Navigating Emissions Reduction: Challenges and Opportunities in the Mining Industry
Key Ideas
- Mining companies target net-zero emissions by 2050, with interim goals to reduce scope 1 and 2 emissions by 30-50% by 2030.
- Renewable power on-site and power purchase agreements with utilities are key strategies for emissions reduction.
- Companies are considering a shift to battery-electric and hydrogen-powered machines for long-term sustainability benefits.
- Renewable diesel and biofuels are being explored as transition pathways to achieve emissions targets in the short term.
Mining companies are working towards achieving net-zero emissions by 2050, with interim goals set to reduce scope 1 and 2 emissions by 30-50% by 2030. Strategies to achieve these targets include transitioning to renewable power on-site and engaging in power purchase agreements with utilities or independent power producers. Companies like Harmony Gold are targeting a 63% emissions decline by 2036, with a focus on shifting from coal-fired grid power to renewables. On-site renewable power is seen as the most viable option for emissions reduction, while other decarbonisation options include battery/electric vehicles, hydrogen-powered vehicles, sustainable fuels, and renewable energy PPAs.
In terms of fleet emissions reduction, there has been a 14% decrease in emissions for 85 leading mining companies from 2018 to 2022, with further reductions projected for 2023. Companies are exploring the use of battery-electric and hydrogen-powered machines to progress towards net-zero emissions and realize benefits in productivity and cost-efficiency. However, the adoption of battery-electric machines is currently low, with expectations for a shift to occur primarily in the 2030s. Additionally, renewable diesel and biofuels are being considered as transition pathways to meet interim emissions targets.
Mobile diesel fuel contributes significantly to operational mine emissions, with up to 90% of scope 1 emissions for surface mines attributed to it. As companies substitute fossil fuel power with renewables, the proportion of emissions from mobile diesel is expected to increase. Miners like BHP and Rio Tinto are conducting trials with renewable fuels like blended HVO diesel and biofuels to support emissions reduction initiatives. These initiatives aim to not only reduce emissions but also enhance operational decarbonisation plans for a sustainable future.
Topics
Utilities
Renewable Energy
Decarbonisation
Mining Industry
Sustainable Fuels
Emissions Reduction
Battery Electric Vehicles
Scope 1 Emissions
Net-zero Strategies
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