Aggreko to make big investments to back miners’ clean energy transition
Aggreko (LSE: AGK), a supplier of mobile, modular power generation equipment, announced that it is partnering with some big names in the mining industry to reach net-zero emissions by 2050.
In a press release, the Scottish company said it has vowed to invest between $342 million and $470 million per year to support its energy transition, including big spends in bringing solar, wind, and natural gas to mine sites.
“Power generation for our customers has become more complex, and Aggreko has a responsibility to create power that is healthier for the world’s wellbeing,” the firm’s Australia Pacific managing director, George Whyte, said in the brief. “Miners – and increasingly those with unreliable or no access to grid power – are partnering with Aggreko to provide hybrid power solutions on-site, which might include an energy mix of diesel, gas, solar, wind and battery storage.”
According to the executive, the company is already delivering hybrid power solutions to mining sites across Australia, Africa, North and Latin America, Africa, and Southeast Asia.
One of such clients is Gold Fields, whose Granny Smith gold mine in Australia hosts a 20,000-panel, 7.7 MWp solar power and battery facility.
In Whyte’s view, even though miners are looking for economic, reliable, and available alternatives to fossil diesel, they want a phased approach.
“It is a de-risking strategy for miners, helping them to reduce their capital costs while lowering their emissions. Instead of miners having to specialise in power solutions, Aggreko invests in the capital, remotely monitors it, and provides the maintenance and all of the technological upgrades along the way,” Whyte said. “They don’t then have the fear that the power capital they invest in will be obsolete in five years’ time.”
Aggreko’s Australia Pacific managing director also said that the company is putting a special focus on hydrogen as a fuel source, particularly green hydrogen, where electrolysis is powered by renewable energy.