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CSIRO on a mission to help Australia become a hydrogen power leader

Environmental, Mining services, Power supply for mines, Sustainable mining, , , , ,

A new Hydrogen Industry Mission launched by CSIRO will, Australia’s national science agency says, help support the world’s transition to clean energy, create new jobs and boost the economy.

Hydrogen, when mixed with oxygen, can be used as an emissions-free fuel source to generate electricity, power or heat. But it is expensive to turn into a fuel.

The research mission will help drive down the cost of hydrogen production to under A$2 per kilogram, making the fuel more affordable and helping to position Australia to lead the world in exporting hydrogen by 2030.

Over the next five years, more than 100 projects worth A$68 million ($53 million) have been planned by partners including: Department of Industry, Science, Energy and Resources (DISER), Australian Renewable Energy Agency (ARENA), Fortescue Metals Group, Swinburne University, the Victorian Government, the Future Fuels CRC, National Energy Resources Australia (NERA), and the Australian Hydrogen Council, along with collaborators Toyota and Hyundai. CSIRO and Boeing – research partners for more than 30 years – will also continue to explore hydrogen’s future use in the aviation industry.

CSIRO Chief Executive, Dr Larry Marshall, said the unique mission-based partnership was the key to creating a new industry for the future energy needs of Australia and the world.

“Australia can become a renewable energy leader through the production, use and export of hydrogen, but it will only become a reality if we breakthrough the A$2/kg barrier,” he said. “That needs Australia’s world class science working with CSIRO’s commercialisation expertise turning breakthrough science into real-world solutions.

“Taking a Team Australia approach is essential to creating the 8,000 jobs and A$11 billion a year in GDP that hydrogen can contribute to Australia’s economy as we build back better from the impacts of COVID-19.”

CEO of the Australian Hydrogen Council, Dr Fiona Simon, said the mission came at a critical time for the emerging Australian hydrogen industry.

“We need a coordinated series of investments in industrial-scale research and demonstration activities, along with the supporting research and infrastructure that can bring the technologies that are available and emerging to the industry that needs to deploy them,” she said.

“Focused efforts like the Hydrogen Industry Mission will help realise these goals, and the Hydrogen Council is delighted to be part of it.”

The mission will focus on delivering four key programs of work, some of which have already begun:

  • Hydrogen Knowledge Centre to capture and promote hydrogen projects and industry developments across Australia. The first module, HyResource, was launched in September with NERA, the Future Fuels CRC and The Australian Hydrogen Council;
  • Feasibility and strategy studies to deliver trusted advice to government, industry and the community. This builds on recent hydrogen cost modelling and barrier analysis provided as part of developing the National Hydrogen Strategy;
  • Demonstration projects that validate hydrogen value chains and de-risk enabling technologies. Development is underway at a new facility in Clayton, Victoria, with Swinburne University and the Victorian Government; and
  • Enabling science and technology through investment in breakthrough science, including a A$20 million partnership with Fortescue which focuses on the development and commercialisation of new hydrogen technologies.

CSIRO Hydrogen Industry Mission Lead, Dr Patrick Hartley, said CSIRO was uniquely placed to drive this collaboration.

“The goal of this mission is to support the vision of a clean and competitive hydrogen industry for Australia by delivering research, development and demonstration partnerships which help make Australia’s hydrogen markets a reality,” he said.

“CSIRO’s unique position at the nexus of research, government, and industry gives us the ability to bring together stakeholders, and our track record of partnering and leveraging research funds means that we are able to grow this new phase of the industry without the need for everyone to do it alone.”

Nel and Wood to collaborate on large scale, renewable hydrogen projects

Environmental, Power supply for mines, Sustainable mining, , , , ,

Nel ASA has entered into a framework agreement with the global consulting and engineering company Wood that will see the companies collaborate to develop and execute large scale, complex green renewable hydrogen projects in select regions across the world.

Wood is a leader in consulting and engineering across various industries including mining. Nel, meanwhile, is a global, dedicated hydrogen company, delivering solutions to produce, store, and distribute hydrogen from renewable energy.

Jon André Løkke, CEO of Nel ASA, said: “We are very excited to be entering into this agreement with Wood, who has extensive experience from large, complex projects worldwide. As green hydrogen projects are growing in size and complexity, it is crucial for our success to have strong partners to strengthen our project management – and execution capabilities. This is a long-term commitment, and we look forward to working together to further strengthen our competitiveness through leveraging our experience and competence.”

Nel Hydrogen Electrolyser AS, a subsidiary of Nel ASA, is delivering a 3.5 MW electrolyser to ENGIE as part of a project to deliver the world’s largest fuel cell haul truck for Anglo American.

Craig Shanaghey, Wood’s President of Operations for Europe, Middle East and Africa, said: “We are excited about the opportunity to support NEL Hydrogen as they play their part in the green hydrogen revolution, and as we unite on our commitment to create a more sustainable and cleaner energy future. We look forward to leveraging our global engineering and project implementation capabilities to support our client on their delivery of impactful solutions around the world.”

The process of phasing in Wood on ongoing projects is underway, Nel said.

Wiluna Mining lays renewable energy groundwork with Contract Power extension

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Wiluna Mining Corp has signed a 10-year contract extension with Contract Power Group that will see the power provider charge up the Wiluna Mining Operation in Western Australia until at least 2031.

The contract is geared towards meeting the forward needs of the Stage 1 development project at Wiluna, to provide a total rated power output of the power station of 14.1 MW. It will also re-configure the power station to increase gas generation and add a 2 MW battery energy storage unit to significantly reduce the need for back-up diesel generation, with four diesel generators being removed.

The new pact will also allow amortisation of costs over a longer period, therefore reducing Wiluna’s overall operating power charges; the company said.

And, when it comes to the Stage 2 development expansion project in 2023 at Wiluna, the contract will provide a solid base for a future mixed renewables power station, the company said.

Back in October, Wiluna Mining’s board gave the thumbs up to the Stage 1 development, which will see the company transition from its current production profile of producing 62,000 oz/y from mining free milling ore through the current 2.1 Mt/y carbon-in-leach processing facility, to initially producing 100,000-120,000 oz/y of gold and gold in concentrate. This will be implemented using the current, recently refurbished crushing circuit, the previously expanded mill circuit and a new 750,000 t/y concentrator by October 2021, the company said.

Wiluna then intends to increase production of gold and gold in concentrate by, at a minimum, doubling the mining rate and the concentrator to produce circa-250,000 oz/y by the end of 2023/early 2024 as part of Stage 2.

Contract Power, a subsidiary of Pacific Energy, has provided Wiluna’s power – a mix of natural gas and diesel power backup – since June 2016.

“Contract Power Group are experts in efficient generation of electrical power and in decarbonisation by harnessing off-grid wind or solar power,” Wiluna said. “Wiluna are refining its plans with Contract Power Group to include decarbonisation within our methods of power generation at site. This may also moderate our exposure to future volatility in the cost of hydrocarbon fuels.”

Wiluna will now focus on renewable power studies and options during 2021 and 2022 to:

  • Assess the right mix of renewables including solar, wind or pumped storage options;
  • Determine how best to integrate renewables into the total power delivery for an expanded operation; and
  • Optimise the decarbonisation of power generation with reliability and cost effectiveness.

Milan Jerkovic, Wiluna Mining’s Executive Chair, said: “We look forward to working with Contract Power to not only transitioning the Wiluna Mine once again into one of Australia’s biggest and most profitable gold mines, but to helping it become one of Australia’s cleanest mines.”

Trevali taps EMESCO for solar power contract at Rosh Pinah mine

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Trevali Mining has entered into a 15-year renewable Power Purchase Agreement with Emerging Markets Energy Services Company (EMESCO) for the supply of solar power to its Rosh Pinah zinc-lead-silver mine in Namibia.

Trevali has committed to achieving an overall greenhouse gas emission reduction target of 25% by 2025 from its 2018 baseline, with the PPA anticipated to deliver 30% of Rosh Pinah’s power requirements during the life of the agreement and reduce GHG emissions at the company level by 6%.

EMESCO will be responsible for the design, permitting, financing and implementation of a solar energy system on a neighbouring property at no cost to Trevali. EMESCO will then sell the power generated to Trevali at a fixed rate that is expected to reduce energy costs by 18% over the 15-year term of the agreement.

EMESCO was chosen based on a variety of factors, including expertise in the field of renewable energy, an understanding of the scope of work required, the ability to execute and deliver on Trevali’s requirements, and pricing, the miner said.

If Trevali makes a positive investment decision on the RP2.0 expansion project, which could see output rise to 3,600 t/d from 2,000 t/d, EMESCO will increase the delivery of power to Rosh Pinah to remain at 30% of the mine’s annual energy consumption as regulated by the Modified Single Buyer framework in Namibia, it added.

Ricus Grimbeek, President & CEO, said: “Our sustainability program commits to significant reductions in GHG emissions, and with the signing of this agreement with EMESCO we have taken a major step towards delivering on our commitment by securing renewable energy while also reducing our expected energy costs.

“The agreement with EMESCO has been designed to scale with the output of the mine so that when we are ready to make the decision to build the RP2.0 Expansion project, the delivery of power will increase to match our requirements.

“We are extremely excited by this partnership at Rosh Pinah and continue to study ways to reduce Trevali’s GHG emissions and deliver on this and our other sustainability targets.”

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

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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.

Private equity firms look to take over Aggreko

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The boards of directors of Aggreko plc and Albion Acquisitions Ltd have reached agreement on the terms and conditions of a recommended all-cash acquisition from I Squared Capital and TDR Capital for the mobile power provider.

The £8.80/share offer values Aggreko at £2.32 billion ($3.2 billion).

Earlier this week, Aggreko announced an underlying profit before tax of £102 million for 2020, slightly ahead of its initial guidance of £80-100 million, and group revenue of £693 million for 2020, down from £823 million in 2019. The company stated that 7% of this revenue came from the mining sector.

Aggreko said its directors intended to recommend unanimously that Aggreko shareholders vote in favour of the proposed scheme at a court meeting and general meeting. The acquisition is expected to become effective in summer of 2021 (in the Northern Hemisphere).

Ken Hanna, the Chairman of Aggreko, said: “The Aggreko Board believes that the offer from I Squared Capital and TDR Capital represents an attractive price in cash that fairly recognises Aggreko’s future prospects. We believe that the business, its people and customers will continue to be well supported with I Squared Capital and TDR Capital as shareholders bringing their expertise in energy and rental markets to support our existing strategy.”

Adil Rahmathulla of I Squared Capital added: “Aggreko is a global market leader in delivering bespoke temporary power solutions to its customers and has clearly shown it has a strategy to complete its journey towards a net-zero emission business. The urgency to deliver on that transition has only increased in the post-COVID environment.

“Repositioning Aggreko fast enough to truly capitalise on these trends and rapidly shifting customer demand requires significant investment in clean technology and a step change in the pace of transformation. We are well positioned to accelerate Aggreko’s development at this critical juncture and secure a successful future for the company, underpinned by a long-term investment focus and the combined expertise of TDR Capital and I Squared Capital in the power infrastructure and equipment rental sectors.”

Aggreko to energise mine power space with investment proposition

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Mobile power provider Aggreko says it is making the transition from being a pure power provider to a long-term mining project investor that is helping miners navigate the energy transition.

Aggreko has built an almost 60-year-long reputation for powering many sectors around the globe. It has also supplied power and underground cooling to the mining sector for more than 35 years and has evolved into life-of-mine contracts and renewables.

In its latest report – which details its future energy transition – Aggreko cites mining as a major growth sector. Aggreko Australia Pacific Managing Director, George Whyte, stated that Aggreko’s global team’s unique offering is with build-own-operate investments across all continents.

As well as continuing to invest upward of £250 million ($347 million) annually in technology and innovation, the company says it is ready to further boost its investments in the natural resources industry.

Whyte said: “Investor partnerships can support the rapid changes in technology and emissions compliance that our mining customers are facing. Investing millions of dollars in capital for a mine’s power plant is a risk for any company, and, as a partner, Aggreko takes on this risk instead of the mining company. It is a smart way for miners to do business in the post-COVID and renewables era.”

Aggreko’s Global Head of Mining, Rod Saffy, said miners struggling to get funding for capital expenditure projects were looking to outsource, and there was a trend toward creating partnerships with providers.

“Partnerships provide more value beyond de-risking project finances,” Saffy said. “There are technology and emissions risks, so by partnering with us, for example, we aren’t just supplying equipment and labour, we share in decision making and project milestones, we invest and update technology on-site and navigate social and environmental impacts together.”
Saffy said companies looking to build power stations for the first time particularly benefited from supportive partnerships with Aggreko.

“Power stations are our core business, and they have become much more complex on mine sites than they have been in the past,” he said. “It is challenging to get funding to build power stations, and miners are needing support to integrate renewables into their plans immediately or in the future, or needing solutions designed from scratch.

“Partnering with us is a sustainable and beneficial business solution. Miners are wanting hybrid power stations that might utilise a mix of energy sources such as diesel, gas, solar or battery, for example. They also want that power to be scaled up or down and upgraded as their needs change and new technology comes online.”

Saffy said mines throughout the world were becoming less dependent on mass-scale thermal plants to deliver baseload power through national grids.

“With the cost of renewable power generation falling, there is also growth in localised microgrids, which means less dependence or complete independence from the grid,” he said. “Miners in Australia, Africa and South America, where there is less infrastructure in remote locations, are finding it particularly helpful to partner with us from the start of a major project.”

One such example is the Gold Fields Salares Norte Mine in northern Chile where Aggreko has become a major investor, and partner for the mining project for at least 10 years. The mine is located 190 km from the nearest town and is 4,500 m above sea level, and Aggreko is creating an off-grid hybrid power solution, comprising of diesel and solar for the harsh environmental conditions. Aggreko estimates the mine will experience $7.4 million in cost energy savings across the 10 years.

Saffy said the benefits for Aggreko in partnering and investing with miners from the beginning of their project to the end of the life of mine was beneficial for both parties.

“As a partner, Aggreko de-risks the threat of future innovation and technology for miners,” he said. “Our build, own, operate and maintain model frees up working capital without increasing the debt ratio for mining projects. Modular equipment also gives miners the ability to leverage innovation at low risk and not be concerned about having the latest equipment.

“We benefit too, by showcasing our expertise and innovations throughout a project’s lifecycle and support mining companies to reduce emissions and increase their operational efficiencies.”

Late last year, Aggreko committed to achieving net zero emissions by 2050.

Gold Fields wins NERSA approval for South Deep solar power plant

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Gold Fields says it has received the electricity generation licence approval from the National Energy Regulator of South Africa (NERSA) for the construction of a 40 MW solar power plant at its South Deep gold mine in the country.

The acting CEO of NERSA now has to authorise the licence, a decision that should be forthcoming over the next two weeks, the miner said. All the regulatory approvals to proceed with the project will then be in place.

Gold Fields will update its definitive costings and finalise all the required internal processes to commence the project as soon as possible. The company has stated previously that the solar plant has the potential to provide around 20% of South Deep’s average electricity consumption.

Nick Holland, Gold Fields CEO, said: “The solar power plant will increase the reliability and affordability of power supply to South Deep, ultimately enhancing the long-term sustainability of the mine.

“The approval of this licence sends a strong, positive message to mining companies and their investors, potentially leading to decisions being taken to sustain and grow mining operations in the country, especially in deep-level, underground, marginal mines. Enabling companies to generate their own power also gives Eskom room to address operational issues at its power plants.”

Gold Fields says its energy objectives are based on four pillars – energy must be reliable, available, cost-effective and clean – which promote a shift to self-generation using renewable energy sources. “We are fully committed to making our contribution towards net-zero emissions,” Holland says.

During 2020, Gold Fields successfully implemented solar and wind power plants, backed by battery storage, at two of its Australian mines, Agnew and Granny Smith, and committed to renewables at its other Australian mines, Gruyere and St Ives, as well as the Salares Norte project in Chile when it starts operations in 2023. All its other mines are also reviewing renewable energy options.

Since full commissioning of the Agnew microgrid, renewable electricity averages over 55% of total supply at the mine.

During 2020, renewable electricity averaged 8% for the Australia region and 3% of total group electricity, Gold Fields said. Once the South Deep project is commissioned, renewable’s contribution to the group total will rise to around 11%.

Holland concluded: “We expect our investment in renewable and low-carbon energy sources to contribute significantly to our carbon emission reductions over the next few years. Power from the South Deep solar plant will partially replace coal-fired electricity from Eskom, enabling us to significantly reduce our Scope 2 carbon emissions.”

Galena signs up Contract Power for hybrid power gen facility at Abra JV

Base metals, Environmental, Mineral project development, Mining services, Power supply for mines, Precious metals, Sustainable mining, , , , , , , , , , , ,

Abra Mining Pty Ltd, the joint venture company behind the Abra base metals project, has executed a power purchase agreement (PPA) with Contract Power Australia that could see the construction and operation of a hybrid power generation facility made up of a natural gas and solar energy array at the Western Australia project.

Announcing the PPA, Galena Mining, which owns 77.28% of the project, said Contract Power will build, own and operate an integrated hybrid power generation facility combining a 10 MW natural gas fired power station, a 6 MW solar array, 2 MW of battery energy storage and a 900 Kl LNG storage and regasification facility.

Power will be purchased by Abra under the PPA for an initial term of 16-years (extendable), it said.

Galena Managing Director, Alex Molyneux, said: “We’re pleased to partner with Contract Power on a clean, cost-effective power solution for Abra. Integrating solar with relatively clean natural gas instead of diesel achieves a marked reduction in Abra’s carbon footprint compared to alternatives considered in the tender process.

“Pleasingly, the design also offered the most cost-effective solution, in line with our feasibility study estimates.”

This definitive feasibility study outlined development of a mine and processing facility with a 16-year life producing a high-value, high-grade lead-silver concentrate containing around 95,000 t/y of lead and 805,000 oz/y of silver after ramp-up.

A Western Australia-based company wholly-owned by Pacific Energy Ltd, Contract Power specialises in the design, construction and operation of remote power stations for the mining and government sectors.

Contract Power has operated power stations around Australia under turnkey build-own-operate arrangements since 1999, and recent projects include a 56 MW gas fired power station for Mineral Resources Ltd’s Wodgina lithium project, a 18 MW gas fired station for Capricorn Resources’ Karlawinda project and a 18 MW gas and diesel power station at Wiluna Mining Corp‘s Wiluna gold project.

Contract Power’s Managing Director, Leon Hodges, said: “We are very pleased to be working with Galena on this important project and look forward to rewarding their confidence by delivering a world-class hybrid power station.

“Contract Power’s combined LNG and renewables integration capability has allowed our design team to maximise solar penetration as high as the economics and technology allows, providing the Abra project with the highest reliability and lowest cost of power on an unsubsidised basis.”

The PPA remains subject to the condition of Abra Mining Pty Ltd proceeding to final investment decision for the project, Galena said.

Aggreko commits to ‘net zero’ targets, supporting customers through energy transition

Environmental, Mining services, Power supply for mines, Sustainable mining, , , , , ,

Aggreko has announced its ambition to be “net zero” by 2050 or sooner, aligning with the Paris Agreement to limit global warming to 1.5°C.

The company, which has delivered many off-grid power solutions to the mining sector, a number of which have renewable energy inputs, has also committed to offering cleaner technologies and fuels to support its customers through their energy transition – using flexible and competitive energy solutions to meet their environmental sustainability targets.

By 2030, Aggreko says it will:

  • Reduce the amount of fossil diesel fuel used in customer solutions by at least 50% by offering customers cleaner technologies and fuels that guarantee the same or better level of reliability and competitiveness;
  • Reduce local air quality emissions of their solutions also by 50% (all emissions from diesel, gas and other fuels); and
  • Achieve net zero across all its own business operations.

By 2050 or sooner, it says it will also be a “net zero” business across all the services it provides.

The company explained: “For a number of years, Aggreko has been making progress in providing cleaner solutions for customers around the world, such as turning waste gas into power or by incorporating battery storage, solar, and more efficient and near zero local emissions generators. Aggreko is pioneering by partnering with many leading organisations across industry sectors that aim to be net zero or close to net zero within the next decade, supporting them in navigating the complexity and the cost challenges they face in achieving their own commitments.”

To achieve its 2030 and 2050 ambitions, Aggreko plans to accelerate investment in lower-carbon technologies and will continue to shift its global generator fleet towards more gas and greener drop-in liquid fuels. It will also invest in other clean energy alternatives such as e-fuels, hydrogen-ready engines and fuel cells, in preparation for rapid exploitation as the technology becomes available at scale, while also closely monitoring and investigating future technologies, the company said.

Aggreko is to accelerate its offering of more efficient solutions notably through temperature control, energy recovery, co- or tri-generation, it said. Simultaneously, it will continue to grow its portfolio of mobile and modular solar power and battery storage assets, which, when combined with its generator fleet, helps customers to successfully reduce their carbon emissions and costs.

“Aggreko will continue to enhance the use of connected systems, remote monitoring and data analytics to increase efficiency and track performance against its own and its customers’ emissions reduction targets,” the company said.

Chris Weston, CEO of Aggreko, said: “The energy transition is fundamentally changing the way power is generated and delivered. Our customers’ needs are evolving – they require cleaner solutions but without compromising reliability, modularity or cost efficiency. We’ve already begun transforming our fleet and solutions to meet changing customer needs and to achieve our objective to become a net zero company.”

He added: “Our customers are looking to reduce their carbon and air quality emissions and we are the perfect partner to support them in their journey. With our expertise in hybrid solutions and efficient thermal generation, we are already supporting them across the world through the energy transition.”

He concluded: “Our industry-leading net zero commitments are ambitious but achievable and put us on the path to reduce both our own environmental footprint and that of our customers as we look ahead to a greener future.”