09/03/2022

Australia: marching towards a lower carbon future

       With sustainability now viewed as an ethical norm and an important part of business’s social licence to operate, the challenge for the mining industry to move to greener future is an opportunity to reset the industry’s reputation the broader public. Like its global peers, Australia’s mining industry is welcoming this challenge, with many companies making a firm commitment to reduce carbon emissions as part of the 2015 Paris Agreement, which came into place in 2020. 

          Australia, which is home to four of the world’s biggest coal mines and is the biggest coal exporter in the world, certainly has a lot of work to do to push into clean energy and emission abatement. But, with the abundant economic opportunities of decarbonisation, Australia, and its world-class resources sector, has strong imperative to emerge as a zero-carbon energy powerhouse. In addition, underground coal mines are proving to be the most electrified mines today. The Australian mining sector is already developing advanced technologies that will help cut emissions. Technological improvements such as increasing automation and electrification of mining equipment creates opportunities for the mining sector to turn the goal of net zero emissions by 2050 into reality, while simultaneously creating a range of productivity and efficiency benefits, including fuel consumption savings.

 

According to a recent study by investor coalition, The Climate Action 100 initiative, Australian companies are second only to Europe with regards to setting net-zero targets. Furthermore, the Australian government’ new Energy Technology Roadmap offers a feasible way forward for activating an array of technologies that can sustainably support a net-zero emissions future. 

        Australia’s mining sector is itself taking the right steps to not only innovate so that it can produce metals in an energy efficient and socially responsible way, but is doing so to support the rest of the world’s goal of a greener future through supplying the key metals necessary to do this. `analysis by consultancy firm, Wood Mackenzie, states mining companies will need to invest US$1.7 trillion in the next 15years to help supply enough copper, cobalt, nickel, and other metals needed for the shift to a low carbon world. Whichever metric one looks at it, this will require a significant uplift in activity and investment across the entire mining value chain. The following are the key trends taking place in the Australian mining industry, all of which aim to lay the groundwork for a lower carbon future and the transition to greener energy. 

Sourcing clean energy

     With climate change concerns accelerating the mining industry’s shift away from fossil fuels, there is likely to be a significant uplift in demand for green power. In an effort to reduce the use of diesel generators and minimise Scope 2 carbon footprints, mining companies are increasingly looking for off-grid power solutions. According to the Australian Renewable Energy Agency (ARENA), the Australian mining sector consumes roughly 500PJ/y, equating to 10% of Australia’s total energy use. The mining sector derives most of its energy from diesel (41%), followed by natural gas (33%), and grid electricity (22%). 

     With Australian’s industry broadly welcoming a decarbonisation agenda, reflected in the strong commitments, to transition to alternative means of energy for transportation, there is likely to be a significant uplift in demand for electricity at mine sites. As part of the collective push under the reduction of Scope 2 greenhouse gas (GSG) emissions (indirect emissions) to source electricity through renewable sources or more carbon efficient means, the mining sector’s investment in alternative power options will continue to grow. Solar power, particularly in remote locations, is proving to be an attractive energy alternative for Australian mines, albeit with some challenges around land use in heritage sensitive areas. 

Author

2 Comments

  • 10/08/2021

    Toby Young

    The plan contained no new policies. The word plan doesn’t constitute a plan, no matter how often it is said.

  • 17/06/2023

    https://israelnightclub.com/

    May I simply say what a comfort to discover somebody who genuinely knows what they are talking about over the internet. You actually understand how to bring a problem to light and make it important. More people ought to check this out and understand this side of the story. I cant believe you arent more popular because you surely possess the gift.

Comments are closed.