissioned second wind turbine for example, that was done in a stepped manner: the first turbine was installed, they saw some positive results, and then they went for the second.”

and solar. “We might have the right technologies available, but in no way would it be financially possible to justify. We’re seeing cost reductions in commodities that are helping and over time will justify digging deeper, but it’s still difficult,” Castonguay points out.

One area that is showing promise is the research into small modular reactors (SMRs) - mini nuclear reactors that are being developed primarily within Canada for the mining market. “There’s been a lot of interest, government backing and development money put toward that, and it’s making some headway,” he says. While nuclear energy is not renewable per se, it is a no-emission solution that produces high-quality power, able to support mining operations.

“I think we’re still 15-20 years away from that, there’s still a lot of work needed to develop the technology and also, importantly, the social acceptance of nuclear, because it’s not necessarily seen as a no-risk operation,” Castonguay explains. “But should that technology take shape, it’s going to be very promising for mining operations, in particular those with power needs of 20 MW and up.”