Tag Archives: Electrification

Dana builds out China electrification capabilities

Dana has added five facilities in China since the start of 2019 as it looks to strengthen the company’s capabilities for electrification and hybridisation across several markets, including the off-highway sector, throughout the region.

The expansion is the result of Dana’s recent acquisition of the SME Group, as well as the Drive Systems segment of Oerlikon Group, including the Graziano and Fairfield brands, Dana said.

The added facilities expand Dana’s engineering, manufacturing, testing, and aftermarket service in China, and are located in:

  • Shanghai, which engineers and manufactures SME AC electric motors, inverters, controllers, and accessories;
  • Changshu, which produces planetary gear reducers for e-Drives;
  • Baoding, which will make e-Axles for new energy buses, and;
  • Suzhou, one which produces city bus axles; and a second that produces drives, axles, and gears primarily for off-highway mobile equipment and industrial machinery.

Dana’s footprint in China now encompasses more than 6,750 employees at 23 operations, including those in which Dana holds an interest.

Jim Kamsickas, President and CEO of Dana, said: “Dana has been operating in China for more than 25 years and we see a strong opportunity to accelerate our growth in the Asia-Pacific region.

The addition of these facilities shows how Dana will continue to invest in expanding our capabilities for vehicle manufacturers in China – especially for those that are bolstering their electrification initiatives.”

Dana invests in electric hybrid vehicle conversion specialist Hyliion

Dana has entered into a strategic partnership with Hyliion, which will see the New York-listed company take an equity position as a lead investor in the Class 8 electrification company.

Dana said: “The investment is another step in a cadence of strategic transactions to position Dana as the leader in e-propulsion.”

Under the agreement, Dana will become Hyliion’s source for traditional driveline components, as well as fully integrated e-axles – which include motors, inverters, controls, gearboxes, and thermal-management technologies.

Hyliion, founded in 2015, develops intelligent, electric-hybrid architectures for Class 8 vehicles that can be installed on new trucks or retrofitted on existing trucks. This could, essentially, see it turning a traditional 6×2 truck into a 6×4 hybrid. “The Hyliion 6X4HE features the company’s proprietary machine-learning algorithms and battery technology to optimise fuel savings and vehicle performance for reduced emissions and a better driver experience,” Dana said.

Mark Wallace, President of Dana Commercial Vehicle Driveline Technologies, who will become a member of Hyliion’s board of directors as part of the deal, said: “Dana’s investment in Hyliion continues to expand our growth and leadership in electrification across all vehicle segments and partners us with a front-runner in the hybridisation of Class 8 vehicles for fleets ready to adopt electrified vehicles today.

“Together with Hyliion, we have a unique opportunity to develop long-haul solutions that revolutionise power conveyance and support fleets in meeting their efficiency goals, while simultaneously advancing de-carbonisation efforts.”

With its investment in Hyliion, Dana is positioned to supply customers with complete hybrid systems through Hyliion’s intelligent electric-hybrid controls, proprietary battery technology, and integration capabilities, along with Dana’s offering of Spicer® Electrified e-Axles; TM4® motors, inverters, and power electronics; Long® thermal-management solutions; auxiliary system motors through Dana’s acquisition of SME Group; and traditional Spicer® axles and driveshafts, Dana said.

Thomas Healy, CEO of Hyliion, said: “Dana’s wealth of knowledge and extensive strategic experience in the commercial-vehicle market creates a dynamic combination for our Class 8 hybrid platform. We are excited to be joining forces to offer a go-to-market solution for fleets seeking e-propulsion technologies available today in the Class 8 segment.”

Dana’s established field service specialists will work together with Hyliion’s team to jointly call on fleets throughout North America, Dana said.

Hyliion offers fleets a way to decrease fuel expenses and lower emissions by turning semi-tractors into intelligent electric hybrid vehicles. Its patented technology can be used on new or existing vehicles. Requiring no driver training, Hyliion products reduce fuel consumption, reduce emissions, and provide a positive return to fleets and the environment immediately, Dana said.

Wood Mackenzie poses mine electrification and automation question

Electrification and automation will be key priorities for mining companies in 2019, new research from Wood Mackenzie has claimed.

In reviewing the research firm’s ‘Global trends: what to look for in 2019’ report, Wood Mackenzie Research Director, Prakash Sharma, said: “Building a world-class low-cost mining business seems to be the mantra.

“Major players, such as BHP, Rio Tinto and Vale, are increasing the share of electricity and automation in mining operations. The objective is to not only reduce scope 1 emissions (from their own activities) and air pollution, but also to lower human involvement and operating expenditure.

“By employing data analytics, companies are chasing productivity and efficiency and lowering costs as a result. The aim is to stay at the lower end of the cost curve should demand for traditional mining commodities fall.”

In 2017, BHP set a long-term goal of achieving net-zero scope 1 and 2 emissions in the second half of this century, while, in 2018, Rio Tinto announced successful deployment of AutoHaulTM (pictured), “establishing the world’s largest robot and first automated heavy-haul long-distance rail network in the Pilbara region of Western Australia”, Sharma said.

“The key question will be whether other mining majors follow this trend in 2019.”

In terms of adopting automated technologies, BHP and Rio are far from being alone.

Vale’s Brucutu iron ore mine in Minas Gerais, Brazil, is set to go fully-autonomous this year – as a fleet of seven new Caterpillar 240 ton (218 t) 793F CMD fully autonomous trucks is expanded to 13 – Fortescue Metals is continuing its manual-to-automation fleet conversion at Christmas Creek, in Australia, and Norilsk Nickel recently told IM it was looking to introduce a “fully-automated mine”.

This is only the start.

NGEx Resources and Filo Mining, which are looking to develop open-pit copper operations in South America, confirmed in the past few months they were looking to incorporate autonomous haul truck technology from the off. These admissions came in their prefeasibility studies, which are likely to pre-date mining operations by three to five years.

And, underground, Resolute Mining and Sandvik plan to fully-automate the Syama block cave mine in Mali this year. The mine started commissioning at the back end of last year, hit the first production stopes in December and is expected to ramp up to steady-state output of over 300,000 oz/y by June.

This is but a handful of trials and projects going on in the automated mining space, with the process plant end also seeing a number of innovative trials or installations to move away from manual mode.

On the electrification question, specifically, Sharma told IM that grid-connected mines were acting faster when it came to adoption compared with those operating remotely. “Shovels and drilling machines at surface mines are already using electricity. Up to 100 t dump trucks are using electric-motors (battery-operated) at some mines in China,” he said.

“At underground mines, electric machines are increasingly used but batteries are yet to take off.”

The latter isn’t the case in Ontario, Canada, where Goldcorp (Borden) and Kirkland Lake Gold (Macassa) are using battery-powered equipment underground in their load and haul and utility fleets. In Sudbury, Canada, too there have been a number of deliveries of such machinery to some of its world-renowned base metal mines. (You can hear more about this at the inaugural Electric Mine conference in April).

As with the majority of technology projects, finance is the biggest hurdle for widespread adoption, according to Sharma.

“Another issue is around the financial health of the mining companies. Some are not willing to re-invest due to uncertainty around the commodities they mine. Some are focused on diversification of portfolios. There are others who want to act quickly, consolidate and take first mover advantage to decarbonise,” he said.

“We believe the electrification and automation in mining will continue to expand and tightening environmental policies will drive the shift. But a ‘one-size-fits-all’ approach will not work,” he concluded.

ABB reaffirms four pillar strategy following Power Grids sale to Hitachi

Hitachi has agreed to acquire 80.1% of ABB’s Power Grids division in a deal that come with an enterprise value (EV) of $11 billion.

ABB says this divestment is an expansion of its existing partnership with Hitachi that dates back to 2014. The EV is equivalent to an EV/operating profit EBITA multiple of 11.2 x 1, ABB said.

ABB said: “Since 2014, Power Grids has been significantly improved under the ownership of ABB. The latest results (Q3, 2018) are at the target margin corridor, having more than doubled margins, with positive third party base order development recorded for the last six consecutive quarters.”

The Power Grids division serves utility, industry, transportation and infrastructure customers and is focused on addressing key areas such as the integration of renewable energies, growing network complexity, grid automation, and micro-grids.

ABB continued: “In the fast-changing world of energy infrastructure, with a shifting customer landscape and the need for financing and increased government influence, ABB believes Hitachi is the best owner for Power Grids.

“As a stable and long-term committed owner, with whom ABB has developed a strong business partnership since 2014, Hitachi will further strengthen the business, providing it with access to new and growing markets as well as financing. Hitachi will accelerate Power Grids to the next stage of its development, building on the solid foundation achieved under ABB’s previous ownership.”

As part of the deal, ABB will initially retain a 19.9% equity stake in the joint venture, but the transaction agreement includes a pre-defined option for ABB to exit the retained 19.9% share, exercisable three years after closing, at fair market value with floor price at 90% of agreed EV.

The joint venture will be headquartered in Switzerland, with Hitachi retaining the management team to ensure business continuity.

ABB says this deal is all part of its efforts to simplify its business model and structure. Effective April 1, 2019, ABB will discontinue its “legacy matrix structure”, allowing its four leading businesses to serve customers even better, it said.

These businesses are the Electrification, Industrial Automation, Robotics & Discrete Automation and Motion.

“Each business will be either the global #1 or #2 player in attractive markets with strong secular drivers. ABB’s established domain know-how, world-class engineering and technology expertise, will position the four businesses well to deliver innovative products and solutions for enhanced customer value,” the company said.

“Based on ABB’s common digital platform ABB Ability™, the businesses will provide tailored digital solutions, driving enhanced customer value. Building on emerging technologies including artificial intelligence and its strong software offering, ABB Ability will meet the increasing demand from ABB’s customers for digital solutions in the rapidly changing industrial world.”

ABB CEO, Ulrich Spiesshofer, said: “Our four newly shaped businesses, each a global leader, will be well aligned to the way our customers operate and focus stronger on emerging technologies such as artificial intelligence. The continued simplification of our business model and structure will be a catalyst for growth and efficiency in our businesses. Our businesses will be further supported through the transfer of experienced resources from today’s country organisations.”

The Electrification business, which presently has an addressable market of $160 billion, will have strong exposure to rapidly growing customer segments including renewables, e-mobility, data centres and smart buildings, ABB said. It will be led by Tarak Mehta, currently President of the Electrification Product division.

The Industrial Automation business will include ABB’s industry-specific integrated automation, electrification and digital solutions, control technologies, software and advanced services, as well as measurement and analytics, marine, and turbo-charging offerings. The addressable market of $90 billion is expected to grow on average by 3-4%/y over the long-term. The business will be led by Peter Terwiesch, currently President of the Industrial Automation division.

The Robotics and Discrete Automation segment has digital solutions and services that provide customers with enhanced safety, efficiency, up-time and speed, and cater to the growing customer demand for flexible and integrated manufacturing solutions, ABB says. It will be led by Sami Atiya, currently President of the Robotics and Motion division.

The Motion business, meanwhile, will provide customers with a range of innovative electrical motors, generators, drives, and service, as well as integrated digital powertrain solutions. It will be the number one player in the sector and be led by Morten Wierod, currently Managing Director Business Unit Drives.

ABB intends to host a strategy update alongside its December quarter results, expected on February 28.

Norilsk Nickel continues digitalisation drive towards automation

Russia-based Norilsk Nickel is actively implementing its Technology Breakthrough programme and is seeing significant returns when it comes to exploration and operations knowledge, Sergey Dyachenko told IM earlier this week ahead of the company’s Capital Markets Day in London.

While the programme, which started in 2014, aimed to digitise and automate most processes at the company’s extensive mining and processing facilities by 2020, Norilsk’s Chief Operating Officer said increasing the company’s exploration knowledge was a fundamental aim.

“We spent a substantial amount of money, time and expertise to get the best understanding of what our mineable reserve is,” he said. The company has now taken this fully-digitised dataset and put it into a 3D environment, where geologists, mine planners and engineers can analyse and interpret where the company may look to explore, drill, develop or mine next.

This is having a knock-on effect across the group, according to Dyachenko.

“The further we move with resource knowledge, the more precise figures will go into our strategic plan,” he said.

He talked about the company moving from longer-term planning scenarios to hourly planning with the help of an underground automated dispatch system and simulation models that could be run as regularly as every month.

After successful trials at one of the company’s mines, simulation models have been developed for every operation and are now in use for regular mine planning in order to confirm operating drivers, he said, adding that the vendor could launch this programme commercially in the next few years.

These investments have been bolstered by a new data centre platform and enterprise data network, and the installation of 956 km of high-speed fibre cable to its main Norilsk hub in Russia.

Norilsk is a city in Krasnoyarsk Krai, located above the Arctic Circle, where the company has been mining nickel, copper, cobalt and platinum group metals for several decades. The mineral-rich region has played a big role in the company becoming and retaining its position as the largest high-grade nickel and palladium producer in the world.

These technology developments should allow the company to improve transparency at its underground mines and speed up operational changes and maintenance, according to Dyachenko (pictured, left).

“By mid-next year, we will have all of our processes – not just loading and hauling – in a real-time environment,” he said.

Moving maintenance procedures into real-time and predictive mode, plus transitioning from a paper-based to electronic metal accounting system were two of the other aims of the Technology Breakthrough programme, he added.

Automation and electrification

The company is to continue spending on what it calls “advanced digital technology”, with some $80 million set aside for 2018 to 2021.
From January 1, SAP’s enterprise resource planning software will have been rolled out across all production sites for improved productivity, and sensor equipment (such as bucket teeth monitoring on excavators) will also be installed at key operations.

Pilot projects in computer vision, robotics and data mining will also progress, while exploration projects using drones and other airborne surveillance tools are being weighed up.

“In all of our operations, we look at the opportunities to use artificial intelligence and big data, end-user analysis and preventative maintenance,” Dyachenko said, adding that the drivers for these were around safety, productivity, operational performance and cost efficiencies.

And, as is becoming commonplace across the mining space, Norilsk is looking into bringing greater means of automation into future underground operations.

“Currently, we have a vision to introduce a fully-automated mine,” he said.

The first candidate for such a shift is likely to be the Skalisty nickel-copper-PGM underground project (pictured) at the company’s Polar Division, Norilsk’s key production asset located on the Taimyr Peninsula.

The project is currently commissioned at an operating capacity of 700,000 t/y and is expected to be ramped up by an additional 1 Mt/y by 2021. The overall target capacity is 2.4 Mt/y and the total capital expenditure (2013-2020) will amount to $2 billion.

Dyachenko said the company was in the process of finishing the shaft sinking and lateral development work and, after completion, would start to look at how to utilise new technologies to automate operations.

The development of Skalisty, the deepest mine in Eurasia at more than 2,000 m depth, according to Norilsk, could also see the company introduce battery-electric equipment, according to Dyachenko.

While the company has not yet identified a specific piece of battery-powered equipment for the task, Dyachenko said the company was already analysing how it could accommodate such loading and hauling machinery into operations.

“Those technologies don’t provide a continuous operation for extensive periods of time and we will have to take this into account,” he said, explaining that the mine plan will need to incorporate battery re-charging or change-out approximately every five hours.

ASI acquisition to reinforce Epiroc’s OEM-agnostic transition

Amid all the justified hype surrounding the launch of Epiroc’s second generation of battery-electric machines in Örebro, Sweden, this week, the company’s recent M&A activity was somewhat forgotten.

The acquisition of 34% of ASI Mining, a subsidiary of Autonomous Solutions Inc, is one of the more interesting buys the company has made in the past month or so and Helena Hedblom, Epiroc’s Senior Executive Vice President Mining and Infrastructure, provided further insight into why the company made the move for the US-based company.

ASI Mining’s products include on-board hardware and software that convert vehicles to autonomous operation, as well as system level software platforms for command and control of autonomous fleets across various mining applications. The solutions integrate with various mobile mining equipment, regardless of make or model. While the company aims to provide a broad mining remit with its Mobius solution, it has so far only made inroads into the surface mining space.

Hedblom, first off, said ASI’s automation retrofitting capability would bolster Epiroc’s open-pit mining offering, which includes production and exploration drilling equipment.

The partnership with ASI will also reinforce a much deeper shift in the company’s future product and systems strategy.

Hedblom said: “Our strategy when it comes to system integration…is to be able to offer a solution that can really drive productivity for our customers. To do that, you need to combine the full system of vehicles. You cannot only do it with one type of equipment.

“That’s why we have a clear strategy to be OEM-agnostic in everything we do.”

She continued: “The solutions you will see here [in Örebro] and, also the capabilities ASI brings, is [all around being] OEM-agnostic. It allows us to respond to the needs that the customers have when it comes to being OEM agnostic…I do believe that is what the industry needs, otherwise it will not be possible to reach the full potential when it comes to productivity.”

This philosophy can also be seen in the latest generation of battery-electric machines and systems, according to Epiroc’s Global Marketing Manager – Electrification, Erik Svedlund.

“OEM-agnostic goes to everything we do. For example, in the charging of our machines, we have already selected the solution from surface where we use the same type [of charger] that the car manufacturers do. This is a super-fast charging system for the car industry, but it will be our standard charging.

“This is important because then we can standardise an open interface between all the OEMs and all equipment in mines can be charged from the same charging infrastructure. It’s very important not to lock in customers to special designs.

“We believe, long term, this will be a benefit,” he said, adding that this charger change came about from the learnings of some 65,000 hours of operations with its first generation of battery-electric equipment.

Innovation and integration unlocking doors for Fluor’s mining and metals business

With mining companies looking to replenish spent resources in many commodities, EPC and EPCM contractors’ pipelines are starting to fill up.

IM Editor Dan Gleeson spoke with Tony Morgan, President, Mining and Metals, Fluor, to find out how the contractor is continuing to win business and differentiate its offering from the rest of its peers.

International Mining: How important is securing early-stage involvement in mining projects in terms of eventually winning the major EPC/EPCM contract?

Tony Morgan: It is very important and there are some good reasons for that. If you get a contractor that is used to building significant projects and can apply the right tools in the earlier phase of the project, you will receive an aligned project in terms of the technology used, execution strategy and the techniques, such as modularisation. All of these plans will be built in at the front-end of the project and, when you go into the execution phase, the personnel executing the project will be well-versed in the strategy.

Quellaveco in Peru (pictured), South Flank in Australia, a bauxite mine in Guinea and Peñasquito in Mexico are good examples of projects where we were engaged in the early stages and helped set the projects up for success.

This isn’t to say that if one contractor starts a project, another contractor cannot come in. We have taken over and succeeded in the execution of several projects in this way. This typically occurs when the client deems that the previous contractor will be unable to perform the project’s execution phase because of the project’s size or the contractor has failed to perform in the current phase.

IM: Has the talk from mining companies of more EPC/EPCM contracts being offered with incentives/penalties that effectively share execution risk become a major trend in the industry?

TM: There’s always been a desire to include penalties and incentives in contracts. The extent to which these can be evenly applied really depends on the market, whether contractors are willing to take them on and then the client’s desire to have control over the project.

The best way to execute a project is to allocate the risk to the party that can best control the risk. If you step away from that principle, it can create inequalities in the contract.

Fluor is willing to take incentives and penalties where we have full control of the project, i.e., where we have been engaged from the start, we understand the project and have control over the execution phases. In a lot of our projects, we do that, especially using our engineering, procurement, fabrication and construction model.

In projects where we don’t have full control, there are other contractor arrangements that can be used successfully. For example, we are carrying out a project at the moment where we have an integrated project management team that combines the best personnel from both our client’s team and our team. On this project, there are significant performance incentives at the end of the project.

IM: How has the proliferation of automation, electrification and digitalisation impacted your work as an EPC/EPCM provider?

TM: It’s fair to say nobody – our clients especially – want mines coming into service in the 2020s and beyond that use the technology of 10 to 15 years ago. Automation, electrification and digitalisation are all critical to the success of these future projects.

At Fluor, we are investing a great deal in developing our automation and digitalisation expertise. We are working with IBM on several efforts around predictive analytics. We also have a section of the company focused purely on innovation. We are bringing innovative and automated solutions to projects, including some active and passive sensing technologies used to help safeguard personnel in the field and track equipment and materials.

One of the solutions we have developed is Safety Pin, which allows us to know where every worker is and to notify workers of areas that are not safe to enter.

Innovation is a differentiator for us as we have been adopting various innovations on a number of projects. We know what works and what doesn’t. Others talk about innovation without having applied innovations to large-scale projects.

IM: Where is Fluor seeing most demand for its services on a regional and commodity basis?

TM: We have projects globally, including bauxite and diamond projects in Africa, iron ore projects in Australia and gold projects in Mexico. Copper projects in South America are extremely active right now. We are executing a number of projects in South America – Quellaveco and Spence being two of the largest – and are also engaged on a number of other ones.

This article is part of a larger Q&A to be featured in the December print issue of International Mining

Caterpillar talks up future battery electric vehicle offering

In the latest edition of its customer magazine Viewpoint, Caterpillar has provided an update on its development programme for battery electric vehicles.

Following a successful proof-of-concept programme that saw a R1300G LHD test unit shipped to a mine in Canada, the company is now looking to move to its product development phase for LHDs and trucks.

While Caterpillar admits it wasn’t the first to look into developing battery electric vehicles underground, it feels its expertise integrating electric drivetrain technology and components in a number of surface machines stands it in good stead to make a big impact on this fast evolving side of the market.

Jay Armburger, Product Manager for Underground Technology, said the company had recently wrapped up its field and operational evaluation as part of its battery electric vehicle development plan, with the results proving beneficial as it moved into its next stage.

“We ran it (the results) through performance analysis, duty cycle testing and all that for both the machine and the charging system. We collected a wealth of data and now the team is analysing it,” he said.

“This is going to be very valuable as we launch our product development phase for LHDs and trucks.”

Armburger says underground electrification will bring with it substantial benefits, not just a reduction of greenhouse gases.

“Mining operations are going deeper and deeper in search of larger reserves and higher-grade ore,” Armburger said. “With that depth comes significant challenges with ventilation and temperature management. It takes a lot of capital investment to put in the infrastructure for ventilation systems and air conditioning systems. Battery electric machines really bring significant cost savings to these customers.”

One customer working with Caterpillar on this solution estimates a $40 million or more saving on capital expenses by reducing the volume requirements of ventilation shafts, he said. “Their vent reduction requirements can be reduced by 40%, and inlet and return shafts can be reduced up to 24%.”

Opex costs could also fall, according to Armburger.

“It’s very expensive to maintain the fans and reduce the heat,” he said. “Heat becomes a big issue underground, and diesel engines create a lot of it. So this is really a way to attack a couple things — emissions and heat — that add to significant costs. From an operation standpoint, customers are looking at $7-$8 million in potential savings annually.”

Caterpillar will bring its surface mining knowledge to this underground task but the underground charging system the company plans to use, based on proven microgrid technology, is something new.

“We don’t want to lose sight of the importance of the charging system. When you’re using energy storage or batteries to power machines, there’s a whole additional programme involved with developing the charging system,” Armburger said.

Caterpillar believes its battery electric vehicles will differ from the existing solutions on the market, in regards to its all-encompassing production focus.

Steve Rich, who now leads all underground sales and support for Caterpillar’s underground mining division, said: “I think it’s pretty clear when we hear the feedback from customers who may have tried other solutions that they’re still not satisfied. They want a true production machine that can go out, survive a whole heavy-duty cycle on the performance side, and live up to their expectations — and they’re still not getting it. They’re quite excited over the Cat solution coming.”

And, the company’s Commercial Mining Manager for Technology, Randy Schoepke, is not concerned about undeground electrification eradicating the automation business case, expecting electrification to be a step toward making machines easier to automate.

In fact, the first battery electric machine to be introduced will be equipped for Command for underground, Cat said. This is the Cat® system for semi-autonomous and remote operation of underground loaders.