How were Aggreko’s results during 2023?

In mining, Aggreko achieved 7% better results than projected. Concerning technology, we are starting to work hard on accompanying customers in decarbonization. We identified four clients for whom we can start providing storage technology, change solutions to hybrid ones, and change thermic operations to solar ones. We have a strong service contract with Pelambres and are actively working with SQM. What distinguishes Chile from the rest of the world?

Chile has been a pioneer in the electric market, and due to accessibility to renewable resources, the cost of energy is low in comparison to other jurisdictions. With the right initiatives, Chile has the potential to transform itself into a world reference in the production of lithium.

In society, mining is a highly questioned industry for the impact it has on the natural world. However, Chile is fundamentally a mining country. The economy is supported and maintained by the activities of the sector. Unlike jurisdictions like Peru, where social problems can get in the way of mining activities, Chile has a regulatory framework that allows for control. Aggreko is looking to expand into the lithium market in Catamarca, Salta, and Jujuy. Can you discuss these plans?

In 2022 we decided to open a yard in Salta to go along with the growth in northwest Argentina with lithium. From this strategic location we serve our businesses in the three provinces. Today we can say that it was a good decision. We currently have more than 30 MW of generation and we operate with all mining companies that are in different stages of development of their projects. What technologies is Aggreko investing in to help clients reach sustainability goals?

We want to change the technology of air compressors so that diesel is replaced by electric compressors. This will lead to no emissions. Nearly all the large mining companies in Chile are committed to reducing emissions by 30% by 2030. We aim to facilitate the adoption of new, cleaner technologies to assist them in achieving this objective. What is the process of changing energy sources from diesel to renewable?

The process is not difficult. Large mining companies have such large energy demands. They mainly acquire this energy through large Power Purchase Agreements (PPA). However, the backup plants of their critical processes can easily and quickly be changed to renewable energy sources. This is our expertise, and we can assist clients with this change. We see a great opportunity for this. We are in discussions for a project to implement a 4 or 5 MW capacity system. The project involves BESS (Battery Energy Storage Systems) technology, which helps to manage variability and ensure a steady supply of electricity. What factors are impeding the growth of the Chilean mining sector?

On average, in Chile it takes 10 years to approve a project, which discourages investors from coming to the country. In Peru, on the other hand, you can get a project running in 2.5 years, but social issues can affect the development of new projects.

Chile lacks big projects to propel itself forward. Looking at big mining projects, Quebrada Blanca underwent expansion, which has ended, Pelambres made a small expansion and Codelco has abstained from making investments. This led to a stall in the market. The problem is not that companies do not want to invest. The interest is there. The state is not approving the projects. If the world wants batteries, we need copper and lithium, but, most importantly, we need speed. What is Aggreko’s competitive advantage and how will this be used to reach the company’s goals?

We are flexible and agile, and we offer energy solutions that are efficient, reliable and sustainable. We have the economic power to support what we do. We are quick and do not leave our clients without energy. We are the biggest company in the world with this type of solution. We have 10 gigawatts of installed capacity.

Our goal is economic growth, which will be based on medium and long-term contracts. Long-term contracts will also allow clients to reach their sustainability goals more easily. In 2025, we hope 20% of our revenue will come from alternative solutions. Our goal is also to reach 25% female inclusion by 2025.