reducing mining’s energy costsworldcongress.energyandmines.com/files/emwc_sunshift_for... ·...
TRANSCRIPT
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Lewis Cowper, Business Development Manager Energy and Mines World Congress, November 2017
REDUCING MINING’S ENERGY COSTS
WITH MEGAWATT-SCALE SOLAR
AND FLEXIBLE PPAs
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Miners have country-sized energy demands
Source: SunSHIFT, CIA, Companies
Czech Republic60 TWh, 43rd
Ireland23 TWh, 69th
Ghana8.6 TWh, 99th
Belarus30 TWh, 61st
Denmark29 TWh, 62nd
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Sri Lanka12 TWh, 87th
Georgia12 TWh, 86th
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=Mozambique12 TWh, 82nd
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Source: Bloomberg New Energy Finance
Global Primary Energy Supply (MTOE)
MTOE = million tonnes of oil equivalent
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Source: Bloomberg New Energy Finance
Global Primary Energy Supply (MTOE)
MTOE = million tonnes of oil equivalent
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Unsubsidised LCOE with fuel price sensitivity
Source: Lazard
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Solar and wind at mines
Source: SunSHIFT (June 2017)
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Solar and wind at mines in Australia
Source: Geoscience Australia, SunSHIFT
DeGrussa, 10.6MW
Sandfire Resources
Mt Cattlin, 0.11MW
Galaxy Resources
Weipa, 1.2MW
Rio Tinto
Operating mine with large-scale solar PV
Gas pipeline
Electricity transmission line
Operating mine
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Image credit: Clean Energy Collective
Permanent
Long-term
Image credit: APR Energy
Movable
Short-term
The challenge
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A fundamental problem
Contract term (year)
Power price required for investment
($/MWh)
Power price =Capex + Cost of Capital
Term
5 10 15 20 25
Conventional solarover 5 years
Conventional solarover 10 years
SunSHIFT solar PVon a Flexible PPA
SunSHIFT solar PVover 5-year cycles
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The solution
Movable
Short-term
Movable
Short-term
Image credit: SunSHIFTImage credit: APR Energy
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Engineered byA world leader in the pre-fabricated design and delivery of remote projects.
Automated by A world leader in power and automation hardware and support.
Powered by A world leader in durable, high-efficiency solar PV panels.
majority owned by
Technology partners
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Minimum Viable Product
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Minimum Viable Product
Source: Geoscience Australia, SunSHIFT
Operating mine with large-scale solar PV
Gas pipeline
Electricity transmission line
Century Mine, New Century ResourcesCombabula GPF, APLNG
Deployment #1 Deployment #2
SunSHIFT deployment
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Megawatt-scale solar PV Blocks
1MW
SunSHIFTBlock
SunSHIFTSystem
N×1MW
Hybrid energy system
Integrated solar PV, generators, energy storage
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Enabling Incremental Hybridisation™
Fossilfuel
Fossilfuel
Fossilfuel
Storage
SolarSolar
Solar
Time of day Time of day Time of day
Po
we
r
Po
we
r
Po
we
r
Low penetration High penetration Higher penetration+ storage
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New financing approaches
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Single point of accountability for power
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Typical project lifecycle
Engineering & Design
Geotech. 3 weeks
Electrical 1 week
Land area 1.2ha
Installation
Truck deliveries 7 B-triples
On-site installation
Up to 1 month
Peak workforce 12
Operation & maintenance
Operation SunSHIFT (remote)
Performance SunSHIFT guarantee
Maintenance IPP/SunSHIFT
Development
PPA contract term5-year, with early termination options
Capacity “Scalable”
Integration Site-specific
Lead-time:up to 4 months
Contract review(capacity, term)
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Fit-for-purpose Flexible PPA
Mine’s commercial driver SunSHIFT solar PV on a Flexible PPA
1. Low-cost, short-term PPA with options to extend or terminate
▪ Movable architecture allows for multiple short-term PPAs over the full 25-year asset life
▪ Utilisation of the full 25-year asset life enables low-cost PPAs
2. Low termination fees to maintain operational flexibility and reduce lease obligations
▪ Allows for early termination on mine closure subject to appropriate notice period and demobilisation payment
3. Scalable with the ability to take advantage of advances in technology over time
▪ Incremental hybridisation pathway provided and enabled by modular architecture
4. Minimal disruption to mine operations
▪ Low levels of on-site construction activity
5. Streamlined commercial integration
▪ Single point of accountability for power through close collaboration with IPPs
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SunSHIFT is a wholly-owned subsidiary of Laing O'Rourke Australia Pty Ltd.
SunSHIFT Pty LtdABN 31 611 313 752A Level 4, Innovation Place
100 Arthur StreetNorth SydneyNSW 2060
T +61 2 9903 0300 F +61 2 9903 0333 W sunshift.comE [email protected]
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