REALIZING UP TO 80% DIESEL SAVINGS WITH MINING MICROGRIDSQ&A Interview with Daniel Jäger, Manager Business Development CrossPower, PFISTERER

As Head of Business Development Cross-Power, PFISTERER, Daniel Jäger is an expert in the latest developments in renewables microgrid solutions for large industrial us-ers. Energy storage is the most relevant in-novation for mining users, he observes, as it significantly increases the potential for fur-ther cost and diesel savings. Shorter pay-back periods and flexible solutions are other benefits that directly address the business needs and priorities of the resource sector.

In this Q&A interview, Jäger offers his in-formed perspective on the latest develop-ments in microgrids for mines. He will also be presenting at the upcoming Energy and Mines World Congress taking place Novem-ber 27-28 at the Hilton Toronto. Visit: www.worldcongress.energyandmines.com

Energy and Mines: How is the microgrid business evolving to meet the specific needs of industrial clients?

Daniel Jäger: PFISTERER offers a tai-lor-made, customized solution with its CrossPower system. Each CrossPower system is designed according to the cus-

tomer’s individual requirements, needs and locations. Compiling individual components without being tied to a single manufacturer offers benefits when it comes to costs and makes sure that the best and most suitable technology is used.

The concept of CrossPower includes differ-ent manufacturers for the individual parts of the system, which are combined to offer a well-functioning hybrid system.This phi-losophy assures that, at the time of project implementation, the best available solution is realized.

E&M: What type of fuel and carbon savings can remote microgrids offer mines?

DJ: Renewable energy production using sources such as wind power, photovoltaics, and hydropower in combination with die-sel and powerful battery storage systems guarantees a reliable and stable supply of energy 24-hours a day, seven days a week.

In terms of energy production, our intelli-gent management system makes sure that preference is given to renewable energy

and battery storage. Fossil fuels are only used when really necessary.

Our goal is to generate at least 50% of elec-tricity from renewable sources at all times, no matter where the system is located. CrossPower significantly decreases con-sumption of fossil fuel energy sources up to 80% or more. This helps protect the envi-ronment and reduces operating costs con-siderably.

E&M: What are the main benefits of microgrid systems for mines?

DJ: The mining sector is always under pres-sure regarding its environmental impact

REALIZING UP TO 80% DIESEL SAVINGS WITH MINING MICROGRIDSQ&A Interview with Daniel Jäger, Manager Business Development CrossPower, PFISTERER

Daniel Jäger Manager Business

Development CrossPower PFISTERER

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REALIZING UP TO 80% DIESEL SAVINGS WITH MINING MICROGRIDS

“BY SAVING UP TO 80% ON FOSSIL FUELS, MINING’S CARBON FOOTPRINT IS REDUCED DRAMATICALLY AND ENERGY COSTS CAN ALSO BE SIGNIFICANTLY LOWERED.”

and is known as a “dirty business”. Micro-grids can help reduce mining’s the environ-mental footprint and increase the resource sector’s sustainability. By saving up to 80% on fossil fuels, mining’s carbon footprint is reduced dramatically and energy costs can also be significantly lowered.

E&M: How does the cost of maintaining diesel power compare to the capital costs of installing and operating a renewables hybrid?

DJ: By saving 80% or more in diesel use, the normal return on investment period is approximately 3 years. On a 150 kW sys-tem our daily savings can be up to 600 USD, which means annual savings of up to 200,000 USD. Therefore, an enormous amount of diesel is substituted.

When you estimate 80% diesel savings an-nually, that’s roughly a savings of 200,000 USD a year which allows for an approxi-mate 3-year return on investment. In this case, the diesel generator runs just for a few hours a day and is just used for back-up. There is close to no operating and other maintenance costs which leads to a faster return on investment.

E&M: What recent technological innovations are most relevant for the mining sector?

DJ: In the field of microgrids, fast developing battery technology is the most important innovation for the mining sector. Storing

energy when it is not needed and using it when needed adds additional cost savings. Additionally, our intelligent management system is very important for the mining business because it makes sure that pref-erence is given to renewable energy and battery storage. Fossil fuels are only used when really necessary.

E&M: How are the finance options evolving for mining microgrids?

DJ: We offer three different options to fi-nance a mirogrid system. The first one is the normal purchasing option, where the customer buys the system completely. PFISTERER is responsible for planning, engineering and commissioning as an EPC contractor. After commissioning, the sys-tem is handed over to the customer. The customer then is responsible for operation and maintenance.

The second option is financing (leasing), whereas PFISTERER is responsible for planning, engineering, commissioning and financing. The customer pays an agreed leasing rate for an agreed time frame.

And the third option is a PPA (Power Pur-chase Agreement) whereby PFISTERER has a BOO (Build Own Operate) model and is re-sponsible also for operating. The customer then pays an agreed price per kWh. All these financing models need to be discussed on a case-by-case basis with customers.

E&M: Beyond remote applications, how

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REALIZING UP TO 80% DIESEL SAVINGS WITH MINING MICROGRIDS

“OUR GOAL IS TO GENERATE AT LEAST 50% OF ELECTRICITY FROM RENEWABLE SOURCES AT ALL TIMES, NO MATTER WHERE THE SYSTEM IS LOCATED.”

“INCREASED PRESSURE TO REDUCE ENVIRONMENTAL IMPACTS COMBINED WITH RISING DIESEL FUEL AND TRANSPORTATION COSTS, WILL CONTINUE TO DRIVE THE USE OF RENEWABLE ENERGY IN REMOTE MICROGRID SYSTEMS.”

are microgrids being deployed to improve grid stability and load smoothing for industrial users?

DJ: The main component for the improve-ment of grid stability and peak shaving is the battery. The storage acts like a buff-ering system, supplying peaks and fluc-tuations of the load, without transferring them to the grid. So the grid is reinforced and the customer’s electricity bill goes down because they aren’t paying for the peaks.

E&M: How do you see the energy mix of remote mines evolving in the near-future?

DJ: The world of power supply is going through a process of fundamental change. Critical issues do not just concern how and where we are going to produce electricity but also where and how we will use it.

Increased pressure to reduce environmen-tal impacts combined with rising diesel fuel and transportation costs, will continue to drive the use of renewable energy in re-mote microgrid systems.

Most of remote mines have good locations in terms of renewables resources and, com-bined with a powerful battery storage, they can benefit greatly from microgrid systems. Microgrids in remote mining areas will in-crease over the next few years leading to diesel and cost savings and increasing the sustainability and climate response of the mining sector.

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