Tag Archives: hydro

Centamin’s Sukari solar power plant performing ahead of expectations

Centamin says the solar plant at its Sukari gold mine, in Egypt, has entered the final stages of commissioning and is delivering savings ahead of expectations.

Furthermore, it says continued progress has been made to assess the opportunity to use Egyptian grid power at Sukari.

The solar plant, which is made up of a 36 MW solar farm and 7.5 MW batteryenergy storage system, has been consistently delivering 36 MW DC, converting to 30 MW AC of power, since early September, the company said. This reduction in exposure to volatile fuel pricing with commissioning is saving the company up to 70,000 litres per day of diesel and averaging a reduction in diesel consumption of 22 million litres per year, according to Centamin.

Based on current diesel prices, this means the plant has the potential to provide annual cost savings of $20 million, alongside an expected reduction in Scope 1 greenhouse gas (GHG) emissions of 60,000 t/y CO2 equivalent and a subsequent reduction in volume of diesel trucked to site.

Full commissioning of the solar plant is expected this quarter, the company added.

Centamin previously awarded the engineering, procurement and construction contracts for the 36 MW solar farm and 7.5 MW batteryenergy storage system at Sukari to juwi AG and Giza Systems. juwi was contracted to design, supply and integrate the Sukari solar and battery plant into the current diesel power plant, while Giza Systems was contracted to install the Sukari solar plant. To maximise the total energy generation, the project is using bifacial solar photovoltaic modules and single axis tracking. juwi Hybrid IQ microgrid technology will enable the integration of the solar and battery system into the existing offgrid network and support the operation of the existing power station, according to the company.

On top of the solar plant news, Centamin revealed it is actively engaged with government and independent power providers to further reduce its reliance on diesel at Sukari. Its initial proposals to supply 3050 MW AC of grid power to Sukari have been received and an internal evaluation is underway for potential integration from 2024, it said.

Fifty megawatts of AC grid power supply creates the potential to fully displace the use of diesel for power generation at Sukari, Centamin said. The minimum 30 MW AC of grid power, combined with the existing 30 MW AC of solar power, creates the potential to operate during daylight hours without using any diesel power generation and substantially offsetting diesel consumption during night time hours, it said.

The Egyptian grid power is generated from natural gas and a mix of renewables, such as hydro, solar and wind, creating the opportunity to further reduce Sukari’s GHG emissions. Further, the Egyptian industrial grid tariffs are significantly cheaper than the cost of power
generation using diesel fuel, Centamin said.

Martin Horgan, CEO of Centamin, said: “Delivery of this critical project is instrumental to our ongoing commitment to reduce our reliance on diesel fuel, minimise greenhouse gas emissions and realising material cost savings. The solar plant and potential to integrate grid power will contribute materially to our environmental stewardship philosophy and our strategic objective of maximising returns for all stakeholders.

BHP builds its ‘green’ copper credentials at Escondida, Spence

BHP says new renewable energy contracts it has recently signed in Chile will reduce energy prices for its Escondida and Spence copper mines by around 20% and help displace up to 3 Mt/y of CO2 emissions from these operations.

These agreements not only benefit BHP’s business but generate strong environmental and social value, according to Daniel Malchuk, President Operations for BHP’s Minerals Americas business.

BHP operates and own 57.5% of the Escondida mine, a leading producer of copper concentrate and cathodes from a copper porphyry deposit, in the Atacama Desert in northern Chile. Spence, which is 100% owned by BHP, is also in northern Chile.

He said: “Population growth and higher living standards combined with greater electrification are expected to push up demand for copper. This means that copper in products such as electric cars and renewable energy infrastructure, which are vital to the world’s sustainable growth, must be produced to the highest environmental aspirations.”

The new energy contracts, along with BHP’s investment in desalinated water in Chile, demonstrate social value in action and help drive the wider agenda for sustainable green copper, according to Malchuk.

Social value is one strategic pillar the company embeds in all its decision-making and informs the way in which it provides resources and generates long-term, sustainable value. This was the subject of BHP Chief External Affairs Officer, Geoff Healy’s speech in London earlier this month.

Malchuk said the company has negotiated four new power contracts that will meet its energy requirements at Escondida and Spence from 100% renewable energy sources by the mid-2020s.

“When fully operational, these renewable supply arrangements will eliminate virtually all of Escondida and Spence Scope 2 emissions (emissions from purchased energy), effectively displacing up to 3 Mt of CO2 annually compared to the fossil fuel contracts they replace,” he said. “This is the equivalent to annual emissions from about 700,000 combustion engine cars and accounts for around 70% of BHP’s Minerals Americas total greenhouse gas emissions.”

These actions also support Chile’s wider “Energia 2025” power policy target for 20% of all Chilean energy to come from renewable sources by 2025.

Following a competitive tender process, Escondida and Spence agreed separate 15-year contracts for 3 TWh/y and 10-year contracts for 3 TWh/year with ENEL Generación Chile and Colbún respectively. The ENEL contracts will begin in August 2021 and the Colbún contracts in January 2022, BHP said, with power supplied from solar, wind and hydro sources.

Malchuk said: “These contracts are practical examples of our commitment to social value that are linked to a sound business case. We estimate the agreements will reduce energy prices at our Escondida and Spence copper mine operations by around 20%, provide our operations flexibility and security of supply, and strengthen our ability to deliver sustainable copper across our supply chain.”

On top of this, the company has confirmed that its Spence operations will begin using desalinated water as the main source of supply from mid-2020 upon completion of a 1,000 l/s capacity desalination plant. This was part of a plan the company outlined in 2017 to grow the Spence operation.

This is on top of the more than $4 billion, 2,500-l/s desalination plant the company built at Escondida.

Malchuk said: “Water is a precious commodity that is critical to our operations in Chile and to the communities where we operate in the Atacama Desert, one of the driest regions in the world. We recognise our operations have an impact on the environment given the immense amount of water they consume.”

He added: “Our Water Stewardship position statement, launched last month, outlines our vision for a water secure world by 2030. It sets out our actions to improve water management within our operations and contribute to more effective water governance beyond the mine gate.

“We strongly support the UN Sustainable Development Goals on access to clean and affordable water. That’s why we will set public targets and engage industry, communities and governments to improve governance, transparency and collaboration in water management.”