Tag Archives: gas

Thiess signs ‘industry first’ dual-fuel agreement with Mine Energy Solutions

Thiess has signed an agreement with Australia-based Mine Energy Solutions that could see the use of locally-sourced gas to displace diesel in large mining trucks using MES’ “currently available and proven” dual-fuel technology.

The agreement to bring lower emission, dual-fuel technology to Thiess’ mining fleet represents a first for a mining services provider in the industry, the company said.

The partnership will commence with the conversion of a fleet of six mining trucks and seek to source gas on site to allow the removal of the equivalent B Double diesel deliveries from local highways, reducing congestion and making it safer for regional families, Thiess said. Longer term, Thiess and MES will seek to expand to full fleet conversion before exploring further opportunities both within Australia and Internationally.

Thiess CEO, Douglas Thompson, said: “Partnerships like this ensure Thiess is playing a role in reducing emissions on our operations and leading the path to decarbonisation of the industry.”

MES’ CEO, Adrian Abbott, added: “We’re proud to partner with Thiess and apply this technology in the Bowen Basin. Our focus is to use locally-sourced gas through the capture and use of fugitive methane contained in the coal resource to enable the average mine site to reduce their greenhouse gas footprint by more than 550,000 t of CO2-e per annum.”

MES’ High Density Compressed Natural Gas (HDCNG®) technology was previously trialled at the New Acland coal mine in Queensland, Australia, with help from New Hope Group and Hastings Deering. This saw a Cat 789C haul truck converted from diesel use to dual-fuel operation using natural gas as the dominant fuel through sequential gas injection.

Red 5 taps Zenith Energy for hybrid power options at King of the Hills gold project

Red 5 Ltd has entered into a Power Purchase Agreement with a subsidiary of Zenith Energy Ltd that will see the growing Australia-based power producer build, own and operate approximately 30 MW of hybrid power generation capacity to service the needs of the King of the Hills (KOTH) project in Western Australia.

The power inputs as part of the BOO agreement comprise high efficiency reciprocating gas fuel power generation together with a 2 MW photovoltaic solar farm (an example from Zenith’s other work shown above) and a battery energy storage system.

Power supply to the site is planned to commence in the March quarter of 2022 with an initial term of 10 years. The contract includes provision for a potential future upgrade to the power station to support increased plant throughput beyond the initial planned 4 Mt/y run rate, Red 5 says.

Gas will be supplied from the Goldfields Gas Pipeline, 12 km west of the mine, under separate contracts, the company clarified.

Red 5 Managing Director, Mark Williams, said the award of the agreement marked another important construction milestone for the King of the Hills project while, at the same time, helping to achieve one of the company’s environmental, social and governance commitments to reduce the carbon footprint of the project.

“We are pleased to have signed the Power Purchase Agreement with Zenith, an experienced power producer which provided us with a compelling hybrid thermal and sustainable power solution that includes renewable energy,” he said. “Zenith’s combination of a gas and solar power station, supported by a battery energy storage system, provides the efficiency and stability required for the processing plant and infrastructure to enable King of the Hills to be a long-life, low-cost gold producer.”

The KOTH project is an open pit and underground gold deposit with a projected mine life of over 16 years. This could see the company produce 176,000 oz/y of gold over the first six years, according to a recent feasibility study.

Alltype Engineering gassed up in Western Australia

WestStar Industrial’s engineering construction contracting business, Alltype Engineering, has been awarded contracts to a total value of circa-A$8 million ($6 million) across multiple clients and projects, including A$5 million of contracts in gas transmission.

APA Group has contracted Alltype to deliver multiple gas offtake and metering facility projects throughout the Midwest region of Western Australia. These turnkey multidiscipline projects involve civil, structural, mechanical, piping, electrical and instrumentation scopes, both workshop and site, with remote area working conditions and logistics and eight off-workshop fabricated gas skids to be completed off site.

Included in the projects are a gas lateral offtake and metering station for the Beyondie sulphate of potash project (pictured), a gas lateral offtake and metering project for the Lakeway SO4 potash project, and gas lateral offtake and metering work for Capricorn Metals’ Karlawinda gold project.

WestStar is also scheduled to build a gas lateral metering station for Primero Group at the Kalium Lakes potash project.

WestStar said: “These newly awarded contracts for Alltype continue to demonstrate its strength and reliability in working successfully with APA and the Australian gas industry, including both upstream and downstream projects.

“Furthermore, having fabricated, assembled and FAT tested over 20 modularised gas skid process packages in the last two years, Alltype continue to leverage off this experience and knowhow to fast track aggressive timeline projects with full supply chain control.”

Alltype has commenced the works for APA Group, which are planned to be completed by the March quarter of 2021.

In addition to this work, Alltype says it was awarded its first contract from Newmont at the Boddington gold mine, also in Western Australia. This contract had an aggressive timeline for completion of urgent fabricated plate and piping componentry for a shutdown, which was achieved. The balance of works is in the process of being completed, it noted.

Still in Western Australia, Alltype says it continues to provide goods and services for the three major iron ore developments in the Pilbara, being BHP South Flank, Rio Tinto Gudai-Darri and FMG’s majority-owned Iron Bridge project.

Technology Metals Australia shores up gas supply for Gabanintha vanadium project

Technology Metals Australia (TMT) says it has entered into a non-binding Memorandum of Understanding (MoU) with APA Group under which TMT and APA have agreed to investigate the provision of gas transportation services along a new gas pipeline to be developed by APA from the south to supply gas to the Gabanintha vanadium project, in Western Australia.

In return, TMT would enter a take or pay tariff over an agreed period linked to the life of the project.

The proposed new pipeline is shorter than the gas pipeline contemplated in the Gabanintha definitive feasibility study (DFS) and is, therefore, expected to deliver material operating cost savings from lower gas transportation charges than those included in the study, the company said.

TMT and APA have agreed to an exclusivity period on negotiation of the gas transportation services for the term of the MoU during which they will negotiate and endeavour to agree the transaction documents.

TMT Managing Director, Ian Prentice, said: “We are very pleased to have entered into this agreement with APA on the development of a proposed new gas pipeline; providing low risk delivery of gas to the project, cost reductions compared to the DFS as well as the opportunity to source gas from the significantly closer emerging Perth basin gas fields.

“APA is a leading Australian energy infrastructure business with 20 years’ experience in building, owning and operating gas pipelines. We will be working together to develop a reliable energy solution for the Gabanintha vanadium project. This represents another key milestone as we progress the development of this lowest cost quartile, large scale, long-life world-class vanadium project.”

The DFS for the Gabanintha vanadium project proposes using natural gas as the heating energy in the roasting kiln and other parts of the process circuit and for electricity generation. The project’s expected maximum and average daily consumption of natural gas is 10.67 Tj and 6.28 Tj, respectively.

The location of proposed new pipeline, which is designed to come from a point to the east of Mt Magnet and extend around 152 km north to the project, is expected to enhance the opportunity for TMT to secure cost competitive gas supply from the rapidly emerging Perth Basin, with potential to further reduce gas transportation charges for the project, the company said.

The Gabanintha DFS outlined an operation with a 16-year-plus mine life, operating at an average vanadium pentoxide production rate of 27.9 MIb/y. This came with a pre-production capital cost of $318 million and operating costs of $4.04/Ib of V2O5.

Newcrest and Chevron Australia sign natural gas agreement

Newcrest Mining has signed a domestic gas sale agreement with Chevron Australia that will see the energy company deliver domestic gas from its portfolio across the Wheatstone (pictured), Gorgon and North West Shelf facilities, in Australia.

Some 16 PJ of equity domestic gas will be delivered over the 3.5-year agreement, which will begin soon and end in July 2023, according to Chevron.

Chevron Australia Managing Director, Al Williams, said: “Chevron is a leading and growing domestic gas supplier to Australia and we’re proud to deliver new natural gas supply to Western Australian industries, businesses and households.”

He added: “As a reliable and cost-effective way to generate electricity, natural gas is a vital energy source for current and future energy needs, powering local jobs, industry and communities.”

At full capacity, the Chevron-operated Gorgon and Wheatstone natural gas facilities will produce 500 TJ/d of domestic gas for the Western Australia market – enough to generate electricity for 4.3 million households, according to the company.

As a key and growing participant in the evolving Western Australian market, Chevron is actively marketing domestic gas under long and shorter-term arrangements.

FMG to lead from the front in Pilbara renewable energy pursuit

Fortescue Metals Group (FMG) has signed an agreement with Alinta Energy that will see up to 100% of daytime stationary energy requirements at its Chichester Hub iron ore operations, in the Pilbara of Western Australia, powered by renewable energy.

The Chichester Solar Gas Hybrid project will see the construction of a 60 MW solar photovoltaic generation facility at the Chichester Hub, comprising Fortescue’s Christmas Creek and Cloudbreak iron ore mining operations.

In addition, an approximately 60-km transmission line linking the Christmas Creek and Cloudbreak mining operations with Alinta Energy’s Newman gas-fired power station and a 35 MW battery facility will be constructed, with completion due mid-2021.

FMG said: “Once completed, up to 100% of daytime stationary energy requirements at the Chichester Hub will be provided by solar generation, with the remaining power requirements to be met through the integrated battery storage and gas power station facilities.”

The project is expected to displace around 100 million litres annually of diesel used in the existing Christmas Creek and Cloudbreak power stations, according to FMG.

Fortescue Chief Executive Officer, Elizabeth Gaines, said: “Reliable and competitive energy generation remains an important consideration for the mining sector in Western Australia and as a significant consumer of energy, we continue to identify opportunities that have the potential to lower our costs while also improving our carbon footprint.

“This landmark project is a first on this scale for the Pilbara and will reduce carbon emissions from stationary generation by around 40% at Fortescue’s Christmas Creek and Cloudbreak mining operations, while driving long-term sustainable cost reductions to maintain Fortescue’s global cost leadership position.”

Gaines added that the agreement with Alinta Energy represented a further step in the creation of Fortescue’s Pilbara Energy Connect project, which builds on the company’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 to develop and commercialise hydrogen technologies.

As part of the agreement, FMG will invest an estimated $250 million in energy transmission infrastructure to complete the integration of Fortescue’s iron ore operations in the Pilbara into an efficient energy network.

Alinta Energy Managing Director and Chief Executive Officer, Jeff Dimery, said: “We’d like to thank Fortescue and our Chichester Hub project partners for helping to make the company’s long-held vision for a cleaner and more connected energy supply for the Pilbara a reality.

“There’s a lot to be proud of in this project. Working together, we are on the cusp of demonstrating that renewables can drive Australia’s economic powerhouses forward–even for remote and complex industrial applications.”

Alinta Energy will receive federal funding of A$24.2 million ($16.5 million) from the Australian Renewable Energy Agency (ARENA) and A$90 million from the Northern Australia Infrastructure Facility (NAIF), upon satisfaction of standard conditions.

The NAIF loan remains subject to ratification from the Western Australian Government.

NAIF Chief Executive Officer, Laurie Walker said: “NAIF’s A$90 million loan for this project will help provide low emission renewable energy generation for large off-grid customers and paves the way towards the creation of a more interconnected regional energy grid in the Pilbara.

“The project innovatively combines solar and gas fired power to compensate for the variability of solar sourced energy. This investment by NAIF offers the opportunity to make a long-term difference to the Pilbara.”

ARENA Chief Executive Officer, Darren Miller, said: “The project could unlock further investment in renewable energy in the mining sector and other remote and energy intensive operations.

“Alinta’s project will demonstrate how renewable energy solutions can deliver critical energy requirements for major mining operations and help reduce emissions. This will also show how interconnection of loads and different generation and storage -including solar, gas and battery storage -can provide secure and reliable electricity.”

Zenith Energy completes Jundee power station expansion for Northern Star

Independent power producer, Zenith Energy has completed and commissioned its 6 MW build own and operate (BOO) power station expansion at Northern Star Resources’ Jundee gold mine, in the northern Goldfields region of Western Australia.

The 6 MW of expansion capacity at Jundee adds to the existing 19.2 MW, increasing Zenith’s BOO capacity to 25.2 MW, Zenith said. The power station comprises an upgrade to the existing facility with the installation of an added 6 MW of Jenbacher 620 Spark Ignittion gas generator technology.

The station incorporates natural gas fuelled generators, which will provide the Jundee mine with highly efficient, cost effective and clean gas fuelled power generation into the future, according to Zenith.

The Jundee processing circuit is a conventional CIL plant with a hard-rock processing capacity of approximately 1.8 Mt/y. The process consists of a single toggle overhead eccentric swing jaw crusher followed by a SAG and ball milling circuit incorporating gravity recovery and CIP process, achieving 92% recoveries. Northern Star produced 285,000 oz of gold at Jundee in its 2018 financial year.

Zenith said: “This project demonstrates the company’s ability to design, construct, install and commission expansion projects to meet our existing customers’ changing power supply requirements.”

The full commissioning of the Jundee expansion delivers a 6 MW uplift in installed BOO MW capacity in the company’s portfolio, and a corresponding uplift in revenue from the September quarter and going forward, Zenith said.

With the completion of the Jundee expansion, Zenith has established a strong track record for project delivery, with its portfolio of 219 MW of contracted BOO capacity and a total of 438 MW of total power generation capacity under control, it said.

Zenith Managing Director, Hamish Moffat, said: “We are proud to continue our partnership with Northern Star Resources at Jundee through the delivery of the Jundee Expansion Project, and now look forward to delivering additional reliable, cost effective power to support the Jundee gold mine.”

MGX and Eureka JV to speed up petrolithium recovery technology developments

MGX Minerals and Eureka Resources say they have entered into a joint venture (JV) agreement that could see the world’s first commercial rapid petrolithium recovery system installed in Pennsylvania, in the US.

The newly formed JV will initially focus on fast tracking deployment of the commercial system at Eureka’s Standing Stone advanced wastewater treatment facility near Towanda. The JV is working to commission the system in the September quarter.

Eureka’s Standing Stone facility (pictured), which originally opened in 2013, provides regional energy producers with advanced wastewater treatment services for raw oil and gas brines. Post-concentration, lithium values in the range of 1,000 parts per million have been reported by Eureka and verified by MGX from produced water from within the Marcellus Shale, the companies said.

MGX says it has developed a rapid lithium extraction technology that eliminates or greatly reduces the physical footprint and investment needed for large, multi-phase, lake-sized, lined evaporation ponds. The technology enhances the quality of lithium extraction and recovery across a complex range of brines as compared with traditional solar evaporation and is applicable to oil and gas produced water, natural brine, lithium-rich mine brine and industrial plant wastewater, it said.

“MGX may use its petrolithium technology for lithium and other valued products production without first establishing mineral reserves supported by an independent technical report or completing a feasibility study,” the company said. “A production decision without the benefit of a technical report independently establishing mineral resources or reserves and any feasibility study demonstrating economic and technical viability creates increased uncertainty and heightens economic and technical risks of failure. Historically, such projects have a much higher risk of economic or technical failure.”

In addition to the initial system installation at Standing Stone, the JV has also outlined a growth strategy that focuses on growing lithium output and deploying additional rapid recovery systems throughout the Marcellus and Utica shale formations, the companies said.

“This includes scaling up lithium output at Standing Stone, deploying additional systems to other Eureka facilities, and identifying new installation sites at third-party treatment facilities.”

Eureka shall retain exclusive rights to develop all JV relationships with third-party facilities within the Marcellus and Utica shall formations for an initial period of five years, as part of the agreement, while both parties will have mutual discretion to further extend the JV for up to four additional years thereafter.

Terms of the JV provide that MGX will initially receive a disproportionate share of gross revenue proceeds until its petrolithium unit capital costs are recovered.

Eureka will obtain and manage all necessary environmental permits related to each system installation as well as day-to-day operational duties. MGX will fabricate and install each system, market the petrolithium, and provide ongoing system maintenance.