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TORONTO (miningweekly.com) – Renewable power is reliable, proven and continues to offer the mining industry an attractive means to obtain lower-cost energy at remote operations, Hatch director of renewable power Michel Carreau told an audience at a seminar hosted by the Canadian German Chamber of Industry and Commerce’s Competence Centre for Mining and Mineral Resources on Friday.
The mining and renewable energy sectors must continue engaging with each other to develop joint solutions, he added. “This is a meeting of two worlds that, until quite recently, hadn’t worked together.”
Before a mining company selects a renewable component – whether wind, solar or another option – it must consider the economic viability and rate of return against the estimated mine life. The longer a mine is operational, the greater benefits renewables can deliver.
“Levels are typically fixed. For example, 15 cents per kW an hour would be a good bargain across 25 years,” Carreau said. “And while fuel costs are lower right now, remember this is just a moment in time; it will go up [in price].”
The level of power penetration by a renewable component varies; most provide mine sites with between 10% and 20% of their energy when in use. The goal of both the industries is to push this to a much higher level over the next five to ten years.
Renewables also deliver supply stability; a wind farm or solar farm does not need consumable inputs such as diesel generator sets that require fuel to be transported, sometimes across vast distances. Further, renewables help companies reduce their carbon emissions, which is popular with the wider public.
The growth in renewables’ competitive edge will spark greater uptake in the future, Carreau predicted. “When fuel costs go back up, renewables will be a key to lowering costs. And if your competitors are already thinking about it [renewables], then you need to start thinking about it.”
NEXT STEPS
But even if the advantages of renewables are readily apparent, successful adoption depends on management being willing and keen participants.
Once a company is keen to progress, it must decide whether installation and operation will be under its own auspices or through a third-party provider of renewable technology under a power purchase agreement (PPA).
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