News and Blog

Unique Power Contracts a Crucial Step Forward to Net Zero in the Mining and Resources Sector
Blogs, ESG, In the News, News

Unique Power Contracts a Crucial Step Forward to Net Zero in the Mining and Resources Sector

As discussions continue about the need to reduce emissions within the economy, we at Zenith Energy are taking steps to support the mining and resources sector and demonstrate our commitment to achieving Net Zero, with the introduction of unique power agreements.

November 16, 2021

While the focus more broadly has been on 2050 as the milestone date, we’ve committed to reaching Net Zero much sooner, by 2035, as we believe it presents the right balance of ambition and reality.

Our Power Purchase Agreements, or PPAs, are a key part of that journey, enabling clients to adopt greener, cleaner technologies as they emerge whilst also remaining commercially competitive.

We’re committed to substituting higher emission power generation technologies with renewable energy technologies, at the lowest levelised cost of energy.

As a company, we believe the flexibility and transparency within our PPAs allow clients to move forward with us on the transition to 100% renewable energy.

It’s a result of our commitment to making a change, through the piloting of various greener technologies required for Net Zero and initiating the transition to these, rather than passing it on to others.

The PPAs are an acknowledgment there’s still some way to go before net zero is reached, but our clients won’t be left behind if they sign on now.

Our PPAs guarantee to our clients that as new technology emerges, we will displace technology already in place on site. We’re also providing guarantees around the levelised cost of energy, so clients won’t be locked into higher costs as markets change in the future.

The mining sector is increasingly moving away from fossil-fuels, however it’s clear that challenges remain in terms of storing renewable energy, and the supply of green-fuels to provide dispatchable generation when instantaneous or stored wind and solar energy aren’t available.

Once again, our PPAs are an acknowledgment of those challenges.

We know we don’t yet have all the answers, however our PPAs are now providing the framework for the sector to achieve its Net Zero targets.

Zenith is committed to being part of the solution, and that also involves us collaborating with leading miners to develop storage technologies for the electrification of mines, as well as deploying a fleet of relocatable renewables to assist with decarbonising both future and existing sites.

We would like to be able to say that we can take our clients to net zero by 2035, with a clear roadmap and a clear set of technologies that we’ve tested and proven and are able to deploy and uniquely integrate.

What our agreements do is enable lowest cost of power, and lowest emissions for that power, for the entire tenure of the agreement.

We’re also aware clients have concerns that might deter them from signing on to a long-term contract, and we’re actively addressing these;

  • Technology Redundancy: Clients can be assured that as technology continues to develop, Zenith will remain at the forefront of implementing new technology as it emerges.

  • Future Cost Effectiveness: Clients won’t be locked into a set power price for the entire tenure. As technology becomes more economical and drives down prices, those benefits will be passed on to the client.

  • Not Having a Clear Sustainability Plan: Zenith Energy can provide clients a roadmap for their journey to net zero, with the PPAs to outline the roadmap and milestones along the way. Clients don’t have to wait for the perfect renewable technology to obtain reliable, affordable power that reduces their emissions, they can start now and still benefit from future advancements as they occur with Zenith.

Another critical challenge is the storage of renewable generated energy, and we at Zenith are involved in a number of pilot projects to test and develop long-term mass energy storage solutions.

We’re actively working with Original Equipment Manufacturers to develop the technology, so that we also have the expertise in-house to integrate it.

We don’t want to wait and see, we are figuring it out so that we can take our clients on that journey with us.

Share this article