Risks and rewards for the mining sector in the transition to - - PowerPoint PPT Presentation

Risks and rewards for the mining sector in the transition to renewable energy

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Darren Miller 19 June 2019

Overview

About ARENA Importance of mining sector Quick stocktake on renewable energy costs and momentum Examples of key ARENA projects Short and long term opportunities for mining sector

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31 March 2019

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17,500 PJ

Mining sector energy production

820 PJ

Domestic electricity

21:1

Mining sector energy : Domestic electricity

669 PJ

Source: “Australian energy statistics”, Department of the Environment and Energy, 2018.

Declining cost of renewables

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Source: IRENA Renewable Cost Database and Auctions Database.

Renewable energy opportunities for the mining sector

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— 1 — Managing operational costs and logistics

Onsite and offsite renewable electricity Replacements for mobile diesel Replacement for process heat

— 2 — Emerging opportunities for low-emissions energy, materials and supply chains

Renewable energy exports, lower embodied emissions materials, and enhanced local value adding

Renewable energy economics for mines are improving

Source: “An Introduction to ARENA’s Remote and Regional Projects”, ARENA 2017

Degrussa Initiated: 2014 PV + battery Grant funding: 53% RE fraction: 20% Gold Fields Port Gregory Initiated: 2019 PV + battery + wind Grant funding: 12% RE fraction: 50-60% Initiated: 2019 PV + battery + wind Grant funding: 27% RE fraction: 60%

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Managing stationary energy costs with PPAs

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ARENA has funded the Business Renewables Centre which assists companies with corporate power purchase agreements (PPAs). 2018 was a peak year for corporate PPAs with over 1.8 GW of solar and wind contracted. All of this is grid connected.

Battery electric for transport

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85% cost reduction since 2010. 18% learning rate.

Hydrogen electric for transport

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Source: National Hydrogen Roadmap. CSIRO, 2018.

Apple is committed to advancing technologies that are good for the planet and help protect it for generations to come.

Apple CEO, Tim Cook

... the customers of our customers want to have full traceability on their products, and they want to make sure they have a carbon- friendly product.

Rio Tinto CEO, Jean-Sebastien Jacques

Global push for renewable energy and low- emission materials

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Energy-intensive value-adding opportunities

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Source: “The hydrogen opportunity for Australia”, McKinsey & Company, presentation to Australian Energy Week, 2019.

• The mining industry is important to Australia’s future wealth and

the global transition to renewables presents both risks and rewards.

• Mining companies are acting now to manage operational costs

and respond to emerging supply chain sustainability requirements.

• The potential for the resources and mining sector to embed and

export renewable energy is immense and could help usher in new export markets.

Conclusion

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Darren Miller Chief Executive Officer

e: darren.miller@arena.gov.au

Thank you