Decarbonising the energy intensive and typically remote operations of Australia’s leading mining and resources companies will be a major undertaking.
These organisations not only account for a significant proportion of Australia’s exports, but for around 15 per cent of our country’s total energy consumption, most of which is derived from fossil fuels.
If we are to reach net zero by 2050, it is essential that we have a plan for decarbonisation across the resources sector.
Some of the largest miners across the country have committed to cutting their operational emissions by 30 per cent, 50 per cent and some even to real zero by 2030.
The huge investment and substantial new infrastructure required to achieve these emissions ambitions presents a significant opportunity.
The investment required to decarbonise Western Australia’s minerals rich Pilbara region alone is estimated to be about $15 billion.
Much of this will be achieved by decarbonising heavy haul trucks, machinery and locomotives through the displacement of diesel. In fact, about two thirds of the 2050 forecast for electricity demand in the Pilbara primarily results from the transition away from diesel fuel.
But turning these opportunities into reality won’t be without its challenges. Alongside the need to introduce more renewable energy, there are two key challenges to address.