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 08-10 October 2014

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 6th Zimbabwe Mining & Infrastructure Indaba 08-10 October 2014

6th Zimbabwe Mining & Infrastructure Indaba 08-10 October 2014 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 08-10 October 2014

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 08-10 October 2014

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 2022. 9) 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 08-10 October 2014

Declining grid-connected PV system cost 6th Zimbabwe Mining & Infrastructure Indaba 08-10 October 2014

6th Zimbabwe Mining & Infrastructure Indaba 08-10 October 2014 Economics Source: IRENA 2012 Gen: Generator, PV: Photovoltaic, Strg: Storage 6th Zimbabwe Mining & Infrastructure Indaba 08-10 October 2014

6th Zimbabwe Mining & Infrastructure Indaba 08-10 October 2014 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 - 100 MW PV - 75 MW dC MSS – 14 hrs 700-800 560 000 – 640 000 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 08-10 October 2014

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: 2013-2022,” Renewable Energy in the Mining Industry, Navigant Consulting, Inc., 2013 6th Zimbabwe Mining & Infrastructure Indaba 08-10 October 2014

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 08-10 October 2014

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 08-10 October 2014

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 30-70 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 08-10 October 2014

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 6th Zimbabwe Mining & Infrastructure Indaba 08-10 October 2014

6th Zimbabwe Mining & Infrastructure Indaba 08-10 October 2014 How does it work? 6th Zimbabwe Mining & Infrastructure Indaba 08-10 October 2014

Case study : Australian project Project Details and Assumptions 12 MW average power consumption for mining site 7.5-8.0 m/s average wind @ 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 32 107 383 Danvest Power Box System 5x1.2MW Danvest Power Box System 6 600 000 Transport, installation and commissioning 1 046 980 Project management Project development 3 489 933 697987 Total Capex 43 942 282 6th Zimbabwe Mining & Infrastructure Indaba 08-10 October 2014

6th Zimbabwe Mining & Infrastructure Indaba 08-10 October 2014 Comparison of Operating expenses Euros Wind-Diesel with 55% yearly fuel saving Fuel (45.000.000 kWh) Operating expenses Wind turbines Operating expenses Gensets Overhead Operating expenses SYSTEM 8 977 852 794 896 531 831 279 195 10 583 774 0,10€/kWh Diesel generators only Fuel (105.120.000 kWh) 19 260 242 1 140 940 Operating expenses DIESEL ONLY 20 680 376 0,20 €/kWh Net Savings - 10 096 602 Pay Back Time: 4,4 years 6th Zimbabwe Mining & Infrastructure Indaba 08-10 October 2014

6th Zimbabwe Mining & Infrastructure Indaba 08-10 October 2014 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. 6th Zimbabwe Mining & Infrastructure Indaba 08-10 October 2014

6th Zimbabwe Mining & Infrastructure Indaba 08-10 October 2014 Thank you Our Contact : tchouateheteu@yahoo.fr Tel: +32-485-914555 www.deeccconsulting.com 6th Zimbabwe Mining & Infrastructure Indaba 08-10 October 2014