ARENA commits to solar-powered mine site

The Weipa Solar Photovoltaic (PV) Project, based in far-north Queensland, has received a commitment of $3.5 million from the Australian Renewable Energy Agency (ARENA). The collaborative project will supply renewable energy to Rio Tinto Alcan’s (RTA) Weipa bauxite mine, processing facilities and township on the Western Cape York Peninsula.

ARENA CEO Ivor Frischknecht noted that off-grid communities and businesses have had little choice but to rely on diesel generators that are expensive to run and subject to volatile fuel prices.

“Transporting fuel long distances for generators is dangerous and subject to variable weather conditions - it is a costly, unpredictable arrangement that doesn’t make good economic sense,” he said.

The Weipa project is “the first time a mining company has adopted renewable energy for its Australian operations”, said Frischknecht, and will “provide 1.7 MW off-grid power to the mine, town and port facilities under a 15-year power purchase agreement with Rio Tinto Alcan”.

PV solar system provider First Solar will leverage its expertise in utility-scale grid integration and plant control systems to offer a FuelSmart solution for the project that provides maximum fuel savings while maintaining system reliability, in addition to providing operation and maintenance services. Solar energy company Ingenero will meanwhile contribute its design, development and integration experience.

“First Solar and Ingenero will deliver ground-mounted thin-film PV to the site; a total of 18,000 solar PV panels will be installed during this first phase, contributing up to 20% of daytime demand and offsetting the mining operation’s reliance on diesel fuels,” said Frischknecht.

RTA General Manager Weipa Operations Gareth Manderson added, “We expect the use of solar power will reduce Weipa’s annual diesel consumption and its carbon dioxide emissions by around 1600 tonnes,” with the solution introducing a reliable source of electricity with low maintenance requirements.

Frischknecht said ARENA has committed up to $7.8 million for a second phase of the Weipa project, contingent on the success of the initial phase in late 2014.

“Due for completion in 2017, the second phase is intended to deliver an additional 5 MW PV system; it will include a significant storage component and be capable of meeting up to 100% of daytime power demand at Weipa at certain times,” he said.

“The information and data generated by this project will be captured and transferred through a knowledge sharing plan negotiated with ARENA and will ensure the sector is in a good position to advance commercially viable, off-grid renewable energy solutions.”