Tag Archives: nuGen

Anglo American invests $200 million into new nuGen-focused First Mode vehicle

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

Anglo American’s ambitious plans to roll-out its nuGen™ Zero Emissions Haulage Solution (ZEHS) have been given a boost with the announcement that it has signed a binding agreement with First Mode Holding to combine to the two entities.

Such a deal was mooted back in June when Anglo American confirmed it was in exclusive negotiations with First Mode – and had agreed non-binding terms – to combine the nuGen ZEHS with the specialist engineering technology company.

The two companies’ collaborative efforts led to the launch of the prototype nuGen ZEHS hydrogen-powered mine haul truck at Anglo American’s Mogalakwena PGMs mine in South Africa on May 6, 2022. This month the truck reached a significant milestone when it completed initial commissioning and was introduced into the mine’s commercial fleet operations, including pit and crusher activities, according to First Mode.

The latest agreement will see the mining company invest $200 million into a combined business to help fund the ongoing development of ZEHS which, upon completion of the transaction, values the business in the order of $1.5 billion and results in Anglo American owning a majority shareholding in First Mode.

Upon closing of the transaction, expected in January 2023, Anglo American will enter into a supply agreement with First Mode to decarbonise its global fleet of ultra-class mine haul trucks, of which approximately 400 are currently in operation, in support of Anglo American achieving its 2040 target for carbon-neutral operations.

The roll-out across Anglo American’s haul truck fleet over the next circa-15 years is subject to the completion of agreed and committed studies across seven mine sites, certain performance and cost criteria, and relevant regulatory, corporate and shareholder approvals, the mining company said. The supply agreement also includes the appropriate provision of critical supporting infrastructure such as refuelling, recharging and facilitation of hydrogen production.

Anglo American says it also recognises its role in supporting broader decarbonisation objectives outside its own business and that the technologies and capabilities it develops as part of the nuGen project present opportunities in other industries that rely on heavy duty forms of transport, such as rail.

In addition to accelerating the development and commercialisation of the ZEHS technology, the new combined business will allow strategic third parties to co-invest alongside Anglo American and First Mode, offering the opportunity to accelerate their own decarbonisation and participate in the potential offered by the clean ZEHS technology, the company added.

“The new combined business retains the First Mode name and will prioritise developing nuGen ZEHS, building on three years of extensive development by Anglo American and First Mode,” the company concluded.

In a separate press release from First Mode, it mentioned that current First Mode President and CEO, Chris Voorhees, will transition to the role of Chief Product & Technology Officer, overseeing the company’s global product and technology development out of Seattle. Julian Soles, Anglo American’s head of Technology Development, will take over as First Mode CEO and be based in First Mode’s new headquarters in London.

Voorhees said: “First Mode was founded in 2018 with the goal of building the barely possible. We have done just that and our mission is now to rapidly decarbonize heavy industry by dramatically reducing our customers’ greenhouse gas emissions. I can’t imagine a team better suited to this urgent challenge.”

Soles added: “The First Mode mission is much bigger than a single haul truck. Mining is how the world obtains the materials needed for the clean energy transition, and it is where the carbon footprint starts. This is where the First Mode solution begins; starting at the source, in mining, to replace diesel and accelerate the clean energy transition.”

Anglo American, EDF Renewables establish regional renewable energy ecosystem in South Africa

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

Anglo American has joined forces with EDF Renewables to establish a new jointly owned company, Envusa Energy, aimed at developing a regional renewable energy ecosystem (RREE) in South Africa.

In March 2022, the two companies signed a Memorandum of Understanding to explore the ecosystem’s development, designed to meet Anglo American’s operational power requirements in South Africa and support the resilience of the local electricity supply systems and the wider
decarbonisation of energy in the country. The RREE is also expected to catalyse economic activity in South Africa’s renewable energy sector, supporting the country’s broader just energy transition.

As part of the agreement, Envusa Energy is launching a mature pipeline of more than 600 MW of wind and solar projects in South Africa – a major first step towards the development of an ecosystem that is expected to generate 3-5 GW of renewable energy by 2030, Anglo American says. This first phase of Envusa Energy’s renewables projects is expected to be fully funded – including by attracting debt financing that is typical for high quality energy infrastructure projects – and ready for construction to begin in 2023.

Envusa Energy is expected to supply Anglo American with a blend of renewable energy generated on Anglo American’s sites and renewable energy transmitted via the national grid. This energy portfolio approach will aggregate energy from geographically-dispersed renewable generating assets and allocate this energy optimally to meet the load demand for Anglo American’s sites, the company explained.

Nolitha Fakude, Chair of Anglo American’s Management Board in South Africa, said: “I’m delighted to confirm our ground-breaking partnership with EDF Renewables to form Envusa Energy. This is a significant milestone in Anglo American’s global decarbonisation journey and another step forwards for South Africa’s clean energy future. We are making great strides towards our 2040 target of carbon-neutral operations, while contributing to South Africa’s just energy transition through our responsible approach.

“We believe that the energy transition presents a fresh opportunity for South Africa and the rest of the region to build a clean and inclusive energy ecosystem that can create significant new economic opportunities. I am very encouraged by our progress – affirming Anglo American’s commitment to South Africa’s next phase of development towards a low-carbon future.”

Tristan de Drouas, CEO at EDF Renewables in South Africa, said: “We are very pleased to be part of this very innovative venture and look forward to bringing our global expertise in renewable energy infrastructure development, design and delivery to Envusa Energy. This partnership with Anglo American confirms our long-term perspectives in the country: this 600 MW first tranche of projects will be added to the almost 1 GW that EDF Renewables will be building or operating in the country by 2023 – including 420 MW of wind projects in REIPPP Bid Window 5, whose PPAs were signed with Eskom and the DMRE on September 22, 2022.

“Together, these projects further EDF Group’s CAP 2030 strategy, which aims to double our net renewable installed energy capacity worldwide (hydropower included) from 28 GW in 2015 to 60 GW by 2030.”

The roll-out of the RREE will also serve as a clean energy source for the production of green hydrogen for Anglo American’s nuGen™ Zero Emission Haulage Solution (ZEHS) – a planned fleet of hydrogen-powered ultra-class mine haul trucks (the original prototype pictured at Mogalakwena above) – significantly reducing on-site diesel emissions towards a carbon neutral future while also supporting the development of South Africa’s Hydrogen Valley, Anglo American said.

Through the formation of Envusa Energy, Anglo American and EDF Renewables are committed to supporting South Africa’s economic transformation and empowerment goals. The process to identify an appropriate Black Economic Empowerment (BEE) partner for Envusa Energy is expected to begin in the fourth quarter of 2022.

Furthermore, and in line with both companies’ commitment to a just energy transition, Envusa Energy is exploring a range of community partnership models that will enable host communities to share in the benefits created by the development of the RREE, along its value chain, Anglo American said.

Anglo American to formalise First Mode partnership as part of zero emissions haul truck deployment plans

Environmental, Mining equipment, Mining mergers and acquisitions, Mining services, Power supply for mines, , , ,

Anglo American says it is in exclusive negotiations with First Mode Holding Inc, and has agreed non-binding terms, to combine Anglo American’s nuGen™ Zero Emissions Haulage Solution (ZEHS) with First Mode, the specialist engineering technology company that partnered with Anglo American to develop the nuGen ZEHS.

The transaction would include a capital investment by Anglo American in the combined business and is intended to accelerate the development and commercialisation of Anglo American’s nuGen ZEHS, Anglo says. The new combined business would retain the First Mode name as an independent business and prioritise developing nuGen ZEHS, building on three years of extensive development by Anglo American and First Mode.

Anglo American launched the prototype of its nuGen ZEHS hydrogen-powered mine haul truck at its Mogalakwena PGMs mine in South Africa on May 6, 2022 – the world’s largest designed to operate in everyday mining conditions. It was run with 150 t of payload for the launch, only due to there not being a matching shovel in the trial area, but Anglo said that the prototype is already fully capable of its full 290 t payload. The launch saw it drive up a 7% slope – representative of typical mine haul road grade at Mogalakwena – and then dump the 150 t load, with a main driver and co-driver on board the truck.

The agreement envisages that Anglo American will enter into an agreement with First Mode to decarbonise its global fleet of ultra-class mine haul trucks, of which approximately 400 are currently in operation, as well as provide critical supporting infrastructure such as refuelling, recharging and facilitation of hydrogen production.

Anglo American also recognises its role in supporting broader decarbonisation objectives outside its own business. The technologies and capabilities that it has been developing as part of the nuGen project with First Mode present opportunities beyond Anglo American’s haul truck fleet, including across other industries that rely on heavy-duty forms of transport, such as rail.

Anglo American acquired a 10% strategic equity interest in First Mode in 2021.

The latest transaction would include Anglo American making an additional capital investment in the combined business which, upon completion, would result in a majority shareholding. The balance of the equity interest at that time would be held by a number of First Mode’s founders and employees.

In addition to accelerating the development and commercialisation of the ZEHS technology, the new combined business would allow strategic third parties to co-invest alongside Anglo American and First Mode, offering the opportunity to accelerate their own decarbonisation and participate in the potential offered by the clean ZEHS technology.