1. Renewable Energy Applications in the mining sector
Pépin TCHOUATE HETEU (PhD, Dipl.-Ing.)
Senior Energy, Environment, Climate change mitigation Consultant&Scientist
Director DEECC Consulting, Belgium
6th Zimbabwe Mining & Infrastructure Indaba October 2014

2. Few words on DEECC Consulting
Consultancy services in
Planning & integration of renewable energy plants in existing grid or remote areas
Energy audits
Renewable energy policy and regulatory aspects
Design of combined Heat/Power/Cooling generation plants
Rural electrification
Engineering of energy grids and facilities
Environmental Impact Assessment
Design & Implementation of Capacity Building  activities
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Introduction
The mining industry is changing the way it manages energy. In recent years, rising costs have driven the industry to focus on efficiency, but efficiency can only go so far.
To solve this growing challenge, renewables will play a crucial role, for both grid-connected and remote sites  
6th Zimbabwe Mining & Infrastructure Indaba October 2014

4. Reasons for Renewables in the mining sector?
1). Energy price and stability is a significant factor in mine profitability. Mines are actively seeking energy alternatives that provide stable power at stable prices. 2) In South America, Europe, Asia and Australasia, renewables have reached grid parity with fossil fuels bcause of high electricity prices in mining centers.  3) Power quality for grid tied mines in developing countries leads to frequent outages and loss of production driving the mining sector to explore more reliable, self-supplied power. 4) The increased demand for metals and minerals in the world has forced mining companies to more remote sites and to sites with lower grade ore, with subsequent increase of energy production cost. 5) Emissions legislation including carbon tax and green energy incentives are being proposed or are in place in Australia, South Africa, Brazil, Chile and parts of Canada. Mining companies increasingly have to fiscally account for greenhouse gas emissions and are financially encouraged to seek alternatives.
6th Zimbabwe Mining & Infrastructure Indaba October 2014

5. Reasons for Renewables in the mining sector?
6) The use of renewables improves the reputation of mining companies. 7) CSR is now a priority for many mining companies. Sustainability reports now often highlight alternative, low-pollution energy initiatives.  8) By 2022 renewables use by the mining sector is expected to increase to 5%-8% (from today’s level of 0.1%). Wind and solar will account for 60% of renewable energy investments by ) There are now numerous working examples of renewables at mine sites delivering stable power at affordable prices.  Renewables is becoming more accepted by the risk averse mining sector. 10) PPAs  and ESCO  models are becoming more attractive– enabling faster adoption, de-risking the investment for the mining sector.
6th Zimbabwe Mining & Infrastructure Indaba October 2014

6. Declining grid-connected PV system cost
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Economics
Source: IRENA 2012
Gen: Generator, PV: Photovoltaic, Strg: Storage
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Few selected examples
Location
Capacity
Supply [GWh/y]
tCO2 avoided/y
Status
Pozo Almonte(Chile)
25 MWdc 60
48 000
Op 2013
Calama (Chile)
1,1 MWdc
2,3
2152
OP 2012
Northern Chile
CSP MW
PV - 75 MW dC
MSS – 14 hrs –
Under negociation
Lonmin Marikana (SA)
8 MWp
Pampa Elvira (Chile)
51,8 (th)
15 000
Crominet NRG (SA)
1MWdc
1,8
Op 2014
Bonaire (Caribean Island)
11MW wind
14 MW diesel
3 MW battery
Operating
CSP: Concentrated Solar Power MSS: molten salt storage
6th Zimbabwe Mining & Infrastructure Indaba October 2014

9. RE investment forecast in the mining industry (2013-2022) – Base case
Source: “Renewable Energy for the Mining Industry Revenue by Technology, Aggressive Investment Scenario, World Markets: ,” Renewable Energy in the Mining Industry, Navigant Consulting, Inc., 2013
6th Zimbabwe Mining & Infrastructure Indaba October 2014

10. Main renewable integration issues
A power system comprising renewable energy
generation, is sensitive to production intermittence:
Frequency zags due to lack of spinning reserve
Voltage variation outside equipment
Micro Grid and Storage Solutions help to:
Balance locally Generation & Consumption
Share the load between both generation facilities
Offer new means to manage power flows
6th Zimbabwe Mining & Infrastructure Indaba October 2014

11. Steps for designing a renewable plant in mining
Energy audit to optimize the demand side :
to lower the cost of energy
to reduce energy consumption and peak demand
Analytical tools to determine the optimal amount of solar, wind and energy storage
Economic analysis
Final specification for operating rules
6th Zimbabwe Mining & Infrastructure Indaba October 2014

12. Other issues while designing a renewable plant in mining
Microgrid systems integrating the best of all technologies together lower the overall cost of energy and reduce GHG emissions
PV and wind lower fuel consumption in the range of percent, but it’s limited due to the high cost of energy storage
Geothermal can replace base load
Batteries are still expensive and should therefore be designed/used batteries only for short term intermittencies (10-20 mn)
6th Zimbabwe Mining & Infrastructure Indaba October 2014

13. The Danvest-Siemens solutions
Danvest and Siemens are working on a hybrid-diesel-wind off-grid power generation system , 5-10 MW, typical range to supply australian mines in areas of good wind resource
Hybrid PV-diesel
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How does it work?
6th Zimbabwe Mining & Infrastructure Indaba October 2014

15. Case study : Australian project
Project Details and Assumptions
12 MW average power consumption for mining site
m/s average 80 meters height
55% yearly fuel saving from hybrid installation
0.75 EUR/liter fuel (light fuel)
Cost estimation
Euros
Wind Turbine System
8x2.3MW wind turbines, Roads and hardstands
Cable connections, Foundations
Establishment of site, Management
Total Price WTG and cabeling
Danvest Power Box System
5x1.2MW Danvest Power Box System
Transport, installation and commissioning
Project management
Project development
697987
Total Capex
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Comparison of Operating expenses
Euros
Wind-Diesel with 55% yearly fuel saving
Fuel ( kWh)
Operating expenses Wind turbines
Operating expenses Gensets
Overhead
Operating expenses SYSTEM
0,10€/kWh
Diesel generators only
Fuel ( kWh)
Operating expenses DIESEL ONLY
0,20 €/kWh
Net Savings
Pay Back Time: 4,4 years
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Why working with us?
Pre/Feasibility studies
One-stop turnkey solutions including planning, engineering, installation & commissioning, and service
Integration with existing diesel generators or delivery of new diesel power plants
Delivery of wind and/or solar parks
Technology selection, sizing and delivery of energy storage
Power management for economically optimized, automated operation
Complete package including electrical balance of plant and grid integration
Fast development time
We combine best technology providers: SIEMENS, Caterpillar, Danvest, etc.
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Thank you
Our Contact : Tel:
6th Zimbabwe Mining & Infrastructure Indaba October 2014