
Juan Andrés Méndez Quezada Energy Solutions Manager
GASCO
"The emergence of electrification, hydrogen and ammonia is gaining ground because otherwise the industry will not be able to continue operating."
What is Gasco's role in the mining industry, and what updates can you share from the past year?
Gasco is one of Chile's oldest companies, with 168 years of history supporting energy development. In mining, we have focused strongly on displacing more polluting fuels while emphasizing energy efficiency and enhancing mining productivity. For example, we are implementing projects like the one at Minera Escondida, where we are eliminating 100% of emissions in facilities using solar thermal energy to heat electrowinning pools.
We are also actively working to utilize existing mining infrastructure to extend its useful life by heating leaching piles. For minerals resistant to acid attack, it has been demonstrated that adding salt and temperature, in addition to acid, can achieve liberation, avoiding or delaying the investment in a concentrator plant that requires more water use, creates environmental liabilities like tailings, and necessitates significant investments. How do you manage renewable energy variability to ensure a constant supply for mining operations?
We are implementing projects through our subsidiaries that combine photovoltaic systems with batteries. We traditionally have generators based on liquefied gas (LPG) to deliver a supply with renewable energy while providing continuity through motor generators.
For thermal energy requirements, we supply steam using LPG, which is much cleaner than diesel. The advantage is that this plant works to power both motor generators and boilers. Additionally, we capture excess photovoltaic energy that would otherwise be wasted through electric boilers to generate steam, integrating and being more efficient with renewable energy use. Are Chile's ambitious carbon neutrality goals realistic for the mining industry?
Even Europe is already somewhat flexing its compliance goals, so it is interesting that Chile has set itself such ambitious goals. However, the copper industry is somewhat atypical because of rising of demand and the sales values force companies to be more efficient and adopt technologies that reduce emissions and be more productive with the current infrastructure. The emergence of electrification, hydrogen, and ammonia is gaining ground because otherwise the industry will not be able to continue operating. What infrastructure challenges exist for renewable energy in mining, especially at high altitudes?
Altitude presents two major challenges: reduced oxygen content and extremely low temperatures. We can implement off-grid generation with photovoltaic systems complemented by batteries, but battery costs are not currently viable for competitive rates. This requires a complementary solution where generation with LPG engines is essential.
LPG remains gaseous even at -45°C and can work perfectly in poor temperature conditions. Since tanks are pressurized, there is no effect from reduced pressure. For oxygen reduction, LPG equipment generates more heat and naturally comes with derating adjustments, so they are set to work with less oxygen. What is the adoption rate of LPG technology in Chile's mining industry?
In the last four or five years, there has been a breakthrough. Gasco started operating our Teno power plant with LPG motors to support renewable generation in the national electrical system. We have been displacing diesel generation and even coal generation. To our surprise, adoption has been very strong, with dispatch rates much higher than planned, requiring us to double maintenance efforts.
We have seen operations at 3,000 m or higher implementing pile heating based on LPG. Since they could not supply electrical energy, they also implemented LPG-based motor generators. We have proven the technology works for generating hot water, steam and electricity over 3,000 m in altitude. What are Gasco's plans for the mining sector and potential expansion?
Beyond strengthening our traditional business, we have two major challenges: making this traditional business increasingly green using more renewable energy and contributing to the country's development with different technologies. We are implementing the BHP project with solar thermal energy using no LPG molecules, and projects like our Gasco Luz line, which is 100% photovoltaic.
We are not only supplying gas but also steam and hot water, placing our equipment in operations that operate more efficiently. This allows us to reach operations, showing we can operate, maintain, and deliver electrical energy and steam. Mining projects in Peru, Mexico, and even the US are calling us about copper and lithium projects, interested in the pile leaching technology and energy supply. Argentina presents a great opportunity with projects near the border, allowing integration and joint work.