South32 will switch from one fossil fuel to another at its Worsley alumina refinery in Western Australia as the coal-fired era draws to a close in the state and the company waits for viable renewable energy alternatives to emerge.
Graham Kerr-led South32 said that it would need to convert Worsley from coal to a gas-powered operation before any transition to renewable options that was dependent on technology breakthroughs.
The loss-making Griffin Coal mine near Collie is on the brink of being tipped into receivership and the WA government announced in June that it would shut down state-owned coal power stations by the end of the decade, casting a shadow over 1200 jobs.
It is understood South32 has been looking at contingency plans for coal supply to Worsley while it studies energy transition options. The refinery makes up 17 per cent of South32’s global scope 1 and 2 emissions, behind only Hillside Aluminium in South Africa (59 per cent).
In its Sustainable Development Report released on Friday, South32 said there were technical complexities in weaning Worsley off coal and flagged investing in shared energy infrastructure in WA’s south-west.
“Large-scale deployment of renewable energy such as solar photovoltaic (PV) and wind, which do not generate steam directly, would require a change to Worsley Alumina’s process and energy infrastructure, and substantial expansion and modification of the energy grid would be required to deliver renewable power at the necessary scale for industrial users in the region,” it said.
“Therefore, we expect to decarbonise Worsley Alumina in two stages. We are working towards a conversion of the onsite boilers to natural gas which would reduce operational greenhouse gas emissions in the medium term.
“Longer term, to help achieve our net zero goal, we are seeking new technologies to support increased electrification and renewable energy for the refinery, which would require broader investment in shared energy infrastructure in the region.”
South32 said it anticipated partnering with entities with expertise in converting the electrical infrastructure and supporting them with long-term power purchase agreements.
The company has been assessing hydrogen but said work-to-date suggested hydrogen was not a viable option.
The coal-gas-renewables scenario for Worsley was detailed as South32 seeks approvals to clear almost 4400 hectares of jarrah forest to expand its Boddington bauxite mining operations that feed the refinery.
South32 abandoned a NSW government process that looked set to add decades of life to the Dendrobium coking coal mine near Wollongong in August and is reshaping its base metals portfolio towards those needed for the electrification of the global economy.
The company’s focus on reducing or replacing energy coal at Hillside Aluminium and Worsley came with a warning about the potential impact on surrounding communities.
“Hillside Aluminium, in South Africa, directly or indirectly employs an estimated 29,000 people, and plays a central role in the domestic aluminium value chain. However, it risks becoming internationally uncompetitive over time if we are unable to secure an affordable source of low-carbon electricity,” the sustainability report said.
“At Worsley Alumina, our plan to transition away from energy coal aligns with the WA government’s announced intention to retire the state-owned Muja and Collie coal-fired power stations. Coal mining has been a significant contributor to the economy of the region with the town of Collie playing a significant role for more than 100 years.
“Both transitions create the potential for job losses connected to the shift away from fossil fuels, and also the potential for the creation of new industry, employment and investment in low-carbon alternatives.”
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