We have identified the systematic management of energy and carbon across our business as a key focus area for our HSEC strategy. For this reason we have started work on determining how an internal carbon target might be applied across our business. This project will consist of a phased review across our commodity businesses, with the following steps:
- Maintaining an understanding of our energy and carbon footprint on a long-term business planning basis
- Reviewing historic and existing energy and carbon initiatives at individual assets and sharing these learnings across the Group
- Deploying a common set of guidelines, templates and tools to assist our assets in assessing, costing and ranking potential energy and carbon reduction opportunities
- Identifying options for achieving meaningful reductions across the Group, including energy savings, efficiency measures, abatement or mitigation
- Determining how a carbon target could be effectively and meaningfully applied either to parts of our business or the entire Group
Focusing on material assets
Glencore’s 25 highest emitting sites account for 70% of the Group’s total Scope 1 and Scope 2 emissions. Our emissions reduction activities will initially focus on sites within this set.
Within that set, the majority of our GHG emissions originate from ferroalloys and coal assets. Over half the GHG emissions from the set are derived from smelters, refineries or coal mines, with most of those facilities located in Australia and South Africa.
Our carbon target project will initially focus on our ferroalloys and coal businesses to determine what, if any, additional meaningful energy savings or emission reductions can be made by these assets.
Emission reduction pilots and projects
Glencore is committed to a role in the reduction of global GHG emissions. For some time, we have invested in a range of projects and initiatives to reduce emissions, both from our operations and the use of our products.
Initiatives from around the world
Using waste coal mine gas for power
We capture methane emissions from our Australian coal operations which we convert into energy which is used onsite. This is used to supplement existing energy sources at a number of assets. Total installed capacity: 44MW.
Flaring waste coal mine gas
We have installed flares at our Australian coal mining operations that have the necessary supply and concentration of methane; these use coal seam gas drainage to capture methane gas, then flares to burn it off, producing carbon dioxide (which has a lower GHG impact) and water vapour.
Wind power in Quebec
Raglan Mine, our nickel-copper mine in Nunavik, northern Quebec, has constructed a 120m high wind turbine and storage facility, the largest in the province. Energy is Raglan Mine’s second largest budget item, as its remote location means it cannot connect to the hydroelectric grid or natural gas network. A combination of climate change considerations, environmental impact limits and rising diesel costs gave us a strong business case for exploring renewable energy solutions. Arctic weather conditions at the site provide some of the world’s richest wind resource.
Raglan Mine began investigating opportunities to include wind power in its energy mix. The project was unprecedented in scale. It was a private-public partnership between Raglan Mine, TUGLIQ Energy (a Canadian power producer specialising in remote and complex energy diversification for mining sites) and the federal and provincial governments.
In its inaugural year, the 3MW wind turbine and storage facility has already saved 2.1 million litres of diesel and reduced GHG emissions by 5,850 tonnes. Based on these results, we estimate that the turbine will save over $40 million in fuel-related costs over its projected 20- year lifetime.
Water power in Kazakhstan
In Kazakhstan, Kazzinc operates the Bukhtarma hydroelectric plant, which has a total generating capacity of 675MW. The plant is integrated into Kazakhstan’s national electricity grid as a peak producer.
Supporting research and studies
In addition to the work we are doing to reduce GHG emissions, we continue to support low-emission coal technology projects and GHG-related studies, including:
- The Callide Oxyfuel project: a AUD245 million large-scale demonstration project in Queensland, Australia. This world-first project proves the suitability of oxyfuel technology for capturing CO2 from new and existing coal-fired power stations. Completed in March 2015 at the Callide A power station, it involved burning coal in a mixture of oxygen and recirculated exhaust gases instead of air for 10,000 hours, providing a concentrated stream of CO2 suitable for storage. The project is a joint venture between CS Energy, the Australian and Japanese governments, ACA Low Emissions Technologies (ACALET), Glencore and Schlumberger, as well as Japanese participants J-Power, Mitsui & Co Ltd and IHI Corporation.
- The CTSCo CO2 storage project: an upcoming carbon capture and storage project and CO2 hub in the Surat Basin, Queensland. With funding support from ACALET and the Australian and Queensland governments, CTSCo has undertaken a pre-feasibility study (including a 1,200m deep exploratory well into the storage zone) and is undertaking a feasibility study at a total cost of AUD40 million. The work involves a 3D seismic survey, updating of a CO2 storage plume model and post-combustion capture CO2 source and transport studies in conjunction with a coal-fired power station.