Adopting a flexible approach when implementing renewable energy solutions is key to helping miners achieve their ESG goals.
Decarbonisation has long been a crucial aspect of ESG (environmental, social and governance) standards across the globe.
This is especially true for Australian mining companies looking to reduce their emissions to 43 per cent below 2005 levels by 2030.
However, the sector will not be able to meet this goal, and the larger push to net-zero by 2050, without adopting strong ESG standards.
“There is increased demand for industry-leading ESG performance,” Aggreko head of ESG, APAC (Asia-Pacific) Matt Hunter told Australian Mining.
“The key stakeholders of mining organisations are driving improved ESG performance, whether it be via investors, shareholders, government bodies or internal commitments.”
While decarbonisation is a priority for several mining companies, there are some factors posing difficulties, including the cost of investing in low-carbon energy sources and associated infrastructure, ongoing regulatory changes and varying societal attitudes.
That being said, the benefits far outweigh the challenges.
“There are growing benefits to decarbonisation either through ‘green finance’ or minimising the impacts of Australian legislative requirements such as the Safeguard Mechanism,” Hunter said.
“The Safeguard Mechanism covers facilities that emit more than 100,000 tonnes (t) of carbon dioxide equivalent (CO2-eq) per financial year and aims to ‘predictably and gradually over time’ reduce baseline emissions to contribute to Australia’s 2030 and 2050 emission reduction targets.
“This will be achieved either through the implementation of technology to reduce pollution or through the purchase of carbon credits.
“While many technologies such as hydrogen- and battery-powered haul trucks still require further development, renewable energy and hybrid power solutions offer a proven and cost-effective solution to assist organisations in meeting decarbonisation targets.”
Renewables refer to energy sources that aren’t depleted when used, like wind and solar, while hybrid technology refers to one renewable energy system being integrated with another.
Benefits of hybrid power outside of emissions reduction include being able to scale the solution to meet different energy demands, being cheaper to run compared to standalone gas or diesel systems, and providing uninterrupted power during outages.
“Most mining companies are looking for solutions that will help achieve their ESG objectives and reduce operational costs,” Hunter said. “The benefit of hybrid energy solutions is that they can achieve both.
“As a result, the majority of new mines are looking to implement hybrid energy solutions as they provide the lowest cost of energy.”
Aggreko, a leading independent power producer in Australia, has over 60 years’ experience in providing a wide range of innovative and flexible modular energy solutions.
The company’s energy solutions include hybrid power stations, solar farms and battery energy storage systems (BESS).
“Aggreko develops tailored solutions to provide better and cleaner energy solutions for our customers,” Hunter said. “It’s not so much about turning away from traditional power generation but adopting renewable solutions as a cheaper and cleaner alternative.
“While operating on 100 per cent renewable energy is ideal, it’s not always a feasible solution. We work with our customers to develop solutions that maximise emission reductions while being cost effective and meeting site requirements such as environmental or space constraints.
“For locations that want to completely avoid fossil fuels, Aggreko can supply renewable diesel as a lower emission, fossil fuel-free alternative.”
Aggreko utilises a flexible and modular approach when implementing its renewable energy solutions.
“We are able to pair our modular and rapidly deployable traditional power generation and BESS units with renewable energy solutions, including solar and wind,” Hunter said.
“Our engineering team works closely with our clients to develop a customised solution that will maximise emission reductions and minimise costs.
“In most cases, hybrid renewable power stations provide significant cost savings over the life of the project by comparison.”
Aggreko has an expansive global track record, successfully implementing renewable energy solutions at mine sites owned by Rio Tinto, Gold Fields and Northern Star Resources.
At Rio Tinto’s Gove bauxite operation in the Northern Territory, Aggreko is building two 5.25-megawatt (MW) solar farms which, when complete, will have a combined capacity of 10.5MW.
The solar farms will be built on Rio Tinto’s leases on Gumatj and Rirratjingu Country, as per an agreement signed by Rirratjiu, Gumatj and Galpu Traditional Owners, the Northern Land Council and Rio Tinto in May 2011.
Aggreko will construct, own and operate the solar farms for Rio Tinto for up to 10 years. Construction of the farms commenced in July 2024 and completion is scheduled for 2025.
Once operational, the solar farms are expected to reduce the Gove region’s annual diesel consumption by about 20 per cent, or 4.5 million litres per year, as well as lower annual carbon emissions by over 12,000t.
Aggreko will also build, own and operate a 12.4MW solar farm and 8.8MW/2.1MWh BESS under a long-term power purchase agreement for Rio Tinto’s Amrun bauxite project in Weipa, Queensland.
The project, which was awarded to Aggreko in December 2023, will supplement power currently supplied by diesel generators and will help reduce Scope 2 emissions at Weipa by up to 10 per cent.
Once operational, the solar farm and BESS are expected to reduce Amrun’s diesel electricity consumption by 37 per cent or approximately 5.5 million litres of diesel fuel per year. This will reduce annual CO2 emissions by approximately 14,000t.
“Aggreko recognises it has an important role to play in the energy transition,” Hunter said.
“We’re continually investing in more sustainable products, fuels and services to make greener solutions accessible to customers, helping them wherever they are on their energy transition journey.
“Our sustainability framework, Energising Change, supports our vision of a low-carbon world in which businesses can grow and communities can thrive, both through the benefits of our energy solutions and our commitment to developing skills.
“Energising Change translates this opportunity into clear actions in the areas where we believe we can make the biggest difference: accelerating transition, promoting development and taking responsibility.”
Aggreko is also on its own decarbonisation journey, targeting net-zero emissions for its facilities and operations by 2035.
“As part of our commitment to accelerating transition, Aggreko has set an ambitious target to reduce the emissions intensity of our energy solutions by 30 per cent by 2030,” Hunter said. Through the increased uptake of renewable hybrid energy solutions, combined with growing availability of alternative fuels such as renewable diesel, we feel that this is a challenging but achievable goal.”
As the demand for electrification and decarbonisation increases around the world, Aggreko expects the demand for renewable energy and hybrid solutions to grow along with it.
“The mining industry is increasingly electrifying its operations to reduce emissions, improve safety and lower costs,” Hunter said.
“As the demand for electrification grows, we expect to see a significant uptake in renewable energy adoption as a cost-effective solution.
“Locations that currently rely on grid connectivity may transition to microgrid solutions due to challenges associated with grid capacity and the need for a reliable energy supply.”
Able to leverage its global expertise, Aggreko is bringing energy solutions tailored to the unique needs of the mining industry, supporting the sector’s overarching decarbonisation goals.
This feature appeared in the June 2025 issue of Australian Mining.