September 11, 2018 Read More →

Energy-intensive mining companies look to renewables for cost savings

PV Magazine:

Being one of the most energy-intensive industries, the mining sector’s shift away from fossil fuels is of the utmost importance for global decarbonization efforts. Fortunately, miners have begun to understand the value of renewables.

A new report by Fitch Solutions Macro Research, a unit of Fitch Group, shows that the mining industry’s transition to renewables has begun and is poised to pick up the pace in the coming years.

Presently, the majority of mining operations globally continue to rely on traditional power sources, mainly fossil fuel-based grid power or off-grid diesel-generated power, while accounting for up to 11% of global energy consumption. But, with 1 GW of renewables already built at mining sites across the world, and another 1 GW in the pipeline, the transition appears to be well underway.

According to the Fitch report, the main reasons behind the shift away from traditional fuel sources to renewables among miners are the reduction of renewable power costs and the prospect of more reliable power supply, followed by environmental, social and governance (ESG) concerns.

Solar PV and wind are leading the way in installed renewables generation among mining companies, accompanied by solar thermal, with 37%, 59% and 4% share in 2017 respectively, the report finds.

Chile is set to remain a global leader in regard to the number of mines adopting renewables and the total installed wind or solar capacity. Up to nine different mining companies have installed either wind or solar capacity in the country to date, including copper mining giants Codelco and Collahuasi and Antofagasta Minerals, which boasts 191.5 MW of solar PV capacity at its operations, the report notes.

More: Mining sector to rely increasingly on renewables, report finds

Comments are closed.