Title

Gone With the Wind – Supplementing Diesel with Wind Energy at a Remote Iron Ore Mine; by Michael Hadfield and Jason Sivich (Econ

Presenter Information

Michael Hadfield
Jason Sivich

Document Type

Oral Presentation

Location

SURC 202

Start Date

16-5-2013

End Date

16-5-2013

Abstract

Throughout the world our natural resources are becoming increasingly difficult to find and excavate, pushing many operations to more remote areas. A consequence of more isolated operations is the high demand for some form of energy to power their facilities. In Nunavut, Canada, a mining company within the Arctic Circle is looking to supplement its diesel fuel needs with wind energy–a relatively inexpensive renewable resource. A mining facility of its capacity requires a substantial amount of diesel fuel, an expensive asset to transport and store, to operate everything from its mining equipment to its onsite living quarters. Using documented and projected diesel and wind electrical generation capital expenditures and operations and maintenance (OandM) costs, technical data on operating efficiencies, and projected fuel costs, we can assess the potential profitability of wind power supplementation. Through our research, we can project that with a twenty-year operational life of the wind facility, the mine can save $CDN150 million on energy costs. This project is a stepping-stone in opening the eyes for venture capitalists to invest in companies transitioning to renewable energy sources.

Faculty Mentor(s)

Charles Wassell

Additional Mentoring Department

Economics

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May 16th, 3:20 PM May 16th, 3:40 PM

Gone With the Wind – Supplementing Diesel with Wind Energy at a Remote Iron Ore Mine; by Michael Hadfield and Jason Sivich (Econ

SURC 202

Throughout the world our natural resources are becoming increasingly difficult to find and excavate, pushing many operations to more remote areas. A consequence of more isolated operations is the high demand for some form of energy to power their facilities. In Nunavut, Canada, a mining company within the Arctic Circle is looking to supplement its diesel fuel needs with wind energy–a relatively inexpensive renewable resource. A mining facility of its capacity requires a substantial amount of diesel fuel, an expensive asset to transport and store, to operate everything from its mining equipment to its onsite living quarters. Using documented and projected diesel and wind electrical generation capital expenditures and operations and maintenance (OandM) costs, technical data on operating efficiencies, and projected fuel costs, we can assess the potential profitability of wind power supplementation. Through our research, we can project that with a twenty-year operational life of the wind facility, the mine can save $CDN150 million on energy costs. This project is a stepping-stone in opening the eyes for venture capitalists to invest in companies transitioning to renewable energy sources.