Navigating the complexity of mine decarbonisation

When it comes to powering mines, renewables are clearly the future — but they come with a steep learning curve. Andrew Drager, Business Development Manager, Energy Solutions Power at APA, shares his advice on how to leverage bundled energy solutions to achieve decarbonisation goals without compromising on reliability.

Energy and Mines: What is the ideal mix of large-scale renewable solutions that miners should consider to help achieve their decarbonisation ambitions?

Andrew Drager: There is no question renewable energy generation is stepping up at ever-increasing rates.

Wind and solar are clearly the primary technologies but the optimum mix will be site-specific, depending on factors such as site wind speeds, solar irradiance, location, mine life and existing conventional firming capacity.

However, renewables are intermittent with wind generation capacity factors typically 40% to 50% and solar around 20% to 30%. That’s why a mix of wind and solar with gas firming is essential to provide the most affordable, reliable and lowemissions energy.

E&M: What are some of the challenges of developing largescale renewables and how can miners best navigate the enormous complexities of decarbonising their operations?

AD: There are a number of challenges facing miners in decarbonising their operations, including the cost of deploying high-penetration renewable energy, the complexity of firming

intermittent renewables, and price certainty with current supply chain and resource constraints, especially given the rest of the world is aggressively competing for these very same resources.

Large-scale renewables such as wind and solar are an excellent tool for meeting decarbonisation targets but often come with a few lessons along the way.

Partnering with industry experts is a great way to avoid an otherwise steep learning curve – long-term owners and operators of renewables and energy infrastructure can provide guidance and modelling on different solutions and help determine the optimal decision.

A flexible, data-centred approach is beneficial, looking for the optimum level of renewables penetration to match each site and budget.

Navigating the challenges of decarbonising the mining sector today, will determine success of their transition to a lower emissions future in 2030 and beyond.

E&M: How can hybrid or bundled energy solutions help miners achieve ambitions to deliver energy that is reliable, affordable and low emissions?

AD: Put simply, bundled energy solutions will help the mining sector achieve three outcomes – energy that is reliable, affordable and low emissions.

There is no doubt that reliability is key to introducing renewables. And from an operational perspective, bundled solutions can deliver simplicity and accountability.

E&M: What experience does APA have in developing largescale renewables?

AD: APA is a leading Australian energy infrastructure business with $22 billion of renewables and electricity and gas transmission assets. This includes a number of utility-scale wind farms and solar farms connected to the grids in Western Australia and on the East Coast within the National Electricity Market.

APA also owns and operates a number of microgrids including at the Gruyere mine where APA integrated a 13MWp solar farm and a 4.4MW/4.4MWh battery energy storage system (BESS), as well as the Mount Isa combined cycle power station where APA is integrating a 100MWp solar farm.

These microgrids leverage the existing gas supply infrastructure to manage the variability associated with renewable energy and ensure the reliable supply of electricity to the mine. The microgrids have reduced the cost of energy and reduced associated emissions.

E&M: What are some of the challenges and complexities you have overcome in partnering with your mining customers to deliver bundled renewable energy solutions?

AD: Gruyere is supplied power from a natural gas power station and pipeline owned by APA and was expanded to include solar PV and BESS.

A collaborative and transparent approach with the customer overcame complexity and allowed for the lowest cost and shortest delivery timeline, particularly considering the challenges of the COVID lockdown period.

At the 100MWp solar farm in Mount Isa, APA undertook all development activities, contracting the output to three different mining companies in conjunction with firming from APA’s gas power station as a single bundled service. This ensured economies of scale while providing the customers with the simplest and lowest cost solution.

The success of these projects was built on a collaborative and transparent approach with a good alignment of interests among all parties.

APA brings the skills and capability in infrastructure development and operation. And as a listed-Australian business, we’re playing an active role in supporting our customers to decarbonise their operations and achieve their net zero ambitions.