Power and renewables

DNV conducts a market and technology energy storage scan for a mining company in Australia

Independent technical advisory services on energy storage technologies to support the mining company’s drive for zero-emissions

Three key benefits:

  • Independent specialist assessment on energy storage technologies
  • Levelized cost of storage modelling
  • Recommendations formulated for energy storage solutions suitable for mining sites

About the customer

The customer is a global mining company based in Australia.

The customer challenge

Reducing operational emissions is integral to the customer managing climate risk and aligning with investor expectations in its  transition to a low-carbon economy. The customer had established both short-term and longer-term targets with respect to operational greenhouse gas emissions. Zero emissions electricity is a key driver to achieve the customer’s decarbonization goals and energy storage has been identified as a key component of a zero-emissions supply solution.

To support this goal, the customer required a technical advisor to conduct a comprehensive analysis of current and upcoming energy storage solutions. Pertinent metrics related to each storage type had to be identified or estimated, to allow analysis of these different storage technologies.

DNV’s solution

Performing the market and technology energy storage scan involved an analysis of stationary energy storage technologies that could create value for the mining company and support the customer’s goal of zero emissions electricity. DNV researched  potential storage technologies and identified the most promising energy storage solutions.

In order to complete the technical analysis, DNV looked into the technical merits of each storage technology, assessing its characteristics, risks, potential mitigation plans and commercial maturity. The storage technologies’ applications, economics and key barriers were also considered. Once the top technologies were identified, a shortlist of target suppliers for each technology was also prepared.

As part of the technology assessment, values were assigned to each considered solution which was based on a combination of low cost and high social value. The social value included benefits associated with the creation of local development opportunities, post-mining community assets, jobs, the ability to reduce waste or the utilization of existing waste products.

Benefits to the customer

DNV delivered a comprehensive market study on energy storage technologies which assisted the customer in evaluating and prioritizing the different energy storage technologies available. The benefits, value opportunities and related costs for each storage technology were assessed. Recommendations on the storage solutions that aligned most closely to the customer’s operations or supported the potential use of their unused mining assets were presented.

Key findings from the report included:

  • Lithium-ion's use in stationary energy storage offers price and maturity advantages as a result of the uptake of electric vehicles using this technology
  • Decommissioned mining assets could be used in some storage technologies like gravity-based storage, compressed air and pumped hydro
  • Although levelized costs of electricity and storage are good starting points, it can miss key elements of the costs of capital due to regional variability