17. June 2016

Renewable Mining in Australia: juwi and KPS Form Strategic Alliance for Hybrid Systems

juwi Australia and KPS, a subsidiary of Perth based Pacific Energy Limited, will jointly offer remote mining companies a sustainable and reliable power. By working together, the companies will provide electricity from a combination of solar, batteries, diesel and/or gas generation assets under a Build, Own, Operate structure without the need for capital outlay from the mine.

The integration of intermittent renewable energy with conventional diesel/gas generators in the mining sector presents a number of technical and commercial challenges. The recent completion of a 10.6MW solar + 6MW battery system integrated with a 20MW diesel power station has helped lay the foundation for a new method of sustainable mining.

juwi Australia is pleased to advise that it entered into a formal strategic alliance (the “Alliance”) with the Australian power generation specialist, KPS, a subsidiary of Pacific Energy Limited (ASX: PEA; "Pacific Energy").

The Alliance will focus on remote projects seeking to integrate solar and battery energy with traditional diesel or gas fueled power stations, bringing together the capabilities, technology and resources of two market leaders in their respective fields – KPS in thermal power and juwi in solar power.

KPS and juwi have been working closely together for some time on Sandfire Resources Ltd’s (ASX: SFR; "Sandfire") recently announced DeGrussa hybrid power station, where the existing KPS 20MW power station was successfully integrated with a 20 hectare 10.6MW solar and 6MW battery system.

This innovative project is the largest integrated off-grid solar and battery storage facility in Australia and reportedly, one of the largest in the world. The integration required development of sophisticated control systems in order to manage load swings and maintain uninterrupted power supply and has been successfully commissioned.

juwi commenced the development of the DeGrussa project in 2013, procured $20.9m ARENA funding in 2014 and further funds from Neoen/CEFC in 2015 when the project commenced construction. juwi provided the turn-key Engineering, Procurement, Construction, Operation and Maintenance service. The project was fully integrated and commissioned by juwi in May 2016 and is now provided Sandfire Resources with low cost renewable Energy.

Commenting on the signing of the formal Alliance Agreement, Pacific Energy Managing Director, James Cullen said "The partnership with juwi provides us with immediate solar and battery storage capabilities for existing and new customers seeking renewable power solutions. The experience and expertise of juwi leap-frogs us ahead in terms of delivering utility scale solar capability to the market".

"Importantly, we have developed the knowhow behind successfully integrating and operating the hybrid system in the challenging and changing conditions encountered in mine site operations" he said.

juwi Australia’s Managing Director, Mr Andrew Drager said "We are extremely pleased with the formal alliance with KPS. For over nine months we have been working together on the DeGrussa project and formed an excellent working relationship. We look forward to working on future projects together as the mining industry ventures further into hybrid power generation".

"We have made it possible for remote mining companies to make a meaningful improvement in sustainability, while increasing local employment and reducing costs, without the need for upfront capital outlay. We look forward to implementing these solutions in conjunction with KPS"