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Embarking on the 2050 carbon neutrality through decarbonisation of the mining sector
Anglo American thus analysed its mine site power requirements, coupled with its diesel consumption, and have applied a regional ecosystem decarbonisation approach to how it looks at renewable energy systems and their benefits. As a result, the company identified an energy mix that allows it to be carbon neutral and have a very different footprint – enabling an end-to-end integrated green hydrogen production, fuelling and haulage system for mine sites – the nuGen™ Zero Emission Haulage Solution (ZEHS) project. As a pilot of this ambitious project, the company will unveil a hydrogen/battery hybrid haul truck at its Mogalakwena mine in Limpopo – the first time a truck of this size and load capacity has been converted to run on hydrogen. The gas will also, in the near future, be produced on-site using renewable power.
A unique challenge requires teamwork and Anglo American knew it would benefit from the help of others. Across its business, it recognises the importance of working with specialist partners to support its technology and sustainability goals. This partnership approach is at the heart of FutureSmart Mining™. For the nuGen™ project, Anglo American have worked with some of the world’s leading creative engineering and technology companies, such as Engie, First Mode, Ballard and NPROXX, to develop the proof of concept. This ambitious project marks the first time a 220 ton truck with a 290 ton payload will be converted to run on hydrogen. The truck is a 2MW fuel cellbattery hybrid as it is the best available technology combination for this specific use case. A hydrogen fuel cell will provide roughly half of the power
and a battery pack the other half, allowing Anglo American to recover energy during braking events.
nuGenTM ZEHS project to be deployed at Anglo American open pit sites
By 2030, Anglo American aims to continue the deployment of the nuGenTM ZEHS project across its open pit sites, converting all its diesel-powered ultra-class mine haul trucks at these sites to green hydrogen. In addition, the company is exploring switching smaller heavy-duty vehicles and light duty vehicles to hydrogen and fuel cell technology.
The technologies and capabilities that Anglo American is developing provide opportunities to go beyond direct mining and haulage applications. Its nuGen™ project team has also partnered with Aurizon, Australia’s largest rail freight operator, to study the potential in its business, with a goal of building a prototype locomotive in 2023. This project offers a zero emission solution to the heavyduty transport sector, going far beyond Anglo American's own haul truck fleet.
Innovative, clean and independent power system
Across the entire mining industry, Anglo American knows it must play its part in the transition to a low carbon economy, both through the essential metals and minerals it produces, and how it produces them. Innovative, clean and independent power systems, such as the nuGen™ ZEHS project, offer a significant part of the emissions solution.
Aligned with Anglo American’s Purpose, the company recognises that its own resilience to climate change is not enough. It also has a role in supporting its host communities to thrive in the transition to a low carbon world. The company continues to explore what mining can do to help ensure a ‘Just Transition’ – one that considers the impacts of this change on employees and communities.
Anglo American’s support for the creation of a regional renewable energy ecosystem for its host countries, facilitated by projects like nuGen™, not only contributes towards decarbonising its own business but also serves as a catalyst to support countries’ own overall decarbonisation journeys and ambitions for a Just Transition.
nuGen™ is initially focused on decarbonising mine haulage and building onsite hydrogen production. It will then expand to build green hydrogen ‘clusters’ to export hydrogen and oxygen to offsite applications, thereby accelerating decarbonisation around its operations and developing opportunities for new businesses and jobs locally, as well as in the new supply chains this will create.
A recent study, spearheaded by South Africa’s Department of Science and Innovation, found that establishing a “hydrogen valley” anchored in the platinum group metals-rich Bushveld geological area in South Africa could add more than $3.8 billion to South Africa’s GDP by 2050, while creating more than 14 000 jobs per year.
Anglo American believes that the provision of new sources of clean and reliable energy could provide a stimulus for wider socio-economic benefits for businesses and communities across
many host countries – supporting long-term, sustainable economic growth.
Embarking on the 2050 carbon neutrality
through decarbonisation of the mining sector
There is a common misconception that the mining sector cannot conduct environmental stewardship, but Exxaro has proven otherwise, argues Abel Sakhau, Environment and Climate Change Manager.
Climate change is undoubtedly one of the defining global challenges of our generation. It is disrupting national economies, weather patterns are becoming extreme and livelihoods, especially of the most vulnerable, are threatened. We are experiencing a growing trend where investment community and banking institutions are reviewing their financial support for fossil fuel assets. Through their Nationally Determined Contribution (NDCs), governments are committing to reducing global greenhouse gas emissions to limit the temperature increase to well below 2°C, preferably to 1.5°C by 2030.
The Covid-19 pandemic may have stalled national plans to tackle climate change and reduce emissions. As such, the COP26 summit in Glasgow 2021 brought parties together to accelerate action towards the goals of the Paris Agreement and the UN Framework Convention on Climate Change.
To deliver on the Paris Agreement, the global economy needs to shift to low carbon technologies in the mining, energy, transportation and agricultural sectors. Companies, banks, insurers, and investors must adjust their investment strategies and business models to develop and implement credible plans to transition to a net-zero carbon economy.
The mining sector has been facing pressure from governments, investors, and society to reduce carbon emissions as the world moves towards a low carbon future. Renewable energy is becoming an inexpensive source of electricity; many of the world's carmakers are shifting to make only electric and hybrid models; countries around the world are starting important work to protect and restore biodiversity; cities, states and regions around the globe are also committing to the net-zero emissions target by 2050.
According to data from McKinsey, mining is cited as being responsible for 4% to 7% of scope 1 and 2 greenhouse gas (GHG) emissions globally. The mining industry is energyintensive, using diesel and fossil fuel-generated electricity to drive scope 1 and 2 emissions. Decarbonisation of the power sector and diesel mobile mining vehicles presents the mining sector with an opportunity to meet the net-zero target by 2050.
In 2017 South Africa had one of the most emissions-intensive power sectors, ranked 25 globally, and is therefore particularly vulnerable to the transitional risks of climate change.
Exxaro has embraced the need to decarbonise and build resilience to the impact of climate change
Exxaro has embraced the need to transition its business model and decarbonise and build resilience to the impact of climate change. The organisation believe a "Just Energy Transition" for South Africa must address present and historical inequality, create jobs, reduce poverty, restore biodiversity and build resilience against physical risks of climate change, and most importantly, ensure that no one is left behind.
Exxaro's Climate Change Response Strategy is integral to its Sustainable Growth and Impact Strategy aligned to the relevant UN Sustainable Development Goals and designed to ensure it can manage the direct and indirect climate
