Project/company overview
IGO Limited is an ASX 100 listed company focused on creating a better planet for future generations by discovering, developing, and delivering products critical to clean energy.
Problem
An initial study found that electrifying the mine fleet would be 6% more expensive over 10 years than using a traditional diesel fleet.
While electrification would reduce ventilation, fuel, and electricity costs, these savings are not enough to offset the higher upfront costs of electric vehicles and supporting mine infrastructure.
Outcome
We conducted a study to quantify the environmental, social, and governance (ESG) benefits of electrification and assess their impact on the economics of the project.
Fleet electrification not only reduces carbon emissions and pollution, but also reduces hidden costs associated with social and governance risks. Accounting for key ESG factors like air emissions, worker health & wellbeing (associated with reduced heat and vibration) and improved safety reduced the cost disadvantage of electric vehicles > 70%.
Anticipating higher future energy costs and rising importance of sustainability, electric vehicles become superior to diesel, resulting in millions of dollars of financial and ESG benefit.
Value
The analysis demonstrates that a holistic approach, considering both financial and ESG factors, can lead to better decisions. By electrifying the fleet, the operator can save millions of dollars while also reducing their environmental & social impact.
This study provides valuable insights into the ESG factors most relevant to fleet electrification decisions. By continually improving the tracking of these metrics, the operator can ensure they are making progress towards their sustainability goals.
