Barriers and opportunities to the implementation of clean energy initiatives: a platinum mine case study

Abstract

Rapidly increasing energy demand, high electricity costs, unreliable grid supply and growing concern about the environmental impacts associated with the consumption of fossil fuel energy, call for implementation of sustainable clean energy in the mining industry.

Mining is recognised as an energy-intensive industry that is heavily dependent on fossil fuels as a source of energy used in various processes and activities (Levesque, 2015:41). Most platinum producers highly depend on electricity as a source of energy, especially electricity sourced from the national utility supplier Eskom, which is mostly coal-based (Ryan, 2014:299-303). The global and national energy supply is dominated by fossil fuels, which increased during the Industrial Revolution. The consumption of fossil-based energy causes detrimental environmental impacts,which include depletion of natural resources and emission of Green House Gases and carbon dioxide (Kusi-Sarpong, 2015:2; Dincer & Acar, 2015: 586). Because this industry relies heavily on fossil fuel energy, it is consequently one of the highest GHG emitters (Ryan, 2014).

Lastly, high electricity costs, unreliable grid supply facing South African mining companies and the growing pressure from investors and stakeholder expectation is another challenge affecting the industry (PWC, 2020:16; Gangazhe, 2016:8). To address the energy challenges facing the industry and support the Paris Agreement and associated global and national frameworks' goal to address climate change impacts, transition to alternative sustainable energy is essential (Dincer & Acar, 2015: 586; Ryan, 2014).

This research aims to explore the barriers and opportunities that influence the implementation of clean energy initiatives in platinum mining.

The research aim was achieved through the following objectives:

- Identifying and describing existing or proposed clean energy initiatives in the platinum mining case study. - Identifying and characterising the barriers to implementing clean energy initiatives in platinum mining. - Identifying and evaluating opportunities for implementing clean energy initiatives in platinum mining. The research methodology adopted in this research is based on a case study approach, using qualitative methods which involve collection of data through semi-structured interviews and document analysis. The research approach followed in this study involves adopting of existing theories on barriers and opportunities influencing the implementation of clean energy initiatives applied to a South African platinum mine case study. The specific case study was selected because of its position as a world-class platinum producer that has implemented clean energy initiatives and investigated opportunities to improve and transition to cleaner technologies while improving environmental performance.

It became evident from the case study that a lack of technical expertise required to implement and maintain clean energy technologies is a significant barrier that influences the implementation of clean energy initiatives. This was followed by the intermittency of renewable resources barrier, which caused inconsistent supply of energy to the operations. High start-up capital cost to implement clean energy technologies and the inability of fossil fuel energy to provide a positive business case due to its abundance, accessibility and affordability were the most important economic and financial barriers identified in the case study. The lengthy timelines and processes required to obtain necessary permits and approvals from various licensing authorities and government institutions became an important institutional barrier.

Increasing the skill set of workforces responsible for implementing clean energy technologies is a positive opportunity that stood out in the study to bridge the knowledge gap caused by a lack of technical expertise barrier. This can also be achieved through upskilling programmes in higher institutions and facilities. The opportunity to use hybrid technologies is a practical opportunity proposed to increase the reliability of energy supply to the operations and to overcome the intermittency of renewable resources barrier.

Fiscal instruments such as public funding and incentivising industries that implement clean energy initiatives can be used by the government to address the high start-up capital barrier and enhance the attractiveness of clean energy technologies. This public funding can also be extended to Research & Development in clean energy, pre-investment studies and project start-up. Lastly, mining companies, government, and other energy-intensive industries can form a consortium collectively to fund and develop clean energy projects to overcome this barrier. On a positive note, in addition, identifying the opportunities to address the barriers, the case study operations highlighted the actions that were successfully implemented by these operations to overcome most of the barriers identified that influence the implementation of clean energy initiatives.