Rio Tinto Punts On British Start-Up To Plug Renewables Gap
The title of this post is the same as that of this article on the Australian Financial Review.
The article is a must-read and these are a few points.
- Highview is readying to take a big punt on the Australian market, with Rio Tinto and the Northern Territory government shaping up as potential customers.
- Highview is very committed to Australia. We think Australia can be as big as the UK for us, given their ambitions,
- Highview is working on concepts with Rio Tinto. And separate from Rio, we are well advanced in the Northern Territory with the government there to provide a solution to decarbonise the power grid.
- The process uses existing hardware from the gas industry, and the plant’s life should be at least 40 years – five times longer than a battery.
- Highview could replace fossil-fuel gas plants in situ, and could also be an alternative to the more complex and capital-intensive option of pumped hydro.
- Highview already had staff operating in Brisbane.
- Highview was negotiating the long-term contract with the government in Darwin, and had engaged Australian banks to start testing the market for a local fundraising.
- In Britain, Highview hopes to be putting four 2.5-gigawatt assets into planning this year – one in Scotland, three with Orsted in England.
As I said, the article is a must-read and it proves to me that Highview is on its way.
Are Goldman Sachs Stitching Together A Large Deal On Energy Storage?
In UK Infrastructure Bank, Centrica & Partners Invest £300M in Highview Power Clean Energy Storage Programme To Boost UK’s Energy Security, I talked about a deal to invest £300 million into energy storage company; Highview Power.
These three paragraphs are from the Highview Power news item, on which I based my post.
Highview Power has secured the backing of the UK Infrastructure Bank and the energy industry leader Centrica with a £300 million investment for the first commercial-scale liquid air energy storage (LAES) plant in the UK.
The £300 million funding round was led by the UK Infrastructure Bank (UKIB) and the British multinational energy and services company Centrica, alongside a syndicate of investors including Rio Tinto, Goldman Sachs, KIRKBI and Mosaic Capital.
The investment will enable the construction of one of the world’s largest long duration energy storage (LDES) facilities in Carrington, Manchester, using Highview Power’s proprietary LAES technology. Once complete, it will have a storage capacity of 300 MWh and an output power of 50 MWs per hour for six hours. Construction will begin on the site immediately, with the facility operational in early 2026, supporting over 700 jobs in construction and the supply chain.
Note.
- The UK Infrastructure Bank is a is a British state-owned development bank.
- Centrica plc is an international energy and services company.
- Rio Tinto is a leading global mining group that focuses on finding, mining and processing the Earth’s mineral resources.
- The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm.
- KIRKBI is the Kirk Kristiansen family’s private holding and investment company founded to build a sustainable future for the family ownership of the LEGO Group.
- Mosaic Capital are an American investment firm.
With six partners, that is just £50 million per partner.
As that sum is very much small change for the likes of these guys and the question of taking an equity stake is not mentioned in Highview Power’s news item, it looks like this deal could be a try-before-you-buy deal with some of the partners or a simple investment with others.
Consider.
- Gresham House, Gore Street and others have proven that investing in lithium-ion batteries give a good return on investment.
- The Carrington long duration energy storage facility will be located near to the 884 MW gas-fired Carrington power station. I suspect that Centrica and Rio Tinto will be interested to see how the hybrid power-station performs.
- Could the Lego Group owners be looking at using solar power, wind power and a LDES to reduce the carbon footprint of their stores?
I would assume, that all the investors would get full details on the performance of the batteries.
Someone To Build The LDES
In Bilfinger Drives Highview Power’s Innovative Storage Project, Accelerating The Energy Transition, I describe how German company will build the Carrington LDES.
The Advantages Of An LDES over a BESS
This is only a short list, of the advantages I see.
- An LDES is easily recyclable.
- The LDES has less exotic materials.
- An LDES can be built from zero-carbon steel.
- Highview are claiming a 40-year life for their LDES.
- Highview is already talking about 200MW/2.5GWh LDES systems.
- Two 200MW/2.5GWh systems working together with a wind or solar farm, can replace a 400 MW gas- or coal-fired station.
- I suspect one of Highview’s LDES systems could be placed offshore, if needed.
I also believe that Highview’s LDES systems could be incorporated into complex chemical plants to increase the efficiency.
Are Goldman Sachs Stitching Together A Large Deal On Energy Storage?
Everything now seems to be in place to build these LDES one after the other, to accelerate the energy transition.
With a good supply of orders and enough money to build each system, I cab see no reason, why several systems a month cannot be built and installed.
I have worked with companies like Goldman Sachs in the past, and I wouldn’t be surprised to find, that they have created the consortium, so that all members get the returns and recognition, they disserve.
Adding Lego Group To The Consortium Could Be A Masterstroke
The Lego Group has lots of stores and theme parks worldwide and a reputation for good design and environmental standards.
Last year, I wrote Bedford Depot’s Massive Solar Roof Helps Thameslink On Way To Net Zero. This was putting a solar roof on a rail depot, but surely buildings like this would be suitable for a Highview LDES.
UK Infrastructure Bank, Centrica & Partners Invest £300M in Highview Power Clean Energy Storage Programme To Boost UK’s Energy Security
The title of this post, is the same as that of this news item from Highview Power.
This is the sub-heading.
Highview Power kickstarts its multi-billion pound renewable energy programme to accelerate the UK’s transition to net zero in Carrington, Manchester.
These three paragraphs outline the investment.
Highview Power has secured the backing of the UK Infrastructure Bank and the energy industry leader Centrica with a £300 million investment for the first commercial-scale liquid air energy storage (LAES) plant in the UK.
The £300 million funding round was led by the UK Infrastructure Bank (UKIB) and the British multinational energy and services company Centrica, alongside a syndicate of investors including Rio Tinto, Goldman Sachs, KIRKBI and Mosaic Capital.
The investment will enable the construction of one of the world’s largest long duration energy storage (LDES) facilities in Carrington, Manchester, using Highview Power’s proprietary LAES technology. Once complete, it will have a storage capacity of 300 MWh and an output power of 50 MWs per hour for six hours. Construction will begin on the site immediately, with the facility operational in early 2026, supporting over 700 jobs in construction and the supply chain.
Note.
- The backers are of a high quality.
- The Carrington LDES appears to be a 50 MW/300 MWh battery.
It finally looks like Highview Power is on its way.
These are my thoughts on the rest of news item.
Centrica’s Involvement
This paragraph talks about Centrica’s involvement.
Energy leader Centrica comes on board as Highview Power’s strategic partner and a key player in the UK’s energy transition, supporting Carrington and the accelerated roll-out of the technology in the UK through a £70 million investment. The programme will set the bar for storage energy systems around the world, positioning the UK as the global leader in energy storage and flexibility.
I suspect that Centrica have an application in mind.
In Centrica Business Solutions Begins Work On 20MW Hydrogen-Ready Peaker In Redditch, I talk about how Centrica is updating an old peaker plant.
In the related post I refer to this news item from Centrica Business Systems.
This paragraph in the Centrica Business Systems news item, outlines Centrica’s plans.
The Redditch peaking plant is part of Centrica’s plans to deliver around 1GW of flexible energy assets, that includes the redevelopment of several legacy-owned power stations, including the transformation of the former Brigg Power Station in Lincolnshire into a battery storage asset and the first plant in the UK to be part fuelled by hydrogen.
As Redditch power station is only 20 MW, Centrica could be thinking of around fifty assets of a similar size.
It seems to me, that some of these assets could be Highview Power’s LDES batteries of an appropriate size. They may even be paired with a wind or solar farm.
Larger Systems
Highview Power’s news item, also has this paragraph.
Highview Power will now also commence planning on the next four larger scale 2.5 GWh facilities (with a total anticipated investment of £3 billion). Located at strategic sites across the UK, these will ensure a fast roll-out of the technology to align with UK LDES support mechanisms and enable the ESO’s Future Energy Scenario Plans.
Elsewhere on their web site, Highview Power say this about their 2.5 GWh facilities.
Highview Power’s next projects will be located in Scotland and the North East and each will be 200MW/2.5GWh capacity. These will be located on the national transmission network where the wind is being generated and therefore will enable these regions to unleash their untapped renewable energy potential and store excess wind power at scale.
So will the four larger systems have a 200MW/2.5GWh capacity?
They could, but 200 MW may not be an appropriate output for the location. Or a longer duration may be needed.
Highview Power’s design gives the flexibility to design a system, that meets each application.
Working With National Grid
Highview Power’s news item, also has this sentence.
Highview Power’s technology will also provide stability services to the National Grid, which will allow for the long-term replacement of fossil fuel-based power plants for system support.
Highview Power’s technology is also an alternative to Battery Energy Storage Systems (BESS) of a similar capacity.
How does Highview Power’s technology compare with the best lithium-ion systems on price, performance and reliability?
Curtailment Of Wind Farms
Highview Power’s news item, also has these two paragraphs.
This storage will help reduce curtailment costs – which is significant as Britain spent £800m in 2023 to turn off wind farms.
Highview Power aims to accelerate the roll-out of its larger facilities across the UK by 2035 in line with one of National Grid’s target scenario forecasts of a 2 GW requirement from LAES, which would represent nearly 20% of the UK’s long duration energy storage needs. By capturing and storing excess renewable energy, which is now the cheapest form of electricity, storage can help keep energy costs from spiralling, and power Britain’s homes with 24/7 renewable clean energy.
I can see several wind farms, that are regularly curtailed would have a Highview Power battery installed at their onshore substation.
Receently, I wrote Grid Powers Up With One Of Europe’s Biggest Battery Storage Sites, which described how Ørsted are installing a 300 MW/600 MWh Battery Energy Storage Systems (BESS) at Swardeston substation, where Hornsea Three connects to the grid.
I would suspect that the purpose of the battery is to avoid turning off the wind farm.
Would a Highview Power battery be better value?
What’s In It For Rio Tinto?
I can understand, why most companies are investing, but Rio Tinto are a mining company. My only thought is that they have a lot of redundant holes in the ground, that cost them a lot of money and by the use of Highview Power’s technology, they can be turned into productive assets.
Collateral Benefits
Highview Power’s news item, also has this paragraph.
Beyond contributing to the UK’s energy security by reducing the intermittency of renewables, Highview Power’s infrastructure programme will make a major contribution to the UK economy, requiring in excess of £9 billion investment in energy storage infrastructure over the next 10 years – with the potential to support over 6,000 jobs and generate billions of pounds in value add to the economy. It will also contribute materially to increasing utilisation of green energy generation, reducing energy bills for consumers and providing significantly improved energy stability and security.
If Highview Power can do that for the UK, what can it do for other countries?
No wonder companies of the quality of Centrica, Rio Tinto and Goldman Sachs are investing.
Rio Tinto Signs Australia’s Biggest Renewable Power Deal As It Works To Repower Its Gladstone Operations
The title of this post, is the same as that of this press release from Rio Tinto.
These three paragraphs outline the deal.
Rio Tinto has signed Australia’s largest renewable power purchase agreement (PPA) to date to supply its Gladstone operations in Queensland, agreeing to buy the majority of electricity from Windlab’s planned 1.4GW Bungaban wind energy project.
The agreement, which follows the announcement last month of a PPA for the Upper Calliope solar farm in Queensland, will make Rio Tinto the biggest industrial buyer of renewable power in Australia and is another major step in the work to repower the company’s Gladstone production assets – Boyne aluminium smelter, Yarwun alumina refinery and Queensland Alumina refinery.
Under the new PPA with Windlab, Rio Tinto will buy 80% of all power generated from the Bungaban wind energy project over 25 years. The project, which is currently in early development, will be built and operated by Windlab at a site in Queensland about 40 kilometres from the town of Wandoan, and 290 kilometres south-west of Gladstone, subject to development and grid connection approvals.
This Google Map indicates the position of Gladstone on the coast of Queensland.
This map brings back memories.
I had hired a Piper Arrow from Sydney and I flew my late wife via Mildura, Adelaide, Coober Pedy, Yulara to Alice Springs taking about a week for it.
From Alice, I flew via Mount Isa to Cairns, which is at the top of the map on the coast.
I remember on leaving Aloce, I asked Air Traffic Control, what time it was in Queensland. The reply was “They’re half-an-hour ahead and twenty-five years behind!”
Mount Isa was infamous on the trip, as it was there we met the only disagreeable Aussie on the whole adventure. Unfortunately, he was in charge of the fuel and didn’t want to serve us. Probably, because he was drunk.
Finally, we got away and spent a couple of nights at Cairns, where we drove up the coast and explored the Daintree.
It was then a short hop for the plane onto the Battier Reef, where we stayed at a resort called Bedarra, which was probably the most exclusive place we ever stayed.
After a few days it was back in the plane and down the coast to Brisbane. That was a strange flight, as all Australian airline pilots were on strike, so we had the airspace to ourselves. At Mackay, the refuellers were so lacking in business, they were all too happy to fuel the plane.
After a couple of days in Brisbane, we flew the plane to Goondawindi, where we picked up our eldest son, before flying back to Sydney, where we took a flight home.
It was a memorable trip and I now wish, that we’d extended it by a couple of weeks.
Conclusion
Australia is a land of boundless solar energy, which is why we went there on holiday and Rio Tinto will be doing all there aluminium smelting by the use of renewables.
I can see in the future that the UK’s boundless wind energy will attract high energy businesses to the UK.
Rio Tinto’s Big Energy Project Attracts Multiple Bidders
The title of this post, is the same as that of this article on Mining Technology.
The article has this subtitle.
The company seeks to offset its power consumption with a massive renewable plant.
These two paragraphs introduce the project.
British and Australian mining giant Rio Tinto has attracted multiple bids for a massive renewable power infrastructure project.
The company currently seeks suppliers to build up to 4GW of renewable generation for its alumina and aluminium operations in Queensland, Australia. Speaking to the Melbourne Mining Club, the company’s CEO of Australia, Kellie Parker, said that it had received proposals for “a lot more than 4GW”. Parker also said that construction of the project “would not be easy” due to the cost of construction for Australian projects.
In the UK, we may talk of wind farms like Hornsea, which could produce 6 GW, but the Aussies can produce similar amounts of energy from the sun.
This will be the fourth major renewable power development in Australia to be announced in the last few months.
- The Asian Renewable Energy Hub could generate up to 26 GW in Western Australia.
- I wrote about Andrew Forrest’s ambitions in Andrew Forrest Snaps Up Pilbara And Gascoyne Cattle Stations For Green Energy Production.
- The Australia-Asia Power Link will export solar power from Australia to Singapore.
Australia is certainly looking to power the world.
Energy Storage
Rio Tinto are also talking about energy storage, as other systems of this type and size do. Could this be one of a number of Australian projects mentioned on the Highview Power web site?
BHP To Trial Battery Locos On Pilbara Iron Ore Network
The title of this post, is the same as that of this article on Railway Gazette.
The article summarised all the battery-electric locomotives ordered to bring the iron ore to the coast by mining companies; BHP, Fortescue, Rio Tinto and Roy Hill.
The article indicates some of the innovative operations that will be tried. This is a sentence from the article.
A key element will be to assess the potential for capturing regenerated braking energy on the loaded downhill runs, and storing it to power empty trains back uphill to the mines.
I would hope that the South Wales Metro, the Buxton branch and the East Kilbride branch will use similar energy conservation techniques.
Aviva To Eject Company Directors If Climate Goals Are Not Met
The title of this post is the same as that of this article in The Sunday Times.
Increasingly, I am seeing company boards taking decisions, that will cut their company’s carbon footprint.
Only yesterday, I wrote Suppliers Sought For New Bi-Mode Locomotives For TransPennine Express And Great Western Railway, which was about First Group’s moves to decarbonise some of their locomotive-hauled trains.
I have also written about BHP, BP, Fortescue, Go-Ahead and Rio-Tinto taking action to decarbonise.
It does seem that some company boards are following Aviva’s guidance, but then it is in the directors own interest.
Many directors of large companies own shares and in a big public company, these are publicly traded.
I would suspect, that if a company board, do the right thing in terms of decarbonisation, that the share price will rise.
So by following the accepted climate science, they are actually helping themselves.
If they don’t believe that, then aggressive shareholders from Norwich will punish them.
Rio Tinto Orders Wabtec FLXdrive Battery Locomotives To Reduce Emissions
The title of this post, is the same as that of this press release from Wabtec.
This is the introductory paragraph.
Wabtec Corporation (NYSE: WAB) and Rio Tinto announced today an order for four FLXdrive battery-electric locomotives to support sustainable operations of the mining company’s rail network in the Pilbara region of Western Australia. The 100-percent, battery-powered locomotive will help Rio Tinto’s effort to achieve a 50-percent reduction in Scope 1 and 2 carbon emissions by 2030.
Some other points from the press release.
- The locomotives have 7 MWh batteries.
- The first locomotive will be delivered in 2023.
- The FLXdrive is anticipated to reduce the company’s fuel costs and emissions in percentage by double digits per train.
This paragraph describes how the FLXdrive locomotives will be used.
The mining company plans on using the locomotives in multiple applications including as a shunter in the railyard and ultimately in mainline service. In mainline operations, Rio Tinto currently uses three diesel-electric locomotives in a consist to pull trains with 240 cars hauling about 28,000 tons of iron ore. The FLXdrives will transition from the diesel locomotives in mainline service to form a hybrid consist, and recharge during the trip through regenerative braking and at charging stations. Wabtec’s next generation energy-management software system will determine the optimal times to discharge and recharge the batteries along to route ensuring the most fuel-efficient operation of the entire locomotive consist during the trip.
I can see this approach leading to even bigger fuel and emission savings.
Especially, if Wabtec developed a compatible locomotive, that was powered by hydrogen.
This was rumoured in FLXdrive ‘Electrifies’ Pittsburgh, where a partnership between Carnegie-Mellon University (CMU), Genesee & Wyoming and Wabtec to create the Freight Rail Innovation Institute was described.
Conclusion
There certainly seems to be a consensus between some of the world’s largest mining and rail companies about the future of heavy freight trains to support the mining industry.
The Anonymous Widower 