Tag Archives: renewable power

Rio Tinto looks to renewably power Gladstone ops with Australia’s largest solar power project

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Rio Tinto says it will drive development of Australia’s largest solar power project near Gladstone, Queensland, after agreeing to buy all electricity from the 1.1 GW Upper Calliope Solar Farm to renewably power its Gladstone operations.

The agreement will bring more renewable power into one of Australia’s most important industrial hubs and marks another step towards Rio Tinto’s climate goal of halving its global Scope 1 & 2 carbon emissions this decade, the mining company said. If combined with more renewable power and suitable firming, transmission and industrial policy, it could also provide the core of a solution to repower Rio Tinto’s three Gladstone production assets – the Boyne aluminium smelter, the Yarwun alumina refinery (pictured) and the Queensland Alumina refinery.

Under a new power purchase agreement (PPA) signed with European Energy Australia, Rio Tinto will buy all power generated from the Upper Calliope solar farm for 25 years. The plant will be built and operated by European Energy, at a site about 50 km south-west of Gladstone, pending development and grid connection approvals.

Once approved and developed, Upper Calliope would have the potential to lower Rio Tinto’s operating carbon emissions by 1.8 Mt/y, the company says.

Rio Tinto Chief Executive, Jakob Stausholm, said: “This agreement is a first important step in our work to repower our Gladstone operations and illustrates our commitment to keeping sustainably powered industry in central Queensland.

“The task remains challenging, but we have a pathway to provide the competitive, firmed power our Gladstone plants need and we are continuing to work hard with all stakeholders, including the Queensland and Australian governments, on getting there.

“Competitive capacity, firming and transmission are critical to developing a modern energy system that can ensure more large-scale renewables development in Queensland and help guarantee the future of Australian industry.”

Once approved, construction of the Upper Calliope plant is targeted to start in 2025 or 2026 and, when complete, it will provide enough electricity to meet about 5% of Queensland’s current demand. The plant, which is expected to take two years to construct, will cover 2,400 ha, employ 1,000 people during construction and support 100 direct and indirect jobs when operating.

European Energy CEO, Erik Andersen, said: “European Energy is proud to be a strategic partner in this project with Rio Tinto. Our commitment to providing renewable and reliable energy aligns perfectly with Rio Tinto’s ambitious climate goals. The Upper Calliope Solar Farm is not just a solar power project; it’s a testament to our shared vision for a greener future.

“By supplying renewable energy to one of Australia’s key industrial hubs, we are setting a new standard for industrial energy consumption. This project underlines our dedication to driving the transition towards renewable energy in Australia and demonstrates the potential of solar power in transforming the energy landscape of the region. We look forward to continuing our collaboration with Rio Tinto and other stakeholders to create a sustainable and energy-efficient future for Australia.”

Upper Calliope is the first successful applicant in a formal Request for Proposals made by Rio Tinto for renewable power and firming projects in central and southern Queensland.

Rio Tinto says it continues to assess other proposals, solutions and partnerships to help competitively meet the energy needs of its three production assets in the Gladstone region. These assets require more than 1 GW of reliable power to operate, which equates to over 4 GW of quality wind or solar power with firming. Potential further electrification of plant processes could increase their electricity demand in the future.

ABB solution underwrites solar power plant installation at Kinross Tasiast

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A bespoke end-to-end switchgear and circuit breaker solution from ABB Electrification is powering up a new solar plant at Kinross Gold’s Tasiast operation in Mauritania, which is looking to significantly reduce emissions via the use of renewable energy.

The Tasiast project has recently increased capacity to 24,000 t/d of gold while reducing costs.

To help meet the company’s sustainability targets, an integrated PV solar plant has been finalised – with power generation capacity of 34 MW and a battery system of 18 MW – to provide around 20% of the site’s power.

The Tasiast solar project is expected to reduce greenhouse gas emissions by approximately 530,000 t over the life of the mine, which could save approximately 180 million litres of fuel over the same period, according to the company. The new scheme is also contributing to the Government of Mauritania’s GHG reduction targets in the country.

Long standing ABB partner, Voltalia, based in Portugal, was tasked with the systems integration and value chain of the new project. Despite already being covered for protection relays, IED and energy metres, the main MV switchgear required integration in the Low Voltage Compartment (LVC) and interoperability with other devices from different manufacturers, so all components operated in conjunction, complementing each others functions and meeting all customer demands.

Subsequently, ABB specified 15 SF6-free and UniGear ZS2 air insulated switchgear panels. These offer additional benefits such as a smaller footprint, easy maintenance and assembly, plus withdrawable voltage transformer, according to ABB. The solution also included 13 of ABB’s VD4 vacuum circuit breakers – there are more than two million in active operation globally – which minimise maintenance and costly downtime, increase safety and provide primary and secondary protection guarantees.

Jeremy Martin, Project Manager at Voltalia SA, said: “Working with ABB on the Tasiast solar project was again a good experience. ABB’s technical expertise played a key role in achieving our objectives for this project. Working alongside a committed partner like ABB reinforces our belief that collaboration can bring about real change.”

Crucially, ABB technology comes with compact dimensions free of SF6 insulating gas in the switchgear or the circuit breaker – without compromising performance, safety or reliability – which was a key differentiator for both Voltalia and Kinross, ABB says.

With the relays taking up significant space and having to be fitted within the confines of the LVC door, without interfering with the wiring and other components, the ZS2’s footprint flexibility proved ideal, according to ABB. For extra protection, ABB also integrated two relays in one panel and the Relion RED615, with its superior line differential protection and control for incomer units, complemented the functionality required and fitted in the tight LVC door front access, it added.

Nuno Nunes, Sales Engineer at ABB Portugal, said: “The mining industry is committed to reducing its emissions and integrating more renewable energy sources, so it was great to be involved in this innovative project, which uses our space-saving and SF6-free switchgear and circuit breakers to help provide continuous power supply for the new solar plant to operates at peak levels.”

Nida Deveci, Sales Manager and UGUR ACAR Project Manager for ABB Turkey, explained: “The factory acceptance test with our partner Voltalia was successful at the first attempt and proved that the collaboration and understanding was clear and good from the offset. They were very pleased with the speed of our responses and appreciated the technical revisions and adjustments we brought to the table to complete the process satisfactorily for all concerned parties.”

Rio Tinto, Yindjibarndi Energy Corp sign renewable MoU for Pilbara operations

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Rio Tinto and Yindjibarndi Energy Corporation (YEC) have signed a memorandum of understanding (MoU) to explore opportunities to collaborate on renewable energy projects on Yindjibarndi country in the Pilbara region of Western Australia.

The two companies will study and evaluate a range of opportunities including wind and solar power as well as battery energy storage systems. The initial focus is on rapidly exploring the potential development of a solar power generation facility for the supply of energy to Rio Tinto.

Rio Tinto operates four gas-fired power stations in the Pilbara. About 600 MW to 700 MW of renewable generation is estimated to be required to displace the majority of gas use across its network. The company is currently assessing the development of approximately 300 MW of solar projects. The collaboration opportunities currently being explored by Rio Tinto and YEC, if progressed, would be complementary to renewable energy developments on Rio Tinto Iron Ore’s electricity grid.

YEC was established in June following an agreement between Yindjibarndi Aboriginal Corporation (YAC) and renewable energy developer ACEN Corporation (ACEN) to progress the development of major renewable energy projects on Yindjibarndi Ngurra (country) – an area covering approximately 13,000 sq.km within the Yindjibarndi Native Title Determination Areas.

YEC’s initial plans include a Stage 1 target of 750 MW of combined wind, solar and battery storage with construction to commence within the next few years. The collaboration opportunities being considered by Rio Tinto and YEC relate to some of these Stage 1 projects.

YAC Chief Executive, Michael Woodley, said: “Yindjibarndi Ngurra is ideally suited to developing renewable energy generation and our people are encouraged by Rio Tinto’s interest in building this capacity with us. This will strengthen our existing partnership and provide long term benefits for our community, while also ensuring that we can protect and preserve the areas of cultural, spiritual and environmental significance within our Ngurra.”

ACEN International CEO, Patrice Clausse, said: “This MoU signifies more than just a partnership; it’s a testament to the shared vision of sustainable energy development on Yindjibarndi Ngurra. It is the perfect blend of traditional significance and modern technology, designed to harness the limitless potential of the Pilbara’s sun and wind, while respecting the deep-rooted connection of the Yindjibarndi people with their land.

“Together, we are crafting an energy future that is not only renewable, but also renewing, by empowering local communities and contributing to a greener future.”

Rio Tinto Iron Ore Chief Executive, Simon Trott, said: “We are focused on repowering our Pilbara operations with renewable energy through the end of this decade and beyond by replacing gas and diesel with clean energy alternatives. The Pilbara is blessed with abundant year-round sunshine and strong winds at night, making it one of the most attractive places in the world to harness solar and wind power for energy generation. We’re excited to be deepening our partnership with the Yindjibarndi People through this agreement and look forward to working closely with them.

“We recognise we have a large carbon footprint in the Pilbara and are exploring a number of innovative solutions to help address this, including future collaborations with other Traditional Owner groups in the region.”

Rio Tinto has committed to reducing its Scope 1 and 2 emissions by 50% by 2030 across its global operations, with an estimated $7.5 billion planned to be spent on decarbonisation projects, predominantly in the second half of the decade. These projects will support a longer-term ambition of net-zero emissions by 2050.

Rio Tinto’s rail network, which connects its Pilbara mines to ports at Cape Lambert and Dampier in Western Australia, traverses Yindjibarndi Country. Rio Tinto has held a Participation Agreement and Indigenous Land Use Agreement with YAC, the representative body for the Yindjibarndi people, since 2013.

Last year, Rio Tinto and YAC signed an updated agreement aimed at strengthening ties and delivering improved social and economic outcomes for the Yindjibarndi people. The agreement reflects a joint commitment to work together to create more opportunities for the Yindjibarndi people to participate in Rio Tinto’s operations, including direct and indirect employment opportunities, and build sustainable long-term benefits to the community.

Zenith Energy and Northern Star seal renewable energy-focused PPA at Jundee

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Zenith Energy has converted the preliminary works agreement and term sheet it had in place with Northern Star Resources related to bolstering the power supply to the Jundee gold mine in Western Australia with a renewable energy Power Purchase Agreement.

Jundee is an existing mining operation that will have wind, solar and battery retrofitted into the mix and integrated into the existing gas power station. The renewable generation being added includes 24 MW of wind, 16.9 MWp of solar, and 12 MW/13.4 MWh of battery energy storage.

Zenith says this new energy mix will result in 56% of the mine site’s power coming from renewable sources, contributing towards the aim of cutting Jundee’s Scope 1 and 2 carbon emissions by 35-50% by 2030.

Currently all ore is sourced from Jundee underground operations which yield circa-1.8 Mt/y of ore. There are three underground portals which provide access to the various underground lode structures – Barton, Gateway and Invicta portals. Underground mining is being carried out by an up-hole long-hole open stoping sequence as its primary method. No backfill or paste is used.

The Jundee processing circuit is a conventional carbon-in-leach plant with a hard-rock processing capacity of approximately 3 Mt/y. The process consists of a single toggle overhead eccentric swing jaw crusher followed by a SAG and ball milling circuit incorporating gravity recovery and carbon-in-pulp process achieving 92% recoveries, according to Northern Star.

Hybrid Systems Australia delivers Western Australia’s ‘largest network-integrated BESS’ to Fortescue

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Hybrid Systems Australia, Pacific Energy’s integrated renewables subsidiary, says it has delivered Western Australia’s largest network-integrated battery energy storage system (BESS) as a part of Fortescue Metals Group’s Pilbara Energy Connect project, which aims to power the miner’s Pilbara iron ore operations with renewable energy.

Hybrid Systems Australia designed, installed and commissioned 42 MW of interconnected battery storage for two Fortescue mine sites, making it one of the world’s largest network-connected BESS to be developed for a mining application, the company says.

The batteries, which are now fully operational, have been developed alongside solar and new low emissions gas-fired generation that will be owned and operated by Fortescue as part of the company’s Pilbara Energy Connect (PEC) program.

HSA said: “The battery systems use industry-leading grid stabilising control systems, including millisecond-response capabilities and Kokam battery technology, to provide greater protection against load spikes and dips and ensure overall network stability.”

The batteries’ primary role is for grid stability and support, providing spinning reserve backup to any gas generation outages or sudden changes in the solar output. They will store energy from Fortescue’s planned 150 MW of nearby solar power, enabling mining activities to be powered by more renewable energy and cutting the annual carbon emissions of the mines.

Mike Hall, Executive Director of Hybrid Systems Australia, said the project represented one of the largest and most technologically advanced BESS projects the company had undertaken, and that systems of this size were critical to Fortescue’s move towards eliminating the use of fossil fuels in their operations by 2030.

“Our industry-leading design, network integration experience and strong partnerships meant we could readily deliver a large-scale solution that will allow Fortescue to continue its rapid upscale of renewable capacity and deliver on its real zero target,” he said.

“Our BESS are built specifically for remote Australia’s harsh conditions and can be sized from 1 MW to 200 MW, which makes them ideal for large-scale mining applications where the objective is greater reliance on clean energy.”

Fortescue Chief Operating Officer Iron Ore, Dino Otranto, said: “At Fortescue, we are committed to eliminating the use of fossil fuels across our operations by 2030. We were pleased to partner with Hybrid Systems Australia on the BESS, which are a significant component of our investment in the PEC program.

“PEC will not only supply low-cost power to our Iron Bridge operations, but importantly will support Fortescue’s world-leading decarbonisation agenda, allowing the incorporation of additional large scale renewable energy into our network in the future.”

The project included specialised involvement from its subsidiaries, Pacific Energy Pty Ltd, which is delivering the PEC’s low-emissions gas-fuelled power station, MVLV Power Solutions, which designed, manufactured and installed the switchgear and BESS enclosures, and Digital Intelligence, which delivered the BESS control systems.

Hybrid Systems Australia partnered with Hitachi Energy and Kokam to bring together expertise and key battery components from the two specialist equipment suppliers to deliver a solution for Fortescue. It also worked closely with Supply Nation accredited vendors, including electrical contractor, Boodjara Pty Ltd, and local electrical wholesalers, Myelec and D&W Electrical.

BHP partners with Neoen on Olympic Dam renewable power pact

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BHP says it has signed a renewable Power Purchase Agreement (PPA) with Neoen, which is expected to meet half of Olympic Dam’s electricity needs from its 2026 financial year.

The agreement, which is based on current forecast demand, will allow Olympic Dam to record a net zero emission position for the contracted volume of supply, according to BHP.

The PPA is expected to supply 70 MW of electricity to Olympic Dam and will support Neoen to construct the 203 MW Goyder South Stage 1b Wind Farm, assuming all relevant consents are obtained, BHP said. This wind farm is to form part of the larger Goyder Renewables Zone in South Australia, and will introduce new renewable generation into the South Australian electricity grid.

In addition, Neoen will construct a large-scale battery energy storage system in Blyth, South Australia, to support the PPA, which will also assist in improving the stability of the South Australian electricity grid.

Goyder South Stage 1, consisting of Goyder South 1a and 1b, is the first stage of Neoen’s flagship project known as Goyder Renewables Zone – a hybrid wind, solar and storage project located in mid-north South Australia. Goyder South has development approval for a total of 1,200 MW of wind generation, 600 MW of solar generation and 900 MW of battery storage capacity – making it South Australia’s largest renewable project.

BHP Olympic Dam Asset President, Jennifer Purdie, said: “The world needs South Australia’s high-quality copper to build renewable technologies and infrastructure, and BHP is focused on producing that copper more sustainably.”

“This agreement will support BHP on its decarbonisation journey, and provide new firmed renewable energy and increased stability to the South Australian grid.”

This latest agreement follows commitments BHP has made in recent years, which have seen renewable electricity contribute to powering BHP facilities in Western Australia, South Australia, Queensland and Chile.

This PPA continues the actions BHP is taking to contribute to its medium-term target to reduce operational greenhouse gas emissions (Scopes 1 and 2 from its operated assets) by at least 30% from adjusted 2020 financial year levels by its 2030 financial year.

BHP’s Chief Commercial Officer, Vandita Pant, said: “BHP is consciously working towards our target of at least a 30% reduction in our operational emissions by FY2030. Renewable energy partnerships, such as this agreement with Neoen, are important steps towards that outcome, and our longer-term 2050 net zero goal.”

Louis de Sambucy, Neoen Australia’s Managing Director, said: “We are delighted to provide BHP with this highly innovative solution. We are convinced that our ability to combine our assets and our energy management capabilities to create bespoke commercial offers will be a key element of success for our future developments.”

Xavier Barbaro, Neoen’s Chairman and Chief Executive Officer, added: “We thank BHP for their vote of confidence. Thanks to its storage assets and deep expertise, Neoen is now able to offer 24/7 energy to its customers. This first baseload PPA is a significant step forward for Neoen and will serve as a template for future contracts, opening up new market opportunities in Australia and in the rest of the world.”

Neoen, BHP says, is one of the world’s leading independent producers of exclusively renewable energy, having close to 5.6 GW of solar, wind and storage capacity in operation or under construction across numerous countries.

Centamin’s Sukari solar power plant performing ahead of expectations

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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 battery–energy 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 battery–energy 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 off–grid 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 30–50 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.”

OZ Minerals’ West Musgrave copper-nickel plan receives board approval

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The OZ Minerals Board has greenlit the build of the West Musgrave copper-nickel project in Western Australia, paving the way for the development of a remote asset using dry grinding technology, autonomous haulage and a significant volume of renewable power.

West Musgrave is set to become OZ Minerals’ fourth operating asset when it starts producing concentrate in the second half of 2025, in the process becoming the company’s cleanest and greenest mine with plans to reach net zero Scope 1 emissions by 2038.

The feasibility study the board signed off on details a 13.5 Mt/y operation with average production of circa-28,000 t/y of nickel and circa-35,000 t/y of copper over a 24-year operating life. Coming with a A$1.7 billion ($1.1 billion) direct initial capital expenditure bill, West Musgrave could provide cash flow generation of circa-A$1.9 billion during the first five years of production based on OZ Minerals’ projections.

One of the interesting additions to the process flowsheet – which has been mentioned in previous economic studies – is the use of LOESCHE’s Vertical Roller Mill (VRM) technology.

Two VRMs will operate in parallel after the primary and secondary crushing circuit at West Musgrave, with OZ Minerals noting benefits in reducing power consumption by around 20%, supporting higher flotation recovery and the operational flexibility to be ramped up and down. The latter is particularly important given OZ Minerals plans to make West Musgrave one of the largest fully off-grid, hybrid renewable powered mines in the world with an initial circa-80% renewable penetration rate, powered off wind and solar energy with a battery energy storage system in tow.

Dr Thomas Loesche, Managing Shareholder and owner of LOESCHE, said: “As a mining engineer with a degree in mineral processing, it has always been a vision of mine to develop dry-comminution technologies that enable better sorting efficiencies, reduced power and consumables. We are very pleased to be involved in such an important project. OZ Minerals is breaking new ground and proving that sustainability does not stand in the way of project development, but rather makes such projects possible.”

The application of the VRM technology has been peer reviewed for the project by independent experts and has been de-risked through pilot test work campaigns, OZ Minerals added.

Further upstream of the VRMs, OZ Minerals has stated plans to operate the mining fleet remotely from day one at West Musgrave, with the acquisition of an autonomous haulage system-enabled fleet on a leasing basis in the feasibility study outline.

OZ Minerals did not include details of the size of truck involved in the latest study, but the prefeasibility study originally released in 2020 highlighted the use of up to 25 220-t payload haul trucks.

There is also potential for these haul trucks to be electric in the future, with OZ Minerals saying its pathway is aligned with the potential transition to an electric haulage fleet at the first engine change out.

While OZ Minerals says it has the capacity to fully fund West Musgrave with a new A$1.2 billion syndicated facility supported by key relationship banks awaiting final binding agreements, it said potential strategic partnership in the project via a minority interest was being explored.

The next steps for the project involves award of contracts with major partners – it has already signed up GR Engineering to build the process plant; increasing the capacity of its camp to around 250 beds by early 2023; mobilisation of equipment to commence earthworks; finalise the power purchasing agreement and Living Hub – the latter of which has 350 permanent ensuite rooms; and increasing its owner team resources in line with the plan, including operational-readiness personnel.

Glencore’s Mount Isa ops set for renewable power injection from APA Group

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APA Group has reached a Final Investment Decision (FID) to build stage two of the Mica Creek Solar Farm in Mount Isa, Queensland, a decision that has brought with it an agreement to supply Glencore’s Mount Isa Mines copper-lead-zinc-silver operations in the state with renewable electricity.

The stage two investment is underpinned by a variation to the existing offtake agreement with APA customer Mount Isa Mines Limited (MIM), a Glencore company, according to APA. The variation adds a new service for the supply of electricity from the Mica Creek Solar Farm for 15 years, requiring additional capital expenditure by APA of around A$70 million ($49.8 million).

FID on stage two, which comprises 44 MW of additional solar power generation, follows APA’s announcement on November 1 that APA had reached FID on stage one of the Mica Creek Solar Farm and entered into an offtake agreement with MMG’s Dugald River operation to supply an initial 44 MW of renewable electricity to the miner. APA’s total investment for both stages of the works is estimated to be around A$150 million.

The second stage of the solar farm is to be co-located on the same site as stage one, near APA’s Diamantina Power Station Complex, on land which is leased from the Queensland Government. The solar farm is expected to be operational by mid-2023.

APA’s solar offtake agreement has been negotiated at a commercially competitive tariff, consistent with utility solar pricing, and will reduce the average delivered cost of power for MIM, APA said.

“This A$150 million investment will support APA’s vision for a world-leading hybrid energy grid in Mount Isa and our aspiration to support the further increases of renewable energy penetration for the region,” APA CEO and Managing Director, Rob Wheals, said.

“The support for the 88 MW Mica Creek Solar Farm demonstrates the enthusiasm of customers in the Mount Isa region for integrated energy solutions that can both meet their energy needs and help reduce their operational emissions.

“With continued strong interest from customers, APA is investigating a potential expansion for a third stage.”

Australian Potash adds renewable power to the Lake Wells SOP mix

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Australian Potash says it has finalised the front-end engineering design (FEED) study for the engineering, procurement and construction (EPC) of Australia’s first high penetration renewable power solution on a greenfield sulphate of potash (SOP) minerals project development.

The study outlined a base case renewable power penetration rate of 53% with potential to rise to 87%, the company said. This would result in a 50% reduction in carbon dioxide emissions to 21,700 t/y compared with the hydro-carbon power solution base case outlined in the 2019 definitive feasibility study (DFS) for its Lake Wells SOP project, in Western Australia.

According to the company, the Mannheim (industrial) SOP production route produces 300% more carbon emissions than the route outlined for the Lake Wells SOP project on an equivalent tonne’s basis, positioning the asset as the lowest CO2 emitting potash project development in Australia.

Australian Potash Managing Director and CEO, Matt Shackleton, said: “Solar-SOP projects naturally sit at the lower end of the CO2 emissions curve by virtue of the natural evaporative process involved, and we challenged our project team to model a renewable power solution to maximise the…[project]’s long-term environmental sustainability.

“We are running competitive tendering processes for the eight packages of work defined to develop the LSOP, and bids have been received for the Power Station EPC package. This package was scoped to include renewable power generation, battery storage and an LNG backup reserve.

“Very pleasingly, these bids exceeded our design criteria both in terms of the rate of penetration of renewable power, and the impact that the renewable power solution has on reducing the LSOP’s carbon emissions. These are benefits that accrue to both our shareholders and the broader stakeholder and investment base.

“Solar-SOP production competes on a cost basis with the industrial Mannheim process, sitting at the lowest end of the global cost of production curve. The Lake Wells SOP project will produce SOP into that lowest quartile, and will also be one of the lowest carbon footprint potash projects globally.

“The company is pursuing organic certification for the suite of products to be produced at the Lake Wells SOP project, which will truly make the K-Brite™ branded SOP long-term environmentally sustainable.”

Key outcomes from the 2019 DFS on Lake Wells include:

  • 30-year mine life producing 150,000 t/y of premium grade SOP utilising approximately 21% of the total measured resource estimate;
  • Long mine life underpinned by 3.6 Mt reserve and 18.1 Mt measured resource estimate;
  • Development capex of A$208 million ($146 million) with capital intensity of A$1,387/t; and
  • First quartile industry operating costs of $262/t providing high cash operating margins.

The current program of works for the Lake Wells SOP project would see construction commence in the March quarter of 2021.