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Data-Driven Decision Making for

Renewables in Mining

By Kate Dougherty, Energy and Mines

Q&A INTERVIEW WITH Craig Palmer, Program Manager at GHD

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Decisions about renewable energy sources have reached company board and executive levels at mining companies. Renewable energy options are technically feasible, and are being assessed as part of normal business planning, according to Craig Palmer, Program Manager at GHD.

“Miners are looking at the applicability of renewable energy across the whole value chain, from mineral extraction and processing to camp and accommodation requirements,” Palmer reports.

GHD is a multinational company that provides technical consulting and management services for engineering, architecture, environmental, and construction projects. With mining and renewables a core focus for GHD’s business development in Australia and globally, the company has a unique understanding of current opportunities and challenges for these projects.

Energy and Mines spoke with Palmer about why some miners are beginning to explore renewables, and how best to integrate them into new and existing operations. Palmer is chairing a discussion with remote mining leaders at the upcoming Energy and Mines Australia Summit on June 29-30 at the Pan Pacific Perth.

Data is key to for renewables for mines, according to Palmer, and there’s more data available than ever. “Data is everything, and core to developing a viable business case,” he advises. “Using detailed operational and renewable resource data to undertake accurate techno-commercial modelling and factual analysis enables a business case to withstand scrutiny and ensure proof of concept.”

The importance of data goes far beyond convincing decision-makers, however. It’s also critical to the design process. “Designing for site conditions to get the optimum performance of certain renewable technologies is paramount.”

Energy and MInes: What do you see as the main drivers for remote mines to consider renewables and storage technologies today?

Craig Palmer: I would divide this question into four areas: social, technological, economic, and political drivers.

Social drivers, [as] I see [them], are the strategies underpinned by corporate social responsibility and environmental themes, which increasingly include statements around the promotion and inclusion of renewable energy and carbon offset policies into mining operations.

Technological drivers are framed by system security and comfort around reliability, in comparison to thermal power generation technologies. As renewable technologies mature, improvements in performance of renewable hybrid systems and redeployability of renewable systems mean the concerns and opportunities receive increased attention. Energy and fuel efficiency drivers also open up opportunities for energy storage options.

The cost of fuel is probably the biggest economic driver for the

By Kate Dougherty, Energy and Mines

Data-Driven Decision Making for Renewables in Mining

consideration of renewables, and the inclusion of energy storage has the potential to optimise the offering of intermittent renewable technologies and minimise fuel consumption. Mine life also has a significant bearing on consideration of renewable technologies, as economic payback needs to be achieved over the projected mine life.

Political drivers include changes in renewable energy targets and carbon pricing. Australia is committed to achieving at least 33,000 GWh of electricity from renewable sources by 2020.

E&M: How is the recovery of commodity prices changing the energy strategy for mines?

CP: Miners are continually looking for cost savings. Commodity prices, whether upward or downward, have a direct link to energy strategy. With the historical downturn in global commodity pricing in recent times, miners have increased their attention to cost reduction efforts, which means that energy costs are also scrutinized. Power strategy considerations often coincide with asset investment requirements such as upgrades, refurbishments, expiry of IPP contracts, or in some cases plant retirement. The pallet of options available to miners has broadened, and we certainly see an increasing appetite for incorporating renewables into the generation mix, provided a reasonable payback can be achieved commensurate with the expected life of the mine.

E&M: Is this opening up new opportunities for alternative energy for mines, as more mines invest in new operations and expand production?

CP: Yes, definitely. Miners are looking at the applicability of renewable energy across the whole value chain, from mineral extraction and processing to camp and accommodation requirements. New operations in particular generate increased opportunities because assessment of alternative energy options can be considered over the whole of mine life.

“The attention given to renewable energy for mining has reached company board and executive decision-maker levels. Renewable energy options are technically feasible and being assessed as part of normal business planning.”

Craig Palmer Program Manager GHD

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With the emergence of big data, better knowledge about power loads, operational performance, and the state of existing infrastructure helps to appropriately inform the sizing of renewable energy technologies for evaluation.

E&M: More locally, what power challenges are mines in Western Australia (WA) trying to address, and what solutions are they exploring?

CP: Clients are learning from their existing, operating mines and exploring technical solutions by undertaking asset performance modelling, which includes the option of renewables. We see that clients are mapping out their power network in detail and standardising SCADA and protection systems, which helps them improve their asset performance. Key elements of potential solutions include: load management (forecasting and peak management), appropriate spinning reserve, optimising fuel transport costs, and improving system reliability and availability, which also covers supply chain logistics, considering that some of these mine sites in WA are hundreds of kilometres away from major cities and towns.

E&M: What are some of the technical issues that can come up when trying to integrate renewables with traditional power systems for mines?

CP: A major technical issue we have observed is the implementation and integration of plant control systems connecting new and existing plants. When we talk about control, the philosophy and limitations of both the new and old systems need to be well understood by all parties—in particular the OEM, contractor, and operator. It is crucial that the limitations and capabilities of each technology (e.g., batteries or solar PV) are defined and made clear during the design stage. Items such as response times and grid support functionalities are important.

Compliance with local mining regulations in addition to global/national technical standards is also critical. Also ensuring protection grading is coordinated between new and existing electrical infrastructure. Designing for site conditions to get the optimum performance of certain renewable technologies is paramount.

E&M: What advice would you offer a miner who is currently trying to explore alternative power options?

CP: Data is everything, and core to developing a viable business case. Using detailed operational and renewable resource data to undertake

“Data is everything, and core to developing a viable business case. Using detailed operational and renewable resource data to undertake accurate techno-commercial modelling and factual analysis enables a business case to withstand scrutiny and ensure proof of concept.”

“Designing for site conditions to get the optimum performance of certain renewable technologies is paramount.”

accurate techno-commercial modelling and factual analysis enables a business case to withstand scrutiny and ensure proof of concept. From a practical perspective, engaging with other miners and industry stakeholders uncovers the finer points of project lessons learnt—what was done well, what was easy, what could have been done better, and what should be avoided—to afford any aspiring miner a perspective on all issues that need to be addressed.

E&M: What are you looking forward to at the Energy and Mines Australia Summit on June 29-30?

CP: I am looking forward to hearing about the experiences and lessons learnt from international projects, and collaborating with our international guests who will be visiting our wonderful city.

10th Summit focused on renewables for mines 50+ senior mining and renewables speakers Unparalleled networking with senior mining energy decision-makers Critical insight on renewables for remote and grid-tied mines