Deploying battery energy storage systems in mining

It is our experience in microgrids that shapes our vision of the future grid system, one that is modular, decentralised and smaller, especially in emerging areas like mining operations. We are witnessing a rapid evolution in infrastructure due to demand for more electrification.

Power systems in mining and other industries are seeing a major structural transformation as renewables and energy storage costs continue to decline and global pressure to mitigate CO₂ emissions remains strong. For off-grid mining, renewable energy and storage technologies present an ideal opportunity not only to improve the mine’s environmental footprint, but also reduce energy costs while improving power quality.

We are seeing a strong drive to optimise energy across mines, including solutions for e-mobility and rapid charging.

Incremental hybridisation for lower carbon and a lower energy cost future with renewables and energy storage, is the goal for many mining operations.

The mining industry is energy-intensive with power consumption accounting for 15% to 40% of a mine’s total operating budget. Most mines, especially those located in remote off-grid regions, rely heavily on diesel or gas generators for power. Mines are also under severe scrutiny to follow local and international environmental regulations while working towards achieving net zero emissions from their operations.

The incorporation of electric-powered haul trucks is a huge opportunity for the mining industry. Designing a solution that can integrate battery-powered equipment with existing mining processes, without disrupting current (non-stop) operations, will be critical to achieving emission reduction targets.

In the past, the key energy consideration for mining focused on ensuring the power was “always on” to maintain productivity. This has changed recently with the introduction of renewable energy options and pressures to reduce CO₂ emissions. Today the key is finding the right balance between the two.

To help future-proof against rising fuel costs, mines are now adding renewable energy sources and storage technologies to run mining operations, while improving power quality efficiently and safely. These include:

• Adding BESS to improve overall generator operational efficiency and reduce maintenance costs.
• Adding BESS to off-grid mine sites for virtual spinning reserve, which has one of the most compelling businesses cases for storage and paybacks typically under 5 years.
• Locally installed solar arrays which deliver the largest reduction in fuel consumption and levelised cost of energy (LCOE), while maintaining a healthy internal rate of return. Some mine operators are already using their own land adjacent to mines, to generate solar energy that is then used to power mine operations. These mine-owned projects can then be scaled up and tied to the grid to sell excess power back to local communities.
• Solar and wind energy in combination with BESS are clear pathways for the energy transition in mining, while meeting energy production needs for long-term growth. The right integration of these different components is key to success.

Hitachi Energy helps customers utilise BESS to address several challenges converging at once by:

1. Minimising OPEX significantly through reduced use of fossil fuels, such as diesel and gas
2. Ensuring high power quality to supply off-grid mines with renewables
3. Ensuring continuous mine operations and maximising productivity
4. Minimising dependency on grid power supply
5. Complying with environmental regulations
6. Becoming energy self-sufficient.

Overall, mining companies can start transforming their mines today as renewables, specifically solar PV, can now deliver a lower LCOE than diesel. Deployment of solar PV with BESS, for example, is an excellent hedging solution against diesel or gas price increases and/or future carbon costs.

Sandfire’s DeGrussa’s Mine in Western Australia. Built in 2016, the hybrid solar, diesel and energy storage system has reduced Sandfire’s CO₂ emissions by 30,789 tons and offset 11 million litres of diesel. In addition to the environmental benefits, the project has provided a blueprint for the adoption of renewable energy at mine sites and remote communities around the world, and has been widely showcased as a success story on how to integrate renewables at mines.

Alinta Energy is supplying Roy Hill remote mine at Newman in Western Australia. This is one of the largest microgrid installations in the world and has been operating since 2018. Alinta Energy needed a reliable and stable power supply to reduce interruptions, emissions, and fuel costs at the Roy Hill mine site. Hitachi Energy’s energy storage and automation solution delivers a reliable and stable power supply that ensures continuous operation and increased energy efficiency. This system had a payback of less than 5 years for the operator.

Fortescue Metals Group (FMG) is part of a group building Western Australia’s largest network-integrated BESS, featuring Hitachi Energy’s PowerStore^TM. This is an example of FMG’s larger goal of achieving carbon neutrality by 2030.

The Indo Tambangraya Megah (ITM)’s Bontang Mine in Indonesia relied entirely on fossil fuels for their operations. Now, the mine has the largest microgrid in the region with the integration of solar and PowerStore^TM BESS, dramatically reducing fuel consumption and CO₂ emissions. The new technology enables the mine to maximise the use of renewable energy, driving energy efficiency, sustainable growth, and improved reliability.

Advanced (grid forming) inverters are a key transformative technology for power systems around the world, providing the most effective performance today and future proofing the power system for high levels of renewable energy penetration in the future. While advanced inverter technology has gained significant interest over the past 18-24 months, Hitachi Energy has been delivering this technology for more than a decade, including at many mine sites.

Hitachi Energy has a long history with more than 250 years of combined heritage providing energy solutions to mining operations, utilities, and remote communities — anywhere people want clean, low-cost, reliable and stable energy. More recently, Hitachi Energy has evolved to focus on energy solutions that support and enable the clean energy transition.

Mining companies have a great opportunity ahead to take advantage of new technologies and techniques that can help them achieve their sustainability goals, while continuing to deliver strong financial performance.

Juergen Zimmermann heads Business Development and Technology for Hitachi Energy’s Grid Edge and Microgrid Solutions business in Australia and New Zealand and has been involved in the development and construction of microgrids for over 30 years. He is responsible for developing new projects and innovative solutions for off-grid and grid edge microgrids as well as deployment of Virtual Synchronous Machines in combination with battery energy storage, to stabilise large power systems.

Juergen’s project experience includes the first large scale grid forming battery system at Dalrymple in South Australia, as well as the Alinta Newman Battery in Western Australia and Woodside’s offshore Goodwyn battery energy storage system (BESS), all using Virtual Synchronous Machine technology.