Tag Archives: gas power

Solar and gas power to energise Gruyere gold mine expansion

Environmental, Mine operation news, Mining services, Power supply for mines, Precious metals, Sustainable mining, , , , , , , , ,

APA Group has been contracted to expand the power generation capability of the Gruyere gold project, in Western Australia, as part of a contract that will include the addition of a renewable energy hybrid microgrid, solar power and battery energy storage system.

This news came within Gold Road Resources Limited’s and Gruyere Mining Company’s report on power expansion initiatives at Gruyere, a 50:50 joint venture between Gold Road and Gold Fields, around 200 km east of Laverton.

APA has been contracted to install an additional 4 MW reciprocating gas-fired engine by mid-2021 (Phase 1) and build, own and operate a 13 MWp solar farm and 4.4 MW battery-energy storage system by the end of 2021 (Phase 2) under the existing Electricity Supply Agreement (ESA) that runs until November 2033.

The cost of the Phase 1 and Phase 2 expansion will be amortised over the term of the ESA and is forecast at A$32-38 million ($24-28 million). Phase 1 and Phase 2 will increase the installed power capacity at Gruyere to 64 MW.

The benefits of the sustainable power expansion at Gruyere include:

  • Reduction of carbon emissions by an estimated 16,000 t/y CO2-e;
  • Anticipated 5% power supply unit cost saving (MWh), at current gas market prices;
  • Ameliorating gas power generation capacity constraints, including the derating of gas engine performance at high ambient temperatures;
  • Enable increased plant throughput up to the target of 10 Mt/y;

Gold Road Managing Director and CEO, Duncan Gibbs, said: “Gold Road is proud to be part of this green energy initiative. We have long stated our intention to be an ESG leader, and this initiative follows on from the recent commissioning of a solar and battery power solution at our Yamarna exploration facility.

“The power expansion at Gruyere provides an elegant technical solution that reduces greenhouse gas emissions, decreases costs and enables an increase in plant capacity up to a targeted 10 Mt/y from the current nameplate design of 8.2 Mt/y. This will not only see increased annual cash flow generation for the business, but it will help drive additional unit cost reductions as Gruyere is further defined as a Tier One, low cost and long-life gold producer.”

Gold Fields Executive Vice President, Stuart Mathews, said: “The installation of renewables as part of our total power solution at Gruyere reflects Gold Fields’ strategic objective to strengthen energy security, optimise energy costs and reduce our carbon footprint through the adoption of innovative new technologies. The success of the recently completed renewable energy projects at our Agnew and Granny Smith mines has given Gold Fields the confidence to ramp up use of these technologies across our global operations.”

Fortescue continues to invest in power options for Iron Bridge development

Environmental, Mineral project development, Power supply for mines, Steel and iron ore, , , , , , , , ,

Fortescue Metals Group is to invest $450 million as part of a program that will see hybrid solar gas energy delivered to the under-construction Iron Bridge magnetite project in the Pilbara of Western Australia.

The Pilbara Generation project – as it is called – is the next stage of its Pilbara Energy Connect program, the company said. This complements the $250 million Pilbara Transmission project, announced in October 2019, and will provide low cost power to the energy efficient Iron Bridge project.

The $2.6 billion Iron Bridge Magnetite project is expected to deliver 22 Mt/y of high-grade 67% Fe concentrate production by mid-2022.

The Pilbara Transmission project consists of 275 km of high voltage transmission lines connecting Fortescue’s mine sites, while the Pilbara Generation project will include 150 MW of gas-fired generation, together with 150 MW of solar photovoltaic generation. This will be supplemented by large scale battery storage and will be constructed, owned and operated by Fortescue, the company said.

Together, the transmission and generation projects, totalling $700 million of investment, form the Pilbara Energy Connect program of works providing Fortescue with a hybrid solar gas energy solution that will enable low cost power to be delivered to Iron Bridge. “This allows Fortescue to leverage its existing energy infrastructure including the Fortescue River Gas Pipeline and generation capacity at the Solomon power station and support the incorporation of large scale renewable energy,” the company said.

The Pilbara Energy Connect project builds on the Chichester Solar Gas Hybrid project which was announced last year. This landmark agreement with Alinta Energy will see up to 100% of daytime stationary energy requirements of the Chichester Hub iron ore operations powered by renewable energy.

Alinta will build, own and operate the 60 MW solar PV generation facility at the Chichester Hub and 60 km transmission line linking the Christmas Creek and Cloudbreak mining operations with Alinta Energy’s Newman gas-fired power station. On completion, this will integrate with the Pilbara Energy Connect program, via the Pilbara Transmission project.

Chief Executive Officer, Elizabeth Gaines, said: “Mining is a 24/7 operation and efficient, reliable, competitive energy generation remains an important consideration for the mining sector in Western Australia. The lack of an integrated transmission network in the Pilbara has been a key barrier to entry for large scale renewables and Fortescue’s investment will address this issue.

“Fortescue’s commitment of $700million in electricity generation and transmission infrastructure will complete the integration of Fortescue’s stationary energy requirements in the Pilbara into an efficient network, while lowering the overall cost of electricity to existing and future sites.

“By installing 150 MW of solar PV as part of the Pilbara Generation project, the modelling indicates we will avoid up to 285,000 t of CO2/y in emissions, as compared to generating electricity solely from gas.

“Importantly, Pilbara Energy Connect allows for large scale renewable generation such as solar or wind to be connected at any point on the integrated network, positioning Fortescue to readily increase our use of renewable energy in the future.”

Pilbara Energy Connect builds on Fortescue’s previous energy initiatives, including the construction of the Fortescue River Gas Pipeline, the conversion of the Solomon Power Station from diesel to gas generation, as well as a partnership agreement with the Commonwealth Scientific and Industrial Research Organisation (CSIRO) to develop and commercialise hydrogen technology.