Mining's mission to Net Zero
The Global Energy Transition
The mining industry is undergoing a meaningful energy transition – from traditionally relying on diesel for power generation to moving towards renewable and alternative fuel solutions.
Driven by the world’s leading mining companies committing to net-zero emissions by 2050, there has been significant investment in the electrification of equipment, process improvements, hybrid energy systems and on-site power generation across the sector.1
Investors, regulators, insurers, governments, and customers have also been major drivers of the transition, as there are increasing expectations about Environmental, Social, and Governance (ESG) criteria – the set of standards for a company’s operations that socially conscious investors use to screen potential investments. It is of no surprise therefore that “ESG” was listed in three of the top 10 issues miners were concerned about in Deloitte Insights’ Tracking the trends 2021 report for the mining sector. In its report2 , Deloitte states miners are revising their commitments to local communities, and to society at large, by enhancing their ESG performance. Getting serious about decarbonisation would turn corporate governance frameworks into a competitive advantage – initiatives that could drive value for their broader stakeholder groups as well. Most mining companies, the report cited, were also working to link their social investments to sustainable outcomes and playing an active role in the world’s transition to a clean energy future.
At Aggreko, we have witnessed these changes – particularly during the past few years – as greener technologies have gone from being boardroom discussions to being adopted at the coal face. Where traditionally the sector was reluctant to adopt new technologies, many mining companies are embracing the energy transformation. In fact, there are some that have become market drivers and are leading the change: they are approaching energy suppliers asking for big, bold, and creative ideas for power generation to combat climate change.
As power generation for mining has become more complex, we have tailored our solutions to simplify and de-risk these decisions for our customers. Using a combination of diesel, gas, solar, battery storage and wind, we’re able to assist miners to reduce carbon emissions while increasing overall energy efficiency. Our modular equipment – combined with our “build, own and operate” model – is allowing us to flex to suit the requirements of every mine through its entire lifecycle, or for part of it as and when needed.
- Austmine Smart Mining. “Industry Q&A: Powering the Mines of the Future”, October 2021. Accessed October 10, 2021. https://www.austmine.com.au/Web/News-Resources/Articles/2021/October/Industry-Q-A--Powering-the-Mines-of-the-Future-.aspx
- O’Brien, John; Stoch, Henry. Deloitte Insights (article). “Trend 3: ESG: Getting serious about decarbonization”, February 1, 2021. Accessed October 10, 2021. https://www2.deloitte.com/us/en/insights/industry/mining-and-metals/tracking-the-trends/2021/decarbonization-mining-and-climate-change.html