Tag Archives: Northvolt

Epiroc surprises with positive Q3 financials and automation, electrification advances

Automation, Environmental, Equipment maintenance, IoT, Mining equipment, Mining finance, Mining maintenance, Mining safety, Mining services, Power supply for mines, Sustainable mining, , , , , , , , , , , , , , , ,

It is fair to say Epiroc’s September quarter results surprised on the upside.

Amid the COVID-19 pandemic, orders received held up, dropping just 2% to SEK9.37 billion ($1.07 billion) compared with orders in the September quarter of 2019. In fact, on an “organic basis”, orders received were up 10% year-on-year.

At the same time, operating profit remained stable, only decreasing by a little over 5% year-on-year to SEK1.82 billion.

The Epiroc management team took the view that this performance was no exception, issuing a plan to propose a second dividend of SEK1.20/share at the Extraordinary General Meeting on November 27.

Investors viewed these numbers positively: its Stockholm-listed shares closed 8% higher.

While the revenue numbers were dominated by the company’s aftermarket business, which generated 69% of the SEK8.7 billion, it was on the equipment side where some very interesting developments were observed.

The company recorded a 25% year-on-year organic increase in equipment orders in the period, reinforced by a few large orders such as those from Norilsk Nickel. The majority of orders were small- to medium-sized contracts of, say, one or two pieces of equipment, according to Helena Hedblom, President and CEO.

“More customers have taken the decision to invest,” she told IM, adding that this development followed two quarters where mining companies were hesitant to commit.

Within these new orders were several automation agreements, the company said, alongside new battery-electric equipment and digital bookings.

Epiroc has continually committed to advancing technology related to digitalisation, automation and electrification, and it appears the fallout from COVID-19 and the sector’s sustainability drive are strengthening demand for these products.

“I see clearly the interest and demand for automation and tele-remote solutions is increasing in light of the pandemic,” Hedblom said of how COVID-19 had impacted the company’s product focus.

“The key to success for us is we have built up these regional application centres that have given us the capability to deploy automation and teleremote systems without international travel.”

Still on the topic of automation, Epiroc revealed even more today.

The first snippet of news, which Hedblom snuck in during the webcast, was that the company had secured an order for an autonomous fleet of surface drill rigs from an unnamed customer in southern Africa.

The second, which she teed up in the official results release, built on in the webcast, and expanded on for IM, was the successful deployment of “unique solutions” for OEM-mixed fleet automation.

In surface mining, the company, in tandem with ASI Mining, has retrofitted automation on Caterpillar haul trucks running at Ferrexpo’s Yeristovo iron ore mine, in Ukraine. The market had already been told about this.

Solutions for OEM-mixed fleet automation underground was very much representative of ‘news’.

“For underground, we have deployed very advance traffic management solutions for mixed fleet automation where we have automated our loaders and then machines from another OEM,” she said. “That is a breakthrough.”

While Hedblom was not able to say too much more about the project, she did acknowledge the solution was a few years in the making and had been advanced with an existing customer.

“The traffic management solution is based on the partnership we have with Combitech,” she explained. “It is a traffic management system being used in airports and subways in the big cities of the world, so is a highly advanced solution.”

Such a partnership dates back to 2017 when Atlas Copco (the Epiroc predecessor) signed an agreement with the Saab subsidiary to advance its digitalisation and automation initiatives.

There was also some news on the battery-electric front, too.

Back in November 2018 at the company’s Power Change Days event in Örebro, Sweden, Erik Svedlund, Global Marketing Manager – Electrification, mentioned the potential for retrofitting battery-electric technology on Epiroc diesel equipment. He said there was also the potential for such a solution being employed on other OEMs’ machines.

IM asked Hedblom about this.

“We have developed the first retrofit kit for a ST1030,” she replied, explaining that the company was “coming close” to releasing such a solution to the market.

While the company has electrified its Scooptram ST7 and its Scooptram ST14, the 10 t payload LHD has been, to this point, only available in diesel-powered form.

She added: “We have also partnered up with a couple of other OEMs that will use our battery system.”

This could be similar to how Railcare, a Swedish manufacturer of machines that keep railways safe and clean, will use Epiroc’s modular and scalable battery-electric technology platform (including batteries supplied by Northvolt) to power its Multi-Purpose Vehicle for rail maintenance applications.

“It goes very much hand-in-hand with the OEM-agnostic approach that we strongly believe in,” Hedblom said.

Those words are backed up by some substantial actions.

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

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

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.”

Northvolt charging up Epiroc battery-electric mining solutions

Energy minerals, Environmental, Mine ventilation, Mining equipment, Mining services, Power supply for mines, , , , , , , , , ,

Northvolt has recently delivered its largest order of lithium-ion battery systems to date to Epiroc, as the two companies’ partnership continues to blossom.

The delivery of systems – which will be integrated into Epiroc’s mid-sized drilling family, Scooptram ST14 LHD and Minetruck MT42 – is the latest in a series made for Epiroc since 2018 and represents the first commercial roll-out of the latest generation of battery system from Northvolt, the Swedish battery developer and manufacturer said.

In an online post from Northvolt, the company interviewed Anders Lindkvist of Epiroc’s underground division to hear about the delivery and find out what it means for the original equipment manufacturer.

“The development of the battery system solution we’re integrating into Epiroc machines, both in terms of hardware and software, has been a true collaboration between Epiroc and Northvolt,” Lindkvist said. “The most recent delivery represents a major update compared to the earlier ones.

“Implemented into the new design are a lot of improvements in terms of reliability and serviceability. These design improvements come from the learnings taken from the common trial, which Northvolt and Epiroc have been involved in over the last 18 months. The changes appear promising.”

Demonstration activities which Lindkvist spoke of began with machine testing at Epiroc’s facilities in Örebro. But, in Spring 2019, testing stepped up to involve the first real-world test for the new battery-powered machines when Epiroc, as part of the EU funded Sustainable Intelligent Mining Systems (SIMS) program, brought several electric machines into commercial operation at Agnico Eagle’s Kittilä gold mine in Finland.

The fleet, running on earlier generation batteries supplied by Northvolt, included a Minetruck MT42, an underground truck which has a 42 t payload capacity – making it one of the largest battery-operated mine trucks on the market.

Commenting on these recent experiences, Lindkvist said: “We’ve gained a deeper knowledge of the limitations of batteries and greater perspective on how to handle and operate them. The limitations are fewer than on diesel engines, but they are different, so these need to be addressed with different actions. This was something we started to learn with our first-generation electric machines, but we now have a much deeper knowledge of the issues.”

Machine performance

“The performance we’re getting from the machines is at the level we expected,” explains Lindkvist. “Actually, battery running time appears longer than estimated, and we have not yet finalised the tuning of energy management which could optimise performance further.”

With battery cell development and optimisation of battery management systems as Lindkvist noted, driving time is likely to increase further still.

“Additionally, we’ve collected feedback from operators who experience the machines to be more powerful,” noted Lindkvist. “Other benefits are becoming clear too – such things as the quietness of operations, and possibility to talk to bystanders next to machines, seem more important than we thought.”

New solutions for an electric future

Close collaboration between Epiroc and Northvolt’s industrial battery design and development teams has been critical, Northvolt says. For Epiroc, an interesting dimension to the partnership is how it has shifted the company’s approach to “surrounding product development”.

Lindkvist said: “Epiroc has a typically involved itself with implementing well-proven solutions; it is very exciting to work with technology in the forefront. Combine this with the rapid growth of Northvolt, in an area where much is happening, and you get a very inspiring and innovative collaboration.”

Looking ahead, the path is bright. Evaluation of electric machine performance and operations will continue with the demonstration project in Finland, and validation of the new battery systems will be undertaken, according to Northvolt.

“As validation is concluded, this new generation system will be available for delivery to customers all over the world,” Lindkvist says. “This will be the moment when we grow to substantial volumes and this is very significant for Epiroc.”

Epiroc already has a sense of demand for these machines. In September 2019, the company announced orders for battery-electric mining equipment from customers in several countries including Finland, Australia and Canada. The orders were for Epiroc’s latest generation of electric machines consisting of 14 t and 18 t loaders, the Minetruck MT42 and a mid-sized drilling family including face drilling, production drilling and rock reinforcement rigs.

Epiroc aims to be able to offer its complete fleet of underground mining equipment as battery-electric versions by 2025.

“We will continue to diesel engine versions, but the volume of machines running on battery power will grow fast as customer readiness develops further,” Lindkvist says.

Successful electrification of mines, of course, relies on more than just machines. To operate a battery-electric fleet effectively, mines need to be designed differently, charging stations and ancillary equipment must be in place and operating profiles for efficient machine usage need to be established.

“Fortunately, the ongoing work of Epiroc is helping to fill out an in-depth understanding of what an electric mine may look like,” Northvolt says.

While underground mines might be some of the first to go electric, in large part thanks to the potential reductions in ventilation underground that create a strong business case, electric machines will soon become common above ground, too, according to Northvolt.

It says: “Epiroc has observed that ongoing success in the underground mine market is proving the viability of the technology and its competitiveness against performance of diesel-powered equipment – points which serve to strengthen the case for developing surface mining solutions.”

This is an edited version of a post that first appeared on Northvolt’s website here.

EIB backing drives forward Northvolt lithium-ion gigafactory plan

Energy minerals, Environmental, Mining equipment, Power supply for mines, Sustainable mining, , , , , , , , , , , ,

A supplier of lithium-ion batteries to the mining equipment space, Northvolt, has recently received conditional backing from the European Investment Bank for a €350 million ($385 million) loan that could finance Europe’s first home-grown gigafactory.

Northvolt said the EIB had provided an in-principle agreement for the financing – the largest ever direct EIB financing approval for battery technology – and, upon conclusion of a loan agreement, the funding would be supported by the European Fund for Strategic Investments (EFSI), the main pillar of the Investment Plan for Europe.

The Northvolt Ett lithium-ion battery cell gigafactory will be established in Skellefteå, northern Sweden, a region home to a prominent raw material and mining cluster with a long history of process manufacturing and recycling.

“Noting the region’s clean power base, building the factory in northern Sweden will enable Northvolt to utilise 100% renewable energy within its production processes,” Northvolt said.

Northvolt already supplies lithium-ion batteries to Epiroc for its battery-electric underground mining vehicles and is believed to supply at least one of other major mining OEM.

EIB Vice-President, Andrew McDowell, said: “The development of a competitive and green battery value chain within Europe can not only cut greenhouse gas emissions by decarbonising power generation and transport, but can also help protect millions of well paid jobs in European industries in the face of increasing global competition.”

Northvolt Ett will serve as Northvolt’s primary production site, hosting active material preparation, cell assembly, recycling and auxiliaries. The construction of the first quarter of the factory is expected to be completed in 2020. Ramping up to full capacity, Northvolt Ett will produce 32 GWh/y of battery capacity, the company said.

Peter Carlsson, Co-Founder and CEO of Northvolt, said: “This EIB in principle approval is a key moment in the process of finalising our capital raise to support the establishment of Northvolt Ett. Today, we are one step closer to our goal of building the greenest batteries in the world and enabling the European transition to a decarbonised future.”

The capital raise, in which this EIB loan would be included, will finance the establishment of the first 16 GWh of battery capacity production, with the batteries from Northvolt Ett targeted for use in automotive, grid storage, and industrial and portable applications.

Ibrahim Baylan, Swedish Minister for Business, Industry and Innovation, said: “Today’s decision by the EIB is very gratifying and a big step towards a large-scale battery production in the EU and a fossil-free welfare society. The decision shows that there are prerequisites in Sweden for sustainable battery production, it is important for Sweden and the rest of the EU to produce battery materials and battery cells, based on green, Swedish electricity.”