Green Producers: Energy

This article is the fifth of a five-part series on green producers, and why we should celebrate those who have been doing it well and will continue to do so.

photo of green dredge mine with wind turbines

When most people think of green, they think of energy and renewable resources replacing fossil fuels. And when mining operators think about how to become more efficient, energy consumption is always top of mind. It makes sense then that the final topic in this series comparing green producers and great producers involves energy.

The common points of the green energy discussion include renewable energy like wind, water, solar, and (gasp) even nuclear. However, these alternatives aren’t always available, and many mines are forced to rely on good old-fashioned diesel fuel. So how can a producer be green while burning diesel?

The simple answer is efficiency. While green producers may focus on things like total fuel consumption, fuel burn, and the performance of their equipment, a great producer’s constant focus on efficiency and cost reduction very quickly aligns the green producer and the great producer. And in the case of fuel consumption, that alignment is total…the less fuel it burns, the more efficient and environmentally friendly an operation is. And seemingly inconsequential management decisions can have a significant impact on fuel consumption. Making sure that equipment doesn’t sit idle while running is one example. If a machine is on, it must be performing work, thus eliminating non-productive burn of fuel. Great producers replicate this process for every piece of diesel equipment on site, be they generators, loaders, dump trucks, even pickup trucks. By improving the efficiency of every gallon of fuel burned, great producers become green producers.

Aside from diesel, consider fuel alternatives. Mining operations often sit on very large parcels, ideal for solar cells and windmills. Indeed, many aggregates and cement locations have already embraced these alternatives. In the image above, the ever-present windmills tower over the ROHR-IDRECO floating dredge, generating enough power to offset a significant percentage of the site’s energy consumption. This same premise could apply to solar (as pictured below), when placed in areas outside of the medium-term mining footprint, thus enabling a productive and green use for otherwise idle areas of the site.

Solar array at mine site

Governments often provide incentives for exactly this type of investment, offering grants, rebates, and subsidized loans to offset the initial capital requirements. Once again, we see that the great producer, aiming to reduce costs and extract value from every acre of the site, becomes a green producer by moving to renewable energy.

Even without the use of onsite renewables, electric power from the grid can have benefits for both the great and green producer. Moving away from diesel and leaning into electric supply reduces carbon footprint and typically reduces operating costs as well. Converting an operation from dry mining with mobile equipment to wet mining with electric dredges can dramatically reduce operating costs, fossil fuel consumption, and overall emissions. And again, many states even offer incentives to offset the capital required to make this change. As an example, consider the Texas Emissions Reduction Program (“TERP”), in which the state issues rebates on equipment purchases based on the reduction in emissions that the new equipment yields. Producers can see the capital cost of new equipment halved via this program, while updating their fleets, cutting operating costs, and reducing emissions simultaneously. What a surprise, green producers and great producers are once again one in the same.

As we closeout this comparison of green producers to great producers, it’s important to understand this is not an either/or scenario. The two are not mutually exclusive. Becoming a green producer doesn’t mean being a high-cost operator. As we’ve demonstrated in this series, the opposite is often true. Many of the factors that make an operator great also make them green. Best of luck in your chase for great, and be sure to celebrate the green that comes with it

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About the author:

Richard CroweRichard Crowe is senior consultant for Inlet Capital Group. He has nearly 20 years of experience in plant and area level operations management. He can be reached at rcrowe@inletcapitalgroup.com or 561-529-5569.

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