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October 28, 2020

#Mining the Sun: Mining sector on the verge of a #RenewableEnergy Boom -particularly #Solar.


BHP Nickel West has extended its PPA with Southern Cross Energy to 2038 as the mining giant looks to integrate renewable energy into its processes toward the goal of meeting its emissions reductions goals and producing 'sustainable nickel', a necessary requirement for potential client Tesla. The extended deal begins at Nickel West's Leinster and Mount Keith operations with the development of an 18.5 MW solar farm and battery storage system. 

Mining the sun

The mining sector is verging on a new boom, that of renewable (and particularly solar) integration. Mines tend to be remote and, certainly in Australia, sun-drenched. This combo means that solar is a very attractive option to mining operations that have so far relied on diesel. 

However, one of the main challenges to solar integration at many mine sites around the world is the tricky nature of mine life expectancy. This is to say, without a long-life expectancy, 10 plus years at least, it is difficult for a mine to commit to an on-site solar or wind farm. So far, the most popular route around this hurdle is PPAs, as in the case of BHP Nickel West and SCE. 

However, another option, demonstrated earlier this month at the Agnew Gold Mine in WA, is the installation of solar microgrids on site. The Agnew Gold Mine recently saw the completion of a 7.7 MWp hybrid microgrid and a 2 MW battery storage system by British energy firm Aggreko. 

The key to this latter project is that it is a modular and mobile solution. As Aggreko's Managing Director of Microgrids and Storage Solutions, Karim Wazi, told pv magazine Australia: "For MW-scale semi-permanent solar power plants, we enter into PPA contracts ranging from 5-15 years. This means that if a mine is only operational for five years, Aggreko can demobilise the assets and redeploy them to another customer, thereby assuming utilisation risks and providing flexibility for the customer. In 2021, we are launching a much more redeployable product in the 100kW range that we will be able to offer over rental periods as short as a few months." 



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