Renewables in mining: how the mining sector is driving the diversification of Australia’s energy mix Liam Davis, Partner and Kate Swain, Partner, McCullough Robertson
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he global focus on renewable energy projects has continued to gain momentum over the last 12 months and so too, has the uptake of renewable energy projects by the mining sector, and for good reason. With the cost of renewables declining and reliability increasing, the time is right for miners to adopt renewable energy as a means to reduce energy expenses, while at the same time responding to the push for economy-wide shifts to decarbonisation.
The landscape is changing As governments around the world enact legislation designed to bring their economies in line with the goals of the Paris Agreement, companies across all industries will have to adapt to these new rules and regulations in order to remain compliant. Already, the Australian mining industry has shown support, with the Minerals Council of Australia confirming industry ambition to support the goals of the Paris Agreement, and of course the Australian Government’s release of the ‘Long-Term Emissions Reduction Plan’. Within Australia, we know that emissions produced in mining operations are being increasingly monitored and reviewed, and reducing scope 1 and 2 emissions is key to limiting extensive hurdles and regulatory burden. Currently, in numerous states, project approval requirements mandate the development authority’s consideration 42
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of a proposed mine’s emission mitigation measures, and environmental protection authorities are increasingly being challenged to have mitigation policies and measures. At the Federal level, high emitting entities face hefty administrative requirements associated with the reporting regime. Technological advances continue to reduce the cost of developing renewable energy projects and stakeholder requirements are driving an increasing corporate appetite to ‘go green’. Technological shifts have allowed renewably-sourced energy to become more generally competitive with other energy sources, and the advancement of technology including wind, solar, hydroelectric and geothermal energy is becoming an increasingly available and attractive measure within mine-site operations. So what opportunity does this represent for the Australian miners?
Photo: Peter Turnbull
