Mine Power: Going Off-Grid

247Solar Inc. is hiring for a position related to Mine Power: Going Off-Grid in Morgantown, WV. The role focuses on the transition to on-site renewable energy for mining companies, driven by decarbonization and cost reduction. With significant investments in solar and natural gas, the shift aims to enhance energy reliability and mitigate costs. The position emphasizes the economic advantages of renewable energy solutions in the mining sector.
SOLAR INSIGHTS / Solar Insights | STORIESSearch for: SearchMine Power: Going Off-GridDecarbonization and economics drive shift to on-site renewablesOff-grid mines have always had to generate their own power. Now, information from Global Data indicates that even grid connected mines are adding on-site generation, typically from renewable sources. This is allowing them to both decarbonize their operations and lower their power costs.In a recent issue of Mine Magazine published by Global Data, author Heidi Vella notes that energy consumption is a major expense for mining companies, comprising approximately 30% of total cash operating costs. To adapt, data collected for around 3,000 mine sites shows a trend towards miners investing in decentralized on-site power supply.Emissions reductionsAt present, says Vella, nine of the top ten publicly listed mining companies have set scope 1 and 2 net-zero goals for 2050, with reduction ambitions to meet in the interim. David Kurtz, director of mining & construction at Global Data, says, “When it comes to reducing their emissions, mining companies have really only got a couple of levers to pull – one is shifting to renewable power.”Many miners are investing in natural gas as an alternative to diesel or other heavy fuels, but also in renewables, which are becoming increasingly affordable. For example, writes Vella, “the cost of solar power has dropped by nearly 90% over the last decade and the cost of batteries is also steadily falling.”“Our data doesn’t cover the whole market, but it gives an indication thatnew on-site power under development on minesis much more weighted towardsnatural gas andsolar power,” says Kurtz.“[A]s the cost of renewables such as solar and batteries comes down and becomes more reliable it is a more feasible option for sites,” he adds.Economic advantagesVella quotes Eric Saderholm, formerly Newmont Mining’s exploration manager for the Western US and now managing director of exploration for American Pacific Mining, who says “on-site power investment is ramping up, driven by both the bottom-line cost and environmental responsibility.”Saderholm cites the example of Barrick’s Nevada Gold Mines, which has invested in a 200MW solar power plant system. “This makes sense in Nevada,” he says, “because mines here will likely have a 50-year lifespan, so can absorb their capex expenses down the road, but there is also 300 days a year of solar energy, clear skies; it is almost a no brainer.”Reliability and securityAnother driver of the shift to on-site power is the need for reliability and security. Bas Mutsaers, global strategy, technology and marketing lead at Schneider Electric, says, “For industries such as mining, uninterrupted power is crucial to maintain operations and avoid costly downtime … For example, mining companies that operate in remote areas often face unreliable grid connections, which leads them to invest in on-site power solutions to ensure continuous operation.”Mutsaers also cites financial benefits around energy independence. “On-site power generation can help companies mitigate rising energy costs or contractual limits and reduce exposure to price volatility in energy markets,” he says.“At the end of things, you want to provide your investors with a return”, says Saderholm. “However, if the bottom line of profit indicates that you should go totally renewable, or at least partially renewable, I think mining companies will make the right decision.”A ROUND-THE-CLOCK CLEAN ALTERNATIVE TO FOSSIL FUELSAchieving high levels of renewable energy is particularly challenging for off-grid mines in remote locations because intermittent PV or wind with costly batteries still require dirty, expensive diesel for backup. Many mines also require high-grade heat for on-site processing and other uses. 247 Solar offers the only renewable energy technologies that:Integrate seamlessly with PV or wind to provide 24/7 dispatchable baseload powerProvide industrial grade heat up to 970 ℃ (1800 ℉) for ore processing, steam generation and other applicationsProvide their own backup by burning almost any locally available fuel to produce power even…