After a couple year’s delay due to a pandemic, the XXII Emperor’s Challenge is finally being held, appropriately in MMXXII. Or, as the kids might say, XXII in XXII.
But, like most years, this year could once again be the last year for the race, at least in its current form/current route.
You see, there’s a rumour going round (and yes, I know, it’s Tumbler Ridge; if there isn’t a rumour by noon, someone will start one) that Teck and Conuma are in talks for the latter company to take over Quintette.
Teck, you see, is in the process of decarbonization.
That means by the year 2050, the company is planning to be net zero for carbon emissions.
Their first goal is to only use renewable power by 2030.
Right now, 95 percent of their electricity comes from zero emission sources.
For instance, at Teck’s Chilean operations, the majority of electricity has historically been procured from conventional sources like coal and natural gas.
But in 2020, Teck decided to move to clean energy at its Quebrada Blanca II (QB2) and Carmen de Andacollo (CdA) mines. And not just because it’s the green thing to do. No, the company has discovered that using green energy sources it creates the potential for long-term savings on energy costs.
“Setting bold new climate and energy targets not only helps us further reduce emissions, it can also help us find economical long-term energy supply options at our operations,” says Marcos Cid, Energy Manager for Teck in Chile.
So two years ago, Teck restructured part of its power agreement with local energy company AES Gener to increase the QB2 project’s use of renewable energy to 118 Megawatts (MW) starting this year.
“Once effective, more than 50 percent of QB2’s total operating power needs will be from renewable sources, including wind, solar, and hydroelectric energy,” says Teck. “This agreement secures reliable, long-term power for our major copper growth project at no additional cost, while helping to reduce our environmental footprint.”
Meanwhile, the same year, Teck also entered into a long-term power purchase agreement to provide 100 percent renewable power at CdA. Under the agreement, CdA is sourcing 72 Megawatts (MW) from AES Gener’s growing renewable portfolio of wind, solar and hydroelectric energy.
“We are honored to continue working together with Teck to help them progress towards their goal of carbon neutrality,” says Andrés Gluski, AES Corporation President and Chief Executive Officer. “By providing Teck with innovative renewable energy solutions, AES Gener is helping build Chile’s sustainable and reliable grid of the future.”
In 2019, the Carmen de Andacollo operations was awarded with the Ministry of Energy’s Energy Efficiency Silver Seal.
“By transitioning to renewable energy, Teck’s Chilean operations can realize opportunities to reduce emissions, save on energy costs, and support the broader shift to renewable energy sources in Chile, as the country works towards its own decarbonization goals”, said Chris Adachi, Manager, Sustainability and Climate Change.
Okay, sure, but what about those big trucks? Those things burn a hella amount of diesel, right?
True. And fuel use in mobile equipment is the largest source of what are known as Scope 1 greenhouse gases.
What to do? According to Teck, the company is working towards electrification of its mobile fleet to reduce emissions from diesel use, including in our large haul trucks and other mobile equipment.
For instance, the company is working with Caterpillar to work towards deployment of one of Canada’s first zero-emission haul truck fleets at its Kootenay operations.
Ever since Quintette closed down, many locals have viewed the mine through an almost Arthurian mythological lens: Quintette is the once and future mine, which shall return some day from where it lies in rest on the island of Avalon, to save us all.
But, like Arthur’s fabled return to the British Isles, it seems that Teck’s return to Tumbler is something that people will have to keep waiting for. Because while the company will continue to produce steelmaking coal, the company knows that over the next few decades, things are changing.
In the latest investor’s call, Teck President Donald Lindsay addressed the idea that demand for steel is going up, and steel is an important product for a decarbonized future. But the company is focusing on growing its copper business. There are even rumours that the company may sell off its coal business.
Which doesn’t mean that coal, especially steelmaking coal, is going away as a business any time soon. With Russia blocking exports of natural gas to Europe, coal-fired power generation has spiked and thermal coal prices are hitting record highs. And, even though met coal prices are down, they’re still quite strong, compared to a decade ago. And there’s a chance that Conuma could be taking over Quintette one of these days, bringing that mine back on line.
But most people are predicting the end of coal for steelmaking by 2050, which is coming faster than you might think.
There’s an old saying about rats deserting a sinking ship. But what to say when the captain of the ship is talking about getting off the ship that seems to be sailing fine on the high seas? What sort of information is he privy to?
Basically, if we as a town invest our future in coal, when those with presumably the most foresight are getting out, what does that say about our future? Maybe, just maybe, we should look at ways to continue to diversify our economy. To put at least some of our effort into ways of making sure the town survives past 2050.
Final Shot.
Trent is the publisher of Tumbler RidgeLines.
