Tag Archives: mine power

Verditek makes mining inroads with InterGroup PowerMat solar contract

Clean technology company, Verditek plc, has won its first order from the Australia mining sector, agreeing on a contract to supply its PowerMat solar solution to InterGroup Mining Ltd.

The contract win is in line with Verditek’s stated strategy to target verticals in the oil & gas, marine and mining industries, it said.

Verditek’s PowerMat solution will provide solar power to InterGroup’s exploration operations based in Queensland.

The first order is for 75 kW of solar panels at its exploration camp, but InterGroup anticipates a large increase in its power requirements over the coming 12 months, Verditek says, hoping for further larger orders.

“The lightweight durable solar panels will be used as part of a diesel-solar hybrid system, with the solar panels significantly reducing the consumption of liquid fuel and hence offering financial savings to the operator as well as achieving a key objective for InterGroup, in wanting to make their mining operations as green as possible,” Verditek said.

Verditek’s PowerMat solution can be easily moved to any of the company’s sites, Verditek said. The unit is expected to be shipped to Australia in December 2020, with first-stage payment alreaady received.

Steve White, Managing Director of InterGroup, said: “As we expand our operations significantly, we have been looking for a cost-effective way to adopt green technology that will move us towards our aim of being a leader in ecologically-friendly gold production. Given our projected power demands as we ramp up our mine development, we believe there is scope to increase our take-up for Verditek PowerMat to between 1.5-2 MW over the next 12 months.”

Robert Richards, Verditek CEO, said: “I am extremely pleased that we continue to deliver on the strategy of delivering solar solutions to off-grid installations and converting wet fuel users to dry. This first sale of our mobile power solution to the Australian mining sector, through InterGroup, marks a significant achievement. Although the starting order is relatively modest in size we are confident of the potential for much larger repeat orders. This contract win demonstrates that we are on the right track as we expand our business.”

Ora Banda’s Davyhurst gold mine restart to be powered by LNG

Ora Banda Mining and Wesfarmers’ liquified natural gas business, EVOL LNG, have signed a new long-term agreement to bring LNG to the Davyhurst gold mine in Western Australia’s Goldfields region.

The gold mine is aiming to restart production in January 2021 after being placed into care and maintenance in 2018.

Ora Banda’s definitive feasibility study (DFS) for the Davyhurst Restart project outlined a production target of 418,000 oz of gold over an initial five-year mine life based on an ore reserve of 460,000 oz (6.1 Mt at 2.4 g/t Au) from six deposits within 50 km of the existing 1.2 Mt/y plant. The plant is being refurbished by GR Engineering Services.

EVOL LNG’s Manager, Nick Rea, said the business had proven its winning LNG solution to the mining industry over the past 12 years with its customer base continuing to grow.

“We are excited to support the Davyhurst mine back into production,” he said. “Ora Banda is now our ninth mining customer and we are keen to provide them with the benefits and value that are afforded to EVOL LNG’s customers.”

EVOL LNG will build, own, operate and maintain the on-site LNG storage and vaporisation facility at the mine. The facility will use EVOL LNG’s modular design, which, the company says, allows for fast installation and expandability if the mine’s energy requirements increase in the future.

Ora Banda Mining’s Managing Director & CEO, David Quinlivan, said: “Ora Banda’s agreement with EVOL LNG has enabled the company to secure a stable long-term energy solution for Davyhurst on terms consistent with those outlined in the DFS. The use of LNG as the primary fuel source for the Davyhurst power station also provides significant
environmental benefits.

“The company estimates its power generation greenhouse gas emissions will be reduced by approximately 25,000 t during the initial five years of operation when compared to conventional diesel power generation.”

The mine will use EVOL LNG to fuel a 7.5 MW gas-fired power station, with supply planned to commence from December 2020.

The LNG will be supplied from EVOL LNG’s Kwinana production facility in Western Australia, which was expanded earlier this year. Planning is underway for the next expansion to meet the growing market demand.

thyssenkrupp looks to South Africa’s depleted gold mines for renewable power developments

thyssenkrupp Industrial Solutions (tkIS) has signed a memorandum of understanding with Germany’s Wismut to deliver renewable underground pumped hydroelectric energy storage (RUPHES) projects in depleted gold mines within South Africa.

The agreement builds on extensive work Professor Frank Winde undertook with a consortium including South African and other German research organisations in 2017. Prof Winde was then with the Mine Water Research Group, and now with Wismut in Germany.

tkIS, with Wismut, is now in a position to offer feasibility studies leading to full project execution for cheap reliable renewable energy. As an added benefit the revitalised mine with a RUPHES provides clean water indefinitely in water scarce regions, it said.

With industrial customers in South Africa paying R1.28/kWh ($0.08/kWh) for electricity by April 2021 and reports that of renewable energy tariffs potentially dropping to R0.40/kWh, these projects have an attractive business case, tkIS says.

The company has engaged with independent power producers and is looking to participate in the fifth independent power procurement program in the country, it says.

“Corporate customers have the option to focus on their core business and allow the IPP to invest in the RUPHES self-generation and thereby use this image-enhancing environmentally friendly and sustainable technology,” the company said.

Cat cogeneration system helps JSW power Knurów-Szczygłowice coal mine

Caterpillar Inc says Jastrzębska Spółka Węglowa SA (JSW), the largest producer of high-quality hard coking coal in the European Union, has selected Cat dealer Eneria Poland to supply an integrated cogeneration system at its Knurów-Szczygłowice coal mine in southern Poland.

Commissioned in June, the system uses coal mine methane (CMM) to produce up to 12 MW of power and 12 MW of thermal energy. The electricity is used to supply power for conveyors, compressors, coal processing, mine ventilation systems, and other operations, Cat says. The captured thermal energy is processed through heat exchangers to maintain the proper temperature in the mining workspace.

Designed, installed and commissioned by Eneria Poland, the system is anchored by three Cat CG260-16 generator sets capable of operating on gas from the mine with methane content ranging from 40-70%. Eneria Poland will also provide ongoing support for the system through a three-year customer value agreement, according to Cat.

Andrzej Szymała, Chief Investment Engineer at the Knurów-Szczygłowice mine, said: “Safeguarding the health of our employees and minimising the environmental impact of our operations on neighbouring communities are key pillars of our corporate social responsibility strategy.

“The cogeneration system designed by Eneria Poland for the Knurów-Szczygłowice mine will reduce methane emissions and improve the safety and comfort of our employees’ working environment while providing electricity and heat through innovations that improve our bottom line.”

The cogeneration system at the Knurów-Szczygłowice mine is the latest in a series of initiatives by JSW to improve its environmental footprint. The coal miner is currently building a facility to convert by-products of the coking process into critical industrial materials, including lightweight, durable carbon fibres, carbon adsorbents for purifying liquids and gases, and carbon nanostructures used in lithium-ion batteries and numerous other applications, according to Cat.

JSW employs other equipment supplied by Caterpillar in its operations, including Cat plow systems for longwall mining at its Borynia-Zofiówka and Pniówek mines.

Sven Buehler, Territory Manager for Gas Product Sales at Caterpillar, said: “JSW has made a demonstrated commitment to sustainability that has delivered tremendously positive results for the communities where it operates as well as its employees. The system will support the expansion of JSW’s environmental initiatives and further improve the quality of life for its many stakeholders.”

Caterpillar and its dealer network offer power systems for mines ranging from the largest surface and underground operations down to the smallest quarries, it says. The solutions are engineered to keep operations running reliably and efficiently while protecting the safety of crew members.

BHP Nickel West puts forward renewable hydrogen project for ARENA funding

BHP’s Nickel West division is among seven companies to have been shortlisted and invited to submit a full application for the next stage of the Australian Renewable Energy Agency’s (ARENA) A$70 million ($49 million) hydrogen funding round.

In April, ARENA opened the Renewable Hydrogen Deployment Funding Round to help fast track the development of renewable hydrogen in Australia. The funding round is expected to play a significant role in supporting commercial-scale deployments of renewable hydrogen in Australia and commence the pathway to achieving the Australian Government’s goal of ‘H2 under $2’, ARENA said.

Nickel West is a fully integrated mine-to-market nickel business where all operations (open pit and underground mines, concentrators, a smelter and refinery) are in Western Australia. The integrated business adds value throughout the company’s nickel supply chain, with the majority of Nickel West’s current production sold as powder and briquettes, BHP says.

In addition to BHP Billiton Nickel West Pty Ltd, the other shortlisted applicants are APT Management Services Pty Ltd; ATCO Australia Pty Ltd; Australian Gas Networks Ltd; Engie Renewables Australia Pty Ltd; Macquarie Corporate Holdings Pty Limited; and Woodside Energy Ltd.

The total grant requested across all seven is over A$200 million, with a total project value of almost $500 million, ARENA said.

“All applicants have well developed projects that involve deploying 10 MW or larger electrolysers, made up of various end uses including transport, gas injection, renewable ammonia production, power and industrial use,” it said.

ARENA aims to support two or more of the shortlisted large-scale renewable hydrogen projects, with these projects expected to be among some of the largest electrolysers in the world.

“Each project will need to be powered by renewable electricity, either directly or through a contracting approach,” ARENA explained.

During the initial application stage, ARENA received 36 expressions of interest, totalling more than A$3 billion of renewable hydrogen projects.

ARENA CEO, Darren Miller, said: “We’re excited to be able to invite these seven projects to submit full applications for ARENA funding. Our ultimate goal is to bring the price of renewable hydrogen down to be competitive with other forms of energy and be at the forefront of renewable hydrogen production. The best way to help build a hydrogen industry is to support projects that will help demonstrate the technology at scale, and share the lessons learned to help the industry as a whole reduce risk and costs as well as increase efficiency.”

Applicants invited to the full application stage will have until January 2021 to prepare their application, with ARENA expecting to select the preferred projects by mid-2021.

Successful projects are expected to reach financial close by late 2021 and commence construction in 2022.

All applicants may also be considered for financing from the Clean Energy Finance Corp (CEFC) under the CEFC’s A$300 million Advancing Hydrogen Fund.

ARENA says it has already committed over A$55 million for renewable hydrogen projects including $22.1 million towards R&D projects, as well as feasibility studies into large-scale projects and smaller-scale demonstrations looking at renewable ammonia, power to gas and hydrogen mobility.

Swedish Stirling PWR BLOK technology set for Samancor Chrome operations

Swedish Stirling says it has entered a memorandum of understanding (MoU) with Samancor Chrome that could see up to 135 PWR BLOKs installed at Samancor Chrome’s TC Smelter, Ferrometals and Tubatse Alloys smelters, in South Africa.

On December 13, 2019, Swedish Stirling and Samancor entered into an “energy conversion service agreement” for the installation of a pilot facility with one PWR BLOK unit at Samancor Chrome’s TC Smelter facility.

Today’s MoU is related to discussions on a potential installation of PWR BLOKs at the three operations in Mooinooi, Emalahleni and Burgersfort, respectively.

The agreement comprises a possible installation of up to 45 PWR BLOKs corresponding to 18 MW of power at each smelter, ie in total, up to 135 PWR BLOKs corresponding to 54 MW.

“Details regarding an installation will be communicated when the parties have entered into final binding agreements,” Swedish Stirling said.

The PWR BLOK is a unique proprietary solution that uses Swedish Stirling’s Stirling engines for recovering energy from industrial residual and flare gases and converting them to 100% carbon-neutral electricity at a high rate of efficiency, according to the company.

Samancor is not the only South Africa-based ferroalloy producer Swedish Stirling has signed up to use its PWR BLOK technology. Earlier this year, the company signed a pact with Glencore that will see it install and deliver up to 25 PWR BLOKs, generating 9.9 MW, to the Lydenburg smelter.

Rio, Turquoise Hill and Mongolia government find power solution for Oyu Tolgoi

Rio Tinto, Turquoise Hill Resources and the Government of Mongolia have reached an agreement on the preferred domestic power solution for the Oyu Tolgoi copper-gold mine, in Mongolia, that, Rio says, paves the way for the government to fund and construct a state-owned power plant at Tavan Tolgoi.

The agreement, which is a revision of the Power Source Framework Agreement (PSFA) signed in 2018, states that the parties will work towards finalising a Power Purchase Agreement by the end of March 2021.

In addition, the amended PSFA sets a proposed timetable for development, with construction of the coal-fired power plant set to begin no later than July 1, 2021, and commissioning within four years thereafter.

Oyu Tolgoi is currently sourcing power from China’s Inner Mongolian Western Grid via overhead power lines, via a back-to-back power purchase agreement with National Power Transmission Grid JSC, the power importing entity, and the Inner Mongolian Power Company, according to Turquoise Hill.

Both the Government of Mongolia and Oyu Tolgoi have committed to extending the current arrangement to ensure continued stable power is supplied to the mine and underground project until the state-owned power plant is commissioned and is able to supply stable, reliable and continuous power, Rio said.

Back in February, Rio, which has a majority stake in Turquoise Hill, said it was continuing to progress options to secure domestically-sourced power for Oyu Tolgoi as part of an obligation to source power by June 30, 2023, under the 2009 Investment Agreement between Turquoise Hill (which owns 66% of Oyu Tolgoi), the Government of Mongolia and Rio, and the subsequent PSFA signed in 2018.

Arnaud Soirat, Rio Tinto Copper & Diamonds Chief Executive, said: “This agreement provides a potential pathway to securing a domestic power supply for the Oyu Tolgoi mine and underground project for the benefit of all shareholders and the wider community. We look forward to working with the Government of Mongolia to progress the solution.”

Oyu Tolgoi produced 146,346 t of copper and 241,840 oz of gold in 2019, with mill throughput running at 40.78 Mt for the year.

Santos and Gold Fields agree on new gas deal to supply WA mines

Santos says it has entered into a new gas supply agreement with Gold Fields for its three gold mines in the state.

The company, Western Australia’s biggest domestic gas supplier, will supply nearly 5.5 PJ of natural gas from its Varanus Island gas plant (pictured) over three years, starting on July 1, 2020, as part of the agreement.

In Western Australia, Gold Fields owns and operates the St Ives open-pit/underground mine, the Agnew underground mine and the Granny Smith underground mine. These have throughput capacities of 4.7 Mt/y, 1.3 Mt/y and 3.5 Mt/y, respectively.

The 56 MW Agnew Hybrid Renewable project recently got up and running at Gold Fields’ Agnew mine. This includes five 110 m wind turbines, each with a rotor diameter of 140 m, delivering 18 MW; a 10,710-panel solar farm generating 4 MW; a 13 MW/4 MWh battery system; and an off-grid 21 MW gas/diesel engine power plant.

Santos Managing Director and Chief Executive Officer, Kevin Gallagher, said: “We are delighted Gold Fields has come back to Santos after a short hiatus, reinforcing our position as Western Australia’s biggest supplier of gas to the local market.

“Santos supplies around 40% of the state’s total domestic demand, and we are committed to ongoing investment in developing new gas supplies in Western Australia.

“In these challenging economic times, we are focused on ensuring local gas prices remain competitive for Western Australian businesses over the long term.”

Kibo Energy to help power Baobab’s Tete Steel and Vanadium project

Kibo Energy says it has signed a binding term sheet to supply 200 MW of energy to Baobab Resources’ Tete Steel and Vanadium (TSV) project in Mozambique.

The binding term sheet allows Baobab to exclusively deal and negotiate with Kibo regarding entering into a power purchase agreement (PPA) to supply the energy from its in-development Benga power plant, around 36 km away.

Louis Coetzee, CEO of Kibo, said: “The TSV project represents one of Mozambique’s key development projects that could contribute significantly to the growth of the country. We are therefore delighted that our Benga project will be supporting this growth by providing 100% of TSV project’s circa-200 MW energy requirements, subject to reaching final agreement on an appropriate PPA.”

Coetzee said this PPA was one of several supply agreements the company is targeting for Benga, in line with “our commitment to creating reliable, sustainable and affordable electricity in Mozambique”.

Kibo remains focused on developing Benga with its joint venture partner, Termoeléctrica de Benga SA, which will now comprise a thermal power plant with minimum capacity of 350 MW, as well as planned renewable energy projects.

TSV is being developed to produce 0.5 Mt/y of construction steel and is construction-ready with all licences, concessions, and agreements in place, according to Kibo. “This is recognised as a key development project in Mozambique and is set to be the anchor industry for the Revuboe Industrial Free Zone, Mozambique’s newest and largest industrial zone,” it said.

Northvolt and Vattenfall partner on modular zero-emission power option offering

Northvolt and Vattenfall have announced a new battery energy storage solution that could provide a zero-emission alternative to running diesel generators on remote mine sites.

The Voltpack Mobile System is a rugged, highly modular lithium-ion battery system that can serve as a modular power supply solution to meet energy and power requirements of a wide variety of market scenarios, the companies said.

Prime applications include powering remote electricity grids, reinforcing weak grids, supporting electric vehicle charging and delivering grid services such as balancing power, flexibility, or other ancillary services, they said.

“Designed for redeployment, the system can be deployed for operations lasting days, weeks or even longer periods of time,” the companies said. “This characteristic opens Voltpack Mobile System up to opportunities of leasing and is expected to significantly expand the system’s utility.”

Within the project, Northvolt has led development and production of core technologies, including battery and complementary inverter systems, and the battery management system. Vattenfall, drawing on the company’s experience of delivering commercial grid solutions to market, has supported Voltpack Mobile System project development to tailor the product to match the needs of the market, through both advising on design and functionality, they said.

Emad Zand, President Battery Systems, Northvolt, said the company sees an increased need from the market for flexible solutions, both in terms of use case and location.

“Voltpack Mobile System is designed to give our customers a fleet of assets that can be redeployed, repurposed and connected seamlessly,” he said. “Vattenfall has been an invaluable partner of Northvolt since our earliest days, and their contributions to this project have enabled us to accelerate development of a product built to customer requirements.”

Torbjörn Johansson, Head of Vattenfall Network Solutions Sweden, said: “The need for flexible energy solutions such as energy storage is vital for the transition to the new energy system. Energy storage provides fast access to power when customers need to peak-shave, or the capacity of the grid connection is insufficient.

“The battery storage solution will be offered as part of our concept ‘Power-as-a-service’, which means that we deliver a complete package with ownership of the energy storage and manage it to the specification of the customer. Vattenfall add(s) a long experience of owning and operating different kind of network solutions including energy storage.”

Final validation of the system will be undertaken at Vattenfall’s test and certification centre in Älvkarleby, Sweden.

Vattenfall will be the first to offer the battery unit to the market and has identified the need for sustainable solutions at industries, for microgrids, construction sites as well as for event organisers, the companies said.

Voltpack Mobile System delivers up to 250 kW with a scalable capacity from 245 kWh to 1,225 kWh of available energy, according to the companies.

“The system scales through a central interface hub, which can connect in parallel up to five self-contained Voltpacks, each containing three liquid-cooled, industrial-grade battery Voltpack Cores,” the companies said. “The hub also serves as an interface for applications, and houses inverter and auxiliary systems. If further power or storage capacity is needed, this can be fulfilled simply by connecting multiple Voltpack Mobile Systems in parallel.”

Voltpacks feature high safety standards and are designed and built by Northvolt, the companies said.

“Leveraging field-proven technologies, Voltpack Mobile System is well-suited to operate under even the harshest conditions with a rugged profile and unique design features engineered for transportation and repeated redeployment.”