Mining energy solutions: How renewables are transforming the mining industry

As Australia’s mining industry seeks ways to align with the Climate Change Act and the ambitious goals it sets forth, renewable energy is becoming a critical piece of the puzzle. Mining energy solutions that incorporate renewable energy sources, battery energy storage systems (BESS), and biofuel generation are leading the way in reducing emissions while ensuring energy security and resilience. Companies like Acacia Energy are at the forefront, providing comprehensive solutions that enable mining operations to meet emission reduction targets, maintain energy reliability, and generate cost savings through innovative energy practices.

Meeting regulatory demands with mining energy solutions

Australia’s Climate Change Act 2022 (passed in September 2022) has set legally binding targets for a 43% reduction in greenhouse gas emissions by 2030 (from 2005 levels) and net-zero emissions by 2050. These targets place particular emphasis on high-emission industries like mining, where Scope 1 emissions—the emissions directly associated with mining operations—are substantial. Acacia Energy’s expertise in mining operations and energy requirements allows it to provide mining energy solutions that align with these reduction goals.

Integrated systems of renewable energy, solar, BESS and biofuel/HVO gensets not only help mining companies meet regulated baselines but also support long-term sustainability objectives. These solutions are essential for regulatory compliance under the Safeguard Mechanism—a policy aimed at reducing emissions in high-emission sectors—and contribute to the overall reduction in fossil fuel dependency, paving the way for a cleaner mining industry.

Businesses who are impacted by the legislation will have to:

1. Report opportunities to reduce their carbon emissions.
2. Move towards operating the business in a low-carbon world.

In carbon reporting, Scope 1, 2, and 3 emissions refer to different categories of greenhouse gas emissions an organisation must account for:

• Scope 1 emissions: Direct emissions from sources owned or controlled by the organisation, such as fuel combustion from company vehicles or on-site manufacturing.
• Scope 2 emissions: Indirect emissions from the generation of purchased energy (like electricity, heating, or cooling) consumed by the organisation.
• Scope 3 emissions: All other indirect emissions that occur throughout the organisation’s value chain, including emissions from suppliers, product use, waste disposal, and employee travel.

Importantly, this is not just about big business; what’s not stated is that businesses operating within supply chains must also report. For example, if you’re a dairy processing factory, the climate risk of the company supply chain must be considered. The business owner will need to report the carbon emissions of their suppliers in their Scope 3 emissions.

As companies explore renewable pathways, projects like Acacia Energy’s Groote Eylandt initiative exemplify how renewable energy integration is reshaping mining communities and setting a precedent for sustainable operations.

Solar + BESS microgrid minesite integration for Traditional Owners on Groote Eylandt

Acacia Energy’s engagement by Groote Holdings Aboriginal Corporation (GHAC) in the Northern Territory, highlights the potential of renewables in transforming mining communities to help them meet reduction targets. In partnership with the First Nations people, Acacia worked with the mine operator GEMCO to begin transitioning Groote Eylandt’s local communities to renewable energy. This project focuses on reducing dependence on non-renewable energy sources and lays the groundwork for full-scale decarbonisation, especially as the mine nears its projected closure in the next decade.

By planning for a sustainable energy future, this project represents a model for aligning mining operations with community values and environmental goals. It not only helps ensure a cleaner energy transition but also respects the Indigenous values of stewardship for the land. The Groote Eylandt project underscores the importance of community-led and culturally sensitive approaches to sustainable development, a practice Acacia is deeply committed to.

Energy security and reliability through microgrid applications

For remote and isolated mining sites, energy security is a key concern. With limited access to the central grid, microgrids powered by renewable energy and supported by battery storage and biofuel gensets offer reliable, continuous power. This is crucial for mining operations in regions like Groote Eylandt, where access to traditional power sources is challenging.

Microgrid systems offer resilience, ensuring uninterrupted power for critical loads even during grid disruptions. The flexibility to customise configurations according to specific site demands enables efficient and secure energy provision, supporting both mining operations and local communities in these remote areas.

Price arbitrage opportunities for cost-effective mining energy solutions

For those mining operations connect to the grid, the integration of renewable energy sources into mining operations opens up opportunities for price arbitrage, providing significant cost savings. By storing cheap, renewable energy in battery storage systems and dispatching it during peak pricing periods, mining companies can optimise energy costs and generate revenue. Revenue sources are not limited to price arbitrage; they include frequency control ancillary services, peak demand shaving, and enable pool price pass-through wholesale market opportunities. The latter is all about reducing the cost of energy.

Acacia Energy’s mining energy solutions enable clients to participate in wholesale energy markets, capitalising on price arbitrage to improve the return on investment for renewable energy projects. This approach not only supports project economics but also fosters local economic benefits by potentially lowering overall energy costs for communities around mining sites.

Stability and control against energy price volatility

Energy price volatility presents a challenge for mining operations, as traditional fuel prices can fluctuate unpredictably. Renewable energy sources, combined with BESS and biofuel gensets, can provide a physical hedge against such price variations. This stabilised energy cost base is beneficial not only for operational planning but also for risk management, as it reduces exposure to market-driven fuel costs.

For remote communities reliant on mining, this stability contributes to energy resilience, providing them with reliable and more affordable power options while decreasing dependency on external fuel sources. Acacia’s mining energy solutions enable long-term cost control, making energy expenses more predictable and manageable for the mining sector.

Supporting the grid with frequency control ancillary services (FCAS)

Mining energy solutions that incorporate BESS and biofuel gensets are well-equipped to support the grid with frequency control ancillary services (FCAS). By quickly responding to fluctuations in grid frequency, these systems enhance grid stability and reliability. This capability is especially valuable during peak load periods, where renewable energy can help balance demand and supply, reducing reliance on fossil-fuel-based power generation.

FCAS participation also offers a revenue stream for mining operators, allowing them to further offset energy costs. Acacia’s solutions help mining companies meet grid demands and support Australia’s move towards a lower-carbon grid.

Advancing sustainability and environmental goals

Incorporating renewable energy into mining is a significant step toward achieving sustainability and minimising environmental impact. Acacia Energy’s approach, which includes HVO biofuel and renewable energy sources, is aligned with Australia’s sustainability objectives and the mining industry’s ESG goals. Reducing reliance on traditional fossil fuels, these solutions contribute to a cleaner mining process that appeals to investors and stakeholders prioritising environmental responsibility.

High renewable penetration and effective integration with biofuel and battery storage allow mining operations to significantly lower carbon emissions. This not only meets regulatory compliance but also demonstrates a commitment to sustainable development within Australia’s mining sector.

Building community partnerships and fostering local economic growth

Mining energy solutions that prioritise renewables not only benefit the mining industry but also align with the goals of Indigenous and local communities. Acacia Energy’s projects emphasise collaboration with local communities, offering employment and training opportunities that develop skills in renewable energy and technology.

The feasibility study on Groote Eylandt is one example of this. By planning a transition to renewable energy, Acacia is working with local Indigenous groups to foster sustainable economic growth and enhance energy independence. Lowering energy costs and promoting self-reliance contribute to the financial resilience of remote communities, ensuring lasting benefits even after mining operations conclude.

Paving the way for a sustainable future in mining

The adoption of renewable-focused mining energy solutions is essential for the Australian mining industry to meet the stringent targets set by the Climate Change Act and the Safeguard Mechanism. Acacia Energy’s comprehensive solutions support emissions reduction, energy security, and cost-effectiveness, ensuring that mining operations can continue sustainably in a changing regulatory landscape. By leveraging renewables, battery storage, and biofuel, the mining industry can reduce its environmental footprint, enhance energy resilience, and contribute to Australia’s long-term sustainability goals. Projects like the Groote Eylandt feasibility study exemplify how a renewable transition can respect community values, drive economic development, and prepare mining sites for a cleaner future.