Operations management consultancy dss+ has released a global report analysing the risks and rewards of successfully shifting to a renewable energy system that includes green hydrogen in mining companies.
The prospective rewards are great – in mining operations, the adoption of green hydrogen can reduce GHG emissions by replacing diesel fuel in hauling vehicles, which can contribute 30% to 80% of a mine’s emissions footprint.
Hydrogen is estimated to account for 12-20% of energy demand by 2050, presenting additional business opportunities for mining companies willing to engage.
Based on direct experience working with tier one and two mining companies, as well as navigating successful transitions to hydrogen in other industries – including the petrochemical industry – the report is authored by a team of dss+’s global experts, including Director for Australia and New Zealand, Andrew Wilson, and ANZ Head of Mining and Metals, Wes Austerberry.
The report identifies ways green hydrogen is being adopted as a new source of business, including production of green hydrogen and use as fuel substitution in a range of heavy mining vehicles and equipment; reduction of carbon footprint of produced minerals and metals to meet low carbon requirements in downstream processing operations; evolution and expansion of the business model beyond minerals and metals production into green energy generation; and strategic partnerships and alliances aiming to influence, support and fuel investments and technology advancements.
dss+ Director for Australia and New Zealand Andrew Wilson said: “Green hydrogen certainly shows great promise in helping to deliver an environmentally and economically sustainable future for mining companies.
“Its use cases extend far beyond simply fuelling heavy trucks, however, with great reward comes great risk.
“There are a number of examples from adjacent industries, including the chemical industry, that highlight the significant and often unforeseen challenges of an aggressive scale-up where new and exciting technologies are present.
“The projected scale of hydrogen adoption is, as yet, unprecedented.
“This requires a holistic appreciation of risk factors, which not only include the technicality of designing, building and commissioning hydrogen production facilities and converting an entire truck fleet.
“Companies must also consider the maturity of players and its supply chain entering the hydrogen economy as some may lack necessary experience and qualifications.
“A holistic organisational approach is fundamental to save lives and the bottom line.”
In addition to necessary changes in the regulatory environment, policies, external energy infrastructure, dss+ identify five key operational aspects that underpin the successful deployment of green hydrogen at scale in mining operations:
- Change in Risk Profile
- Technology Readiness and Innovation Portfolio Management
- Capital Projects
- Asset Integrity and Reliability
- Partners and Suppliers
The full report can be downloaded here.
