Case Study "Zimbi"

Project “Zimbi”
A PV/Diesel Hybrid Power Case Study
MINING
CRONIMET Mining AG is Mining >>> Processing >>> Trading >>> Energy
1. CRONIMET Mining Group
2. Innovative Trade Finance: Commodity Energy Swap
3. Case Study “Zimbi” – PV/Diesel Hybrid Power
4. Contact
2
CRONIMET Mining Group
Intro
3
1. CRONIMET Mining Group
2. Innovative Trade Finance: Commodity Energy Swap
3. Case Study “Zimbi” – PV/Diesel Hybrid Power
4. Contact
4
Innovative Trade Finance
Commodity
y for Energy
gy Swap
p
• Innovative Trade Financing
• No Up-front Cost for Miner
• Secured PPA with Mineral Ore
• Energy Hedge against Diesel
• Lower Annual Opex for Miner
• Reduced Cash Conversion Cycle
5
1. CRONIMET Mining Group
2. Innovative Trade Finance: Commodity Energy Swap
3. Case Study “Zimbi” – PV/Diesel Hybrid Power
4. Contact
6
Case Study – “Zimbi”
Chromite Mine in South Africa
“W sought
“We
ht immediate
i
di t di
diesell reduction
d ti and
dd
demanded
d d llower opex””
Moritz Hill, Director, CRONIMET Chrome South Africa (Pty.) Ltd.
Ch
Chromite
it Mi
Mine, South
S th Africa
Af i
CRONIMET Chrome
Ch
South
S th Africa
Af i (Pty.)
(Pt ) Ltd.
Ltd
Location and Deposit
North Western Bushveld complex, 250 km NW of
Johannesburg
Size
2,444.2 ha
Resources
5.6 Mt LG 6 and MG with 38% Cr203 (opencast)
33.0 Mt LG 6 with 43.6% Cr203 (underground)
Mining Right
30 years (granted in March 2010)
Processing
Up to 40 ktpm (opencast)
By developing the underground mine up to 90 ktpm
Products
Energy Resource
Energy Consumption
Mining Product: Chromium ores and concentrates
Captive Diesel Fired Generators / Photovoltaic
Hybrid
1.6 MVA
7
Case Study – “Zimbi”
PV/Diesel Hybrid
y
System
y
((Thabazimbi))
Thabazimbi PV Diesel Hybrid
y
Plant
Location:
South Africa
Installed Diesel Power:
1.6 MVA
Voltage:
g
525V
Annual Diesel Burn (Liters)
1.9 million liters/yr
Annual Diesel Fuel Cost
$ 2.18 million/yr
Installed PV Power:
1 MW
PV Penetration Ratio:
60%
Annual PV Energy p.a.:
1,800,000 kWh
Ratio of PV to Total Energy:
up to 30%
Annual Diesel Savings:
450,000 liters
Planning, Development &
Financing:
Three Months
Construction:
Three Months
Commissioning:
November 2012
From Concept to Commissioning
in 6 Months
8
Case Study – “Zimbi”
Planning
g
DEVELOP
BUILD
OPERATE
> > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > >
Solar irradiation energy yield (per year):
1850 kWh/kWp
1 MW of Photovoltaic (97% Availability)
x 1000 kWp
Total Annual Electricity from PV
1,800,000 kWh
Genset Efficiencyy Ratio ((1/4 liter = 1kWh))
x 0.25
Annual Diesel Savings (liters)
450,000 liters
Cost of Diesel / liter (2012)
x $ 1.15 / liter
Annual Diesel Savings ($$$)
$500,000
PV Plant E
Expense
pense (CAPEX)
$2 66 million
$2.66
9
Case Study – “Zimbi”
Planning
g - Financial Feasibility
y
DEVELOP
BUILD
OPERATE
> > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > >
4,50 $
4,00 $
CAPEX
Cumulated Diesel OPEX Savings
Diesel g
gensets
2 x 800 kVA
PV Plant
1000 kWp
2,50 $
CAPEX
$ 2.66 million
2,00 $
O&M
1% of CAPEX
Di
Diesel
l Price
P i (2012)
$ 1.15
1 15 / liter
lit
PV OPEX
3 50 $
3,50
3,00 $
Dies
sel
PV Break Even 3.6 years
1,50 $
1,00 $
0,50 $
Annual Diesel Fuel Savings
Diesel Inflation p.a. 12%
PV
M
Millionen
Simple PV Break Even vs. Diesel Operating Costs
- $
FY1
FY2
FY3
FY4
FY5
Breakeven in just under four years!
10
Case Study – “Zimbi”
Planning
g – Optimal
p
PV Penetration
DEVELOP
BUILD
OPERATE
> > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > >
Plant Controller Necessary
No Controller
PLoad
30%
Genset Baseload
t
PLoad
L
LCOE
30%
30%
PLoad
Genset
Baseload
t
Optimized
30%
0,1
0,2
0,3
Genset
Baseload
0,4
t
0,5
0,6
0,7
0,8
PV Diesel Ratio
11
Case Study – “Zimbi”
Planning
g - System
y
Analysis
y
DEVELOP
BUILD
OPERATE
> > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > >
Interface 1
Industry proven grid connection: > 30GW in Germany alone
Photovoltaic
1071 kVA
X
Load Demand for Energy Eload
PV Energy
EPV
l d
load
DC
Y
AC
Diesel Energy
1,6 MVA
EDiesel
G
800 kVA
G
800 kVA
997,92 kWp
EDiesel = Eload - EPV
Interface 2
Necessary for
system stability
PV Monitoring
and Control
Power System
Monitoring &
Control
12
Case Study – “Zimbi”
Planning
g - System
y
Analysis
y
DEVELOP
BUILD
OPERATE
> > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > >
Dynamic Behavior of Diesel Power System
Static System Analysis
Well known Transient Response
• PV must not influence system stability
• Sufficient Spinning reserve
Apply load or
PV power drop
 Speed dip
• PV must not damage the Diesel Generator
• Base Load of 30% at all times
Remove load or
PV power increase
 Speed increase
Dynamic Behavior of PV Power Plant
Weather Data
Pgenset_max
1
slightly
clouded
Load
Pgenset_min
30%
P/P(STC
C)
0,8
PV
clear sky day
cloudy day
06
0,6
0,4
0,2
Genset
0
Time (24 Hours)
13
Case Study – “Zimbi”
Financing
g – Discounted Diesel Savings
g Analysis
y
DEVELOP
BUILD
OPERATE
> > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > >
Diesel
Diesel CAPEX
CAPEX &
& OPEX
OPEX
Key Value Drivers
Costs Costs
HybridPV
System
Costs PV
FY2
20
FY2
20
FY20
0
FY1
FY1
19
FY19
99
FY1
FY1
18
FY18
88
FY1
FY1
17
FY17
77
FY1
FY1
16
FY16
66
FY1
FY1
15
FY15
55
FY1
FY1
14
FY14
44
FY1
FY1
13
FY13
33
FY1
FY1
12
FY12
22
FY1
FY1
11
FY1
11
FY1
FY1
10
FY10
00
FY
Y9
FY
Y9
FY9
9
FY
Y8
FY8
8
FY
Y8
FY7
7
FY
Y7
FY
Y7
FY6
6
FY
FY
Y6
Y6
FY5
5
FY
Y5
FY
Y5
FY4
4
FY
Y4
FY
Y4
FY3
3
FY
Y3
FY
Y3
Diesel Savings
2
FY2
FY
Y2
FY
Y2
5,6
5,6 $$
5,2
5,2 $$
4,8 $$
4,8
4 44 $$
44,4
4,4
4,0 $$
4,0
3,6 $$
3,6
3,2 $$
3,2
2,8 $$
2,8
2,4 $$
2,4
2 00 $$
22,0
2,0
1,6 $$
1,6
1,2 $$
1,2
0,8 $$
0,8
0,4 $$
0,4
0,0 $$
0,0
CAPE
X
CAPE
EX
FY
1
FY
Y1
FY
Y1
Millions
Millionen
Millions
Annual Day-time Energy Cost Savings
Total Annual Litres
Total Annual Daytime Litres
Diesel Price/Litre (Year 1)
Annual Diesel Inflation
1,900,000
1,051,200
$ 1,15/L
12%
PV Investment (CAPEX)
PV Plant Operating
p
g ((Year 1))
Annual Diesel Savings
$ 2.66 million
$ 34,000
,
450,000
Plant Operating Life
20-years
NPV @ 15% Discount Rate:
$ 3,150,000
3 150 000
NPV of Diesel Savings = $ 3 million
14
Case Study – “Zimbi”
Construction & System
y
Integration
g
Onsite System Integration Period of Two Months
15
Case Study – “Zimbi”
Completed
p
1 MW PV - 1.6 MWA Diesel Hybrid
y
Power System
y
PV Power:
Area:
Electricity:
Diesel Savings:
CO2 Displacement:
1MW Installed
1.5 Hectares
1,800 MWh/year
450,000 liters/year
~ 2000 tones/year
16
Case Study – “Zimbi”
Operating
p
g Since November 2012
DEVELOP
DEVELOPMENT
FINANCE
BUILD
BUILD
OPERATE
OPERATE
> > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > >
PV Power Plant Control
Hi h Daily
High
D il Fuel
F l Savings
S i
Up to 60% Daily Fuel Savings
Solea Renewables
17
Case Study – “Zimbi”
Operating
p
g Since November 2012
DEVELOP
DEVELOPMENT
FINANCE
BUILD
BUILD
OPERATE
OPERATE
> > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > >
Proof Of Concept
›
Successful Operation since November 2012
Maintenance
›
Panel cleaning in dry season necessary two
times a month
›
Cleaning of substation and inverter fans four
times per year
Operational Experience
›
Data Analysis and asset management due to
power data logging (Solar, Power, efficiency)
›
Online Monitoring provides worldwide service
access to reduce travel costs
18
1. CRONIMET Mining Group
2. Innovative Trade Finance: Commodity Energy Swap
3. Case Study “Zimbi” – PV/Diesel Hybrid Power
4. Contact
19
Contact
Thank You
Rollie Armstrong
Moritz Hill
Managing Director
Director
CRONIMET Mining Power Solutions GmbH
Ottobrunner Str.
Str 39
82008 Unterhaching
CRONIMET Chrome South Africa (Pty.) Ltd.
Block B Willowvale Office Park
15 Van Hoof Close, Little Falls 1735
Johannesburg, South Africa
Tel.:
+49 89 919 290 173
Mobil: +49 176 609 1310 6
E il rollie.armstrong@crm-ps.com
Email:
lli
t
@
Tel.:
+27 11 958 0544
Fax:
+27 86 631 7742
E il moritz.hill@ccmsa.co.za
Email:
it hill@
20