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Environmental Research Digest – July 2012

Summary

This Pike Research report provides a detailed examination of energy consumption dynamics in the global mining industry, along with an analysis of the market opportunity for greater utilization of renewable energy. The study assesses the market drivers and policy issues that are influencing mining companies’ increasing interest in renewable energy, along with a review of the technology issues associated with each option.

Key Findings

• Worldwide investment by the mining industry in renewable energy and energy conservation will reach about $8.4 billion by 2016 and nearly $20 billion by 2020.
• And under a more aggressive scenario, in which the global economy expands more rapidly and policy mandates pertaining to climate change are more robust, spending could reach $15.6 billion by 2016 and $30 billion annually by 2020.
• Ever-increasing pressure from governments, customers, and other stakeholders will drive this shift toward solar, wind geothermal and other renewable.
• Several companies are already using carbon credits and carbon trading to augment revenue streams and address climate change regulations and taxes.
• The Asia Pacific region, which has seen its market share of the worldwide mining sector increase to 44 percent in the last decade, will see the greatest investment in renewable energy in the mining industry through 2020, at $9.4 billion.
• In general, Pike expects mining’s investments in renewable energy technologies will range from 10 percent to 20 percent of total energy expenditures during the forecast period.

Author(s)

Pike Research

Source

Further details

Tags: energy, greater utilization, mining, Pike Research, renewable