Renewable Energy Applications in the mining sector Pépin TCHOUATE HETEU (PhD, Dipl.-Ing.) Senior Energy, Environment, Climate change mitigation Consultant&Scientist

6th Zimbabwe Mining & Infrastructure Indaba 08-10 October 2014

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Renewable Energy Applications in the mining sector

Pépin TCHOUATE HETEU (PhD, Dipl.-Ing.)Senior Energy, Environment, Climate change mitigation

Consultant&ScientistDirector DEECC Consulting, Belgium


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Few words on DEECC Consulting• Consultancy services in

– Planning & integration of renewable energy plants in existing grid or remote areas

– Energy audits– Renewable energy policy and regulatory aspects– Design of combined Heat/Power/Cooling generation plants– Rural electrification– Engineering of energy grids and facilities– Environmental Impact Assessment

• Design & Implementation of Capacity Building activities


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Introduction

• The mining industry is changing the way it manages energy. In recent years, rising costs have driven the industry to focus on efficiency, but efficiency can only go so far.

• To solve this growing challenge, renewables will play a crucial role, for both grid-connected and remote sites


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Reasons for Renewables in the mining sector?

1). Energy price and stability is a significant factor in mine profitability. Mines are actively seeking energy alternatives that provide stable power at stable prices.

2) In South America, Europe, Asia and Australasia, renewables have reached grid parity with fossil fuels bcause of high electricity prices in mining centers.

3) Power quality for grid tied mines in developing countries leads to frequent outages and loss of production driving the mining sector to explore more reliable, self-supplied power.

4) The increased demand for metals and minerals in the world has forced mining companies to more remote sites and to sites with lower grade ore, with subsequent increase of energy production cost.

5) Emissions legislation including carbon tax and green energy incentives are being proposed or are in place in Australia, South Africa, Brazil, Chile and parts of Canada. Mining companies increasingly have to fiscally account for greenhouse gas emissions and are financially encouraged to seek alternatives.


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Reasons for Renewables in the mining sector?

6) The use of renewables improves the reputation of mining companies.

7) CSR is now a priority for many mining companies. Sustainability reports now often highlight alternative, low-pollution energy initiatives.

8) By 2022 renewables use by the mining sector is expected to increase to 5%-8% (from today’s level of 0.1%). Wind and solar will account for 60% of renewable energy investments by 2022.

9) There are now numerous working examples of renewables at mine sites delivering stable power at affordable prices. Renewables is becoming more accepted by the risk averse mining sector.

10) PPAs and ESCO models are becoming more attractive– enabling faster adoption, de-risking the investment for the mining sector.

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Declining grid-connected PV system cost


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Economics

Source: IRENA 2012 Gen: Generator, PV: Photovoltaic, Strg: Storage



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Few selected examples Location Capacity Supply

[GWh/y]tCO2 avoided/y

Status

Pozo Almonte(Chile) 25 MWdc 60 48 000 Op 2013

Calama (Chile) 1,1 MWdc 2,3 2152 OP 2012

Northern Chile CSP - 100 MWPV - 75 MW dCMSS – 14 hrs

700-800 560 000 – 640 000

Under negociation

Lonmin Marikana (SA)

8 MWp

Pampa Elvira (Chile) 51,8 (th) 15 000 Op 2013

Crominet NRG (SA) 1MWdc 1,8 Op 2014

Bonaire (Caribean Island)

11MW wind14 MW diesel3 MW battery

Operating

CSP: Concentrated Solar Power MSS: molten salt storage


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RE investment forecast in the mining industry (2013-2022) – Base case

Source: “Renewable Energy for the Mining Industry Revenue by Technology, Aggressive Investment Scenario, World Markets: 2013-2022,” Renewable Energy in the Mining Industry, Navigant Consulting, Inc., 2013

38 39 51 37 44

262174

688

532

312

445379

1343

1047

729

0

200

400

600

800

1000

1200

1400

1600

North America Europe Asia-Pacific Latin America Middle East &Africa

in m

illio

ns o

f US

$

2013 2018 2022


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Main renewable integration issuesA power system comprising renewable energygeneration, is sensitive to production intermittence:• Frequency zags due to lack of spinning reserve• Voltage variation outside equipment

Micro Grid and Storage Solutions help to:• Balance locally Generation & Consumption• Share the load between both generation facilities• Offer new means to manage power flows


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Steps for designing a renewable plant in mining

• Energy audit to optimize the demand side : 1. to lower the cost of energy 2. to reduce energy consumption and peak demand

• Analytical tools to determine the optimal amount of solar, wind and energy storage

• Economic analysis• Final specification for operating rules


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Other issues while designing a renewable plant in mining

• Microgrid systems integrating the best of all technologies together lower the overall cost of energy and reduce GHG emissions

• PV and wind lower fuel consumption in the range of 30-70 percent, but it’s limited due to the high cost of energy storage

• Geothermal can replace base load• Batteries are still expensive and should therefore be

designed/used batteries only for short term intermittencies (10-20 mn)


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The Danvest-Siemens solutions

• Danvest and Siemens are working on a hybrid-diesel-wind off-grid power generation system , 5-10 MW, typical range to supply australian mines in areas of good wind resource

• Hybrid PV-diesel


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How does it work?

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Case study : Australian project Project Details and Assumptions12 MW average power consumption for mining site7.5-8.0 m/s average wind @ 80 meters height 55% yearly fuel saving from hybrid installation0.75 EUR/liter fuel (light fuel)

Cost estimation Euros

Wind Turbine System8x2.3MW wind turbines, Roads and hardstandsCable connections, FoundationsEstablishment of site, ManagementTotal Price WTG and cabeling 32 107 383

Danvest Power Box System5x1.2MW Danvest Power Box System

6 600 000

Transport, installation and commissioning 1 046 980

Project managementProject development

3 489 933 697987

Total Capex 43 942 282



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Comparison of Operating expenses Euros

Wind-Diesel with 55% yearly fuel savingFuel (45.000.000 kWh) Operating expenses Wind turbinesOperating expenses GensetsOverhead

Operating expenses SYSTEM

8 977 852 794 896 531 831

279 195

10 583 7740,10€/kWh

Diesel generators onlyFuel (105.120.000 kWh)Operating expenses GensetsOverhead

19 260 242 1 140 940 279 195

Operating expenses DIESEL ONLY 20 680 3760,20 €/kWh

Net Savings - 10 096 602

Pay Back Time: 4,4

years


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Why working with us?• Pre/Feasibility studies • One-stop turnkey solutions including planning, engineering, installation &

commissioning, and service• Integration with existing diesel generators or delivery of new diesel power plants• Delivery of wind and/or solar parks • Technology selection, sizing and delivery of energy storage• Power management for economically optimized, automated operation• Complete package including electrical balance of plant and grid integration• Fast development time

We combine best technology providers: SIEMENS, Caterpillar, Danvest, etc.


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Thank you

Our Contact : [email protected] Tel: +32-485-914555 www.deeccconsulting.com

mailto:[email protected]

http://www.deeccconsulting.com/

Documents

Renewable Energy Applications in the mining sector Pépin TCHOUATE HETEU (PhD, Dipl.-Ing.) Senior Energy, Environment, Climate change mitigation Consultant&Scientist