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Energy markets are undergoing a massive transformation as governments around the world move from fossil fuels to the integration of renewable energy. This trend is clearly visible in the mining industry, as evidenced by recent energy projects in South America and Australia.
According to Bloomberg New Energy Finance, in 2018, mines purchased 1 GW of renewable energy generation assets; this amount tripled to approximately 3.5 GW in 2019, of which 90% are hybrid solutions.
The demand for electricity for the mining industry is expected to increase significantly in the coming years as increasing mine depth, harder rock, and increased water desalination needs lead to greater energy intensity for the industry. . While the electrification of operations and vehicles is reducing certain emissions and generating cost savings, stakeholder targets to reduce emissions as part of EESG (Environmental, Economic, Social & Governance) plans are increasing participation renewable energy mix, which of course requires high flexibility in one generation to balance intermittent renewables.
In Africa, the mining sector faces inherent challenges, with power grid access and grid reliability being the most important. Since most of the electricity supply comes from conventional power plants (coal, oil or gas), operators face the challenge, on the one hand, with highly volatile operating expenses due to rising fuel costs, and on the one hand Inefficient and unreliable power supply leading to costly production interruptions and lost revenue. in the other one. Poor infrastructure and the availability of water compound the challenges for mines, particularly in remote and off-grid locations.
The combination of these trends and particularities of African markets is setting the stage for the integration of renewable energy for the mining sector. A recent McKinsey study [1] showed that switching to renewable electricity sources is increasingly feasible, even in off-grid environments, as the cost of electricity storage will decrease by 50% from 2017 to 2030. This is especially good news for Africa, where the cost of solar power generation could be among the lowest in the world.
It also represents a great opportunity for operators in Africa, where Wärtsilä has developed a range of competitive strategies to offer efficient and reliable power supply solutions to support the mining sector on its way to a renewable energy future.
In Tanzania, the Geita gold mine was experiencing reliability issues and power shortages as its old power plant was reaching the end of its useful life. It needed a reliable power generation solution to support its growing operations. Wärtsilä delivered a flexible 40 MW power plant and agreed to a 10-year operation and maintenance (O&M) package, integrating technology with life cycle services to provide “always on” power. The plant ensures an uninterrupted power supply off-grid, eliminating lost revenue from power outages, while the O&M agreement is tailored to the mine’s daily performance requirements.
Maintenance schedules are optimized to minimize costs and production downtime and improve fuel efficiency. As a result, fuel savings of around 4%, representing US $ 2 million, were achieved in the first year of operation. The flexibility of the facility will also facilitate the transition to renewable energy during the life of the project.
In Burkina Faso, Wärtsilä has delivered a 15 MWp solar photovoltaic (PV) power plant to independent power producer (IPP) Essakane Solar SAS, which supplies the Ekkasine gold mine. The solar photovoltaic plant was built alongside a 55 MW power plant that runs on heavy fuel oil. The engine power plant provides backup, while the solar farm produces power during the day. The ability to control and optimize the use of solar photovoltaic energy and motors allows the gold mine to reduce its fuel consumption by an estimated 6 million liters per year and its annual CO.2 emissions of 18,500 tons.
Energy storage technologies are the real game changer
The integration of energy storage technologies will be a real game changer, allowing the industry to take full advantage of cheap and abundant solar energy. They have the unique ability to provide a buffer between supply and demand by delivering or storing energy when it is most needed.
They will become the key component of the stable infrastructure necessary to improve the reliability and security of the network. Hybrid solutions, which combine flexible thermal generation with solar energy and storage operations, are now a realistic and cost-effective solution, as the Levelized Cost of Electricity (LCOE) is lower than ever and storage costs will be reduced.
In Mali, at the Fekola mine, located in a remote area with no connection to any larger network, Wärtsilä is providing a hybrid off-grid solution to provide and maintain the stability of the microgrid. The project combines a 30 MW solar photovoltaic plant, a 17.3 MW / 15.4 MW energy storage facility and GEMS, Wärtsilä’s advanced energy management system, with the existing 64 MW power generator in the mine to improve power reliability, reduce heavy fuel consumption, save costs and reduce CO2 emissions.
GEMS is an innovative tool that uses intelligent algorithms to distribute energy storage and multi-generation assets (thermal and renewable) with the appropriate reserve level to maintain high reliability of the mine network. Gensets shut down as solar production increases and restart based on forecast data, including load demand and weather. The sophistication of GEMS allows optimization of energy production to ensure the lowest LCOE.
In addition to ensuring the stability of the microgrid, the project is expected to generate annual long-term savings of 13.1 million liters of heavy fuel oil and reduce the mine’s carbon footprint by approximately 39,000 tons per year. This hybrid storage project is the first of its kind in Mali and in the mining sector, demonstrating the growing case for clean energy and its economic and sustainable potential for mines in Africa and elsewhere.
Increasing energy reliability and reducing operating costs are essential for the mining sector. The optimal solution to solve energy challenges is to enable fast startup with high off-grid availability, high fuel efficiency, fast load tracking, and part load efficiency to enable high penetration of renewables.
The answer lies in a combination of advanced flexible power generation strategies and the smart use of renewable energy to ensure efficient and reliable power delivery to remote off-grid locations. Advanced energy management systems are the key technological element necessary to withstand the enormous energy inputs from intermittent sources.
With a broad portfolio of energy storage and flexible solutions for energy-intensive operations, in Africa and the rest of the world, Wärtsilä is the partner of choice to help the mining sector achieve its sustainability and cost-saving goals.
About the Author
Tarik Sfendla is Market Development Manager at Wärtsilä Energy Business. He is in charge of stakeholder relations in the field of energy in Africa, monitoring market developments and modeling the electricity market to optimize additional capacities and LCOE. Together with the team, he plays a key role in developing energy business strategies in Africa, such as assessing the potential of new markets and developing strategic partnerships in the region.
