Hauling” ourselves into the future · IN-PIT CRUSHING & CONVEYING +Continuous operation +Low...

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“Hauling” ourselves into the future

Thomas Kirk, Senior Associate, Rocky Mountain Institute

Transforming global energy use to create a clean, prosperous, and secure low-carbon future.

HAULING OURSELVES INTO THE FUTURE

TJ Kirk | 10.22.19 | Denver, CO

IMPROVING THE SUSTAINABILITY OF HAULING OPERATIONS

TABLE OF CONTENTS

• Introduction

• Sizing the Challenge

• Decarbonization Options

• Strategies for Meeting Emissions Targets

• Carbon Accounting for the Future

INTRODUCTION

We Transform Global Energy Use to Create a Clean, Prosperous, and Secure Low-Carbon Future

Our Mission:

6

RMI OVERVIEW

7

DECARBONIZATION IN MINING: ENERGY-CENTRIC INNOVATION

WE WANT TO DEVELOP STRATEGIES AND PATHWAYS TO TURN LOW-CARBON ENERGY

TECHNOLOGIES AND BUSINESS MODELS INTO A COMPETITIVE ADVANTAGE FOR THE MINING INDUSTRY.

Legacy Sites

Operating Mines

Customers and Community

New Mine

Design

• Establishes a vision for the future of the mining industry, shaped by current trends and technologies

• Uses systems thinking to identify pathways to achieve production, safety, financial, and sustainability goals

• Tailors solutions to address the unique needs and challenges of mining firms

Renewables redevelopment

PPAs / VPPAs

Automation

Fuel switching

Demand-side management

Energy efficiency

Rural electrification

Economic development

Fully autonomous mining

100% mine electrification

Renewable microgrids

Mines as a grid asset

Digital transformation

Mobility transformation

De-commoditization

Zero carbon mining

SIZING THE CHALLENGE

9

HAULING ACCOUNTS FOR UP TO 50% OF MINE ENERGY

28,000 large mine hauling trucks

x

900,000 liters of diesel per truck

per year

= 68 million tons of CO2e per

year

By Dan Fleet 00:22, 9 February 2007 (UTC) / - Self-produced digital photograph / Transferred from en.wikipedia to Commons by harfang., Public Domain,

https://commons.wikimedia.org/w/index.php?curid=12809980

10

TRUCKING DEMAND ON TRACK TO INCREASE 125% BY 2050

• Commodity Demand + 50-100%

• Ore Quality - 50-100%

• Trucking Need +25%

11

TRUCKING NEEDS TO BE 108% MORE EFFICIENT BY 2050

DECARBONIZATION OPTIONS

13

THREE GENERAL SOLUTION SETS

14

BIO-DIESEL

+Considered Carbon-Neutral

+B20 can run in diesel engines without

modification

+Reduces CO, SOx and Particulates

- Higher concentration blends may

damage engines

- Supply Chain Concerns in consistency

and environmental impact

SUPPLY UNCERTAIN BUT FUEL IS FUNGIBLE WITH DIESEL AT LOW % BLENDS

15

NATURAL GAS

+Demonstrated applications in medium &

heavy duty trucks

+Reduces CO2 emissions by 20-25%*

+Dual-Fuel blending has been proven to

work

- Emissions reduction potential depends

on upstream supply chain

- Retrofitting required to run trucks

entirely off LNG

- On-site cryogenic storage tanks

required

READILY AVAILABLE AND PROVEN FOR TRUCKS BUT NOT HAULERS

16

TROLLEY-ASSIST

+With grid power, can reduce CO2 emissions by up to

30% from reduced diesel

+Trucks move faster up-hill

+System becomes cleaner as power supply becomes

cleaner

- High capital cost

- Fixed asset*

- System downtime will impact mine operations

VALIDATED RETROFIT TECHNOLOGY FOR SPECIFIC APPLICATIONS

17

IN-PIT CRUSHING & CONVEYING

+Continuous operation

+Low OPEX

+Fully electric allows operations to become

cleaner with supply

+Multiple designs available

- High capital cost

- Fixed asset*

- System downtime will impact mine

operations

- Best for new mine design, not retrofit

- Ramp slope less than 10 degree

WELL-ESTABLISHED METHOD FOR BULK MATERIAL TRANSPORT AT LOW COST

18

ELECTRIC TRUCKS

+No on-site emissions

+Supply of energy storage can enable more

renewables & load-shifting

+Potentially much lower OPEX

+Integration with Trolley-Assist

- Requires more down-time for charging

- Not commercially available at scale

- Higher CAPEX than diesel haulers

EXCITING BUT NOT AVAILABLE AT SCALE

19

HYDROGEN FUEL

+No on-site emissions

+Supply of energy storage can enable more

renewables & load-shifting

+Higher energy density than batteries

+Provides all the flexibility that traditional fuels provide

- Not commercially available

- Higher CAPEX than diesel haulers

ALSO EXCITING BUT NOT AVAILABLE YET

STRATEGIES FOR MEETING EMISSIONS TARGET

21

IMMEDIATE SHALLOW CUTS ONLY BUY A FEW YEARS

DEEP CUT NEEDS TO HAPPEN BY 2028 - 2033

22

THREE BROAD STRATEGIES

1.Expand the Problem

2.Over-Deliver on Select

Assets

3.Accelerate Technology

Readiness

CARBON ACCOUNTING

24

Minerals industries pressured from multiple directions

Industry-led certification

Disclosure Programs

Sustainability Regulations Products & Procurement

25

Dynamic that drives change throughout a mineral value chain

A. Technology and Process Design• Break-through• Adoption

B. Energy / CO2 Footprint• Energy Efficiency• Energy Supply

C. Value Chain of The Future• Supply / Demand balance• Product differentiation

D. Demand and Requirements• Commercial Market Drivers• Investors / Community / Policy

…enables

changes to…

…to improve

competitive

position in…

…to capture

opportunities

of a market

tracking to 1.5C

…driving

innovation in…

…requiring

drastic

changes to…

...change the

fundamental

dynamics of…

PU

LL

PULL

PU

SH

PUSH

THANK YOU

TJ Kirk

tkirk@rmi.org

Manager, Mining Initiative, RMI