Evaluating Renewable Energy Options for Global Mining...
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1 Evaluating Renewable Energy Options for Global Mining Sites Renewable Energy and Mining Summit September 25/26 2013 Scott Fraser Director Power Projects
Transcript of Evaluating Renewable Energy Options for Global Mining...
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Evaluating Renewable Energy Options for Global Mining Sites Renewable Energy and Mining Summit September 25/26 2013 Scott Fraser Director Power Projects
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Presentation Agenda
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My Background In Renewable Energy
Barrick Gold’s Use of Renewable Energy
Existing Applications
Under Evaluation For the Future
Key Factors to Consider
Lessons Learned and Challenges
Financial and Non Financial Factors
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My Background In Renewable Energy
Over Thirty Years with Utilities, IPP Projects, Energy Consulting and Technology Development
Two Decades ago Renewable Focus was on the Combustion of Biomass/Waste fuels, Small Hydro (including tidal) and the Emerging Wind Industry
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Liquids From Renewables
Focus of this Summit is on Renewable Electricity and Thermal Energy
Renewable Liquid Fuels Are Also A Major Renewable Energy Source
– Ethanol
– Methanol
– Bio-diesel
Future
– Algae (CO2 Capture)
– Hydrogen from Solar
– Renewable Desalination
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Policy Support For Renewables
Numerous Subsidies and Credits
Feed In Tariffs Rate Base Supported
Accelerated Depreciation
Minimum Renewable Energy Requirements
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Barrick Gold Renewable Energy
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Why Renewable Energy at Barrick
Originally The Focus Was Sustainable Development and Reduced GHG Emissions
Projects With Lower Grade Ores - Added Crushing/Grinding Resulted In Higher Loads
Reduced Use of Diesel at Sites Offers
– Cost Savings With Renewables
– Reduced Diesel Transport Risk
– Reduced Exposure to Oil Price Volatility
– Reportable GHG Reduction
Renewables While Variable are More Reliable Than Many Utility Grids In Developing Areas
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Veladero Wind Turbine 4110 meters
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Barrick Gold – Punta Colorada
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Details of Punta Colorado Site
Intended For Construction and Ramp-up Power at Pascua Lama Project
Original 10 - 2 MW Wind Turbines
Permitted For 9 more - Under Evaluation
17 MW high Efficiency Oil Fired Back-up
Access to The Chilean Grid “SIC” Region
– Surplus Sales and Spot Market Purchases
Additional Adjacent Barrick Land
– Biomass to Liquids Opportunities
– Solar
– 15,000 Hectares
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Under Evaluation at Barrick
Expansion of Punta Colorada Wind Farm
Jatropha Farms For Bio-Diesel and Char
Geothermal Opportunties In Argentina/Chile
Additional Large Scale PV Solar In Chile
Solar Thermal for Copper Processing
Reviewed Use of Brown Field Mines For Pumped Storage at Legacy Sites
Small Scale Hydro Generation Pressure Recovery in Water Supply Pipelines
Regenerative Braking Downhill Conveyer
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Geothermal South America
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Pumped Storage ‘Marmora Example’
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6 MW Hydro Turbine Pressure Recovery
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Key Factors to Consider
Life of Mine Considerations
– Once Operational Electrical Demand Is 24-7
– Energy Reliability Is Important to Profitability
– Mines Have a Finite Life 10 to 50 years
– Development Phase Very Long 10+ Years
– Energy Cost Is Increasing With Ore Grades
Variability of Renewable Energy Supply
– Responsive Back-up Supply Is Required
– Seasonal Variations Must Be Addressed
– Location is a Major Consideration
– Storage Technologies Remain a Challenge
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Lessons Learned and Challenges
Remoteness of Sites
– Difficult for OEM’s to Respond Quickly
– Data Monitoring Over Web is More Complex
– Higher Installation Costs
– Training and Staff Development
– Should Not Apply ‘First of Type”
Limited Attention to Non-Core Assets
– Reliability Suffers
– Equipment Damage Increased Service Costs
Genset Fuel Usage Due to Load Following
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Post Commisioning Follow-up
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Financial and Non Financial Factors
Difficult to Match Renewable Project Life to Mine Life
Renewable Energy Technology Evolving Rapidly vs. 10 + Years to Develop a Mine
Installations at Operating Mines Have Reduced Project Life - Short Payback Period
Application of Renewable Energy Credits less Certain than For Utility Projects
Valuation of Future GHG Credits Risky
Prediction of Future Savings Dependent of Oil Price Forecasts
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Financial and Non Financial Factors
Government Policies Re Local Content
– May Improve Project Acceptability
– Lack of Competition Can Increase Costs
Developing Country Investments In Power Sector are Generally Underfunded
– Inadequate Supply or Reliability
– Uncertain Future Price
Mining Economic Cycle (Boom & Bust)
– Risk of Mine Close Without Alternate Customer for Entire 20 - 30 year Life
– Mines Prefer Off-Balance Financing
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Conclusion - Evaluation Matrix
Development Time
Energy Cost Prediction Risk
Constant or Variable
Local Jobs
Wind 36 months Medium Highly Variable Moderate
Solar 18 months Low Highly Variable Minimal
Biomass 36-48 months Medium to High
Relatively Steady
High
Small Hydro 36 to 60 months
Low Steady to Variable
Moderate
Geothermal 48 to 60 months
High Constant Minimal
Regenerative Conveyor
60 to 120 months
Low Constant with Production
Minimal
Pumped Storage
60 to 120 months
Medium As Required Moderate
