Off the grid: The reliable transition to renewable energy James - PowerPoint PPT Presentation

Off the grid: The reliable transition to renewable energy James Harman, CEO Australian Energy Week | 13 June 2019

Global operations EDL is a leading global producer 1 Canada of sustainable distributed energy 11 59 10 UK 27 63 991MW | 98 power stations | 5 countries USA Australia MW 192 1 713 MW 12 Greece MW Div Diversifie ified asset p por ortfolio folio MW MW 355MW 299MW landfill gas remote energy 49MW 288MW renewables waste coal mine gas 21.8 TJ/day gas delivery (LNG/CNG/LFG) Number of power stations 2 A wo rld o f ne w e ne rg y

Australian operations Weipa Pine Creek EDL owns and operates 59 Ardyaloon power stations in clean and Warmun Djarindjin McArthur River Derby Halls Creek Beagle Bay remote energy across Fitzroy Crossing KEY Broome Looma Bidyadanga Australia. Waste coal mine Karratha Moranbah North gas Grosvenor Our global headquarters is Cannington Remote energy German Oaky Creek Creek in Brisbane, Queensland. LNG / CNG Yulara Landfill gas Brisbane Gascoyne Junction Brown Plains Renewables Div Diversifie ified asset p por ortfolio folio Coober Darlot Leonora Office Hill 50 Pedy Laverton Hill 60 59 Sunrise Dam 713MW Menzies Tamala Park Glennies Creek Red Hill assets Kalamunda Teralba Perth Eastern Creek Belrose, Grange Av Wingfield Jacks Gully Lucas Heights 288MW Cullerin Range 77MW Appin, Tower Belconnen Tahmoor waste coal mine gas Mugga Lane landfill gas Berwick Broadmeadows Clayton Brooklyn Springvale Corio Wonthaggi 299MW 49MW remote energy renewables A world of new energy 3

EDL’s remote energy assets Pine Creek • Powering off-grid remote communities and industries for 30 years Ardyaloon Warmun Djarindjin McArthur River Derby Halls Creek Beagle Bay • Fuelled with natural gas and/or diesel Fitzroy Crossing Broome Looma Bidyadanga Karratha • Since 2017, grown to include three hybrid Cannington renewable assets: Yulara − Coober Pedy Renewable Hybrid Project Gascoyne Junction − Cannington Power Station Agnew Coober Darlot Hill 50 Pedy Leonora Laverton − Agnew Renewable Hybrid Project, Hill 60 Sunrise Dam Menzies under construction. KEY LNG/CNG Remote energy Hybrid renewables A world of new energy 4

Drivers of the transition to renewable energy Decr creas asing ng cos costs of renewable Soci Social al sus ustai ainabi nability y energy technologies im impera erativ ives es to reduce emissions Price vol volat atility y of of tradi aditiona onal fue uel sources Energy En y Execution of Pa Paris ris tri rilem emma Agreem reemen ent in 2016 Pot otent ntial al cos cost savi avings ngs for operation/project Reliability A world of new energy 5

Coober Pedy 1.7MVA VA Renewable fly lywh wheel/ l/ 1MW/ / DUPS DUP 500k 500kWh Hybrid Project battery ry 3.9MW di 3.9M diesel ge generat ation stor orage age 1.4 .4MW av avg, g, 3.4 3.4MW pe peak ak 3M 3MW dyn ynami mic 1MW MW A AC so sola lar resist sistor 4MW w wind ge d generat ation on 6

Coober Pedy Renewable Hybrid Project Project o t outc tcome mes Unp nplanned nned o out utages es Period iod Year ar 99.999% 99.995% Number Duration reliability in FY19 to date reliability in FY18 (31 mins/345 days unplanned outage) FY15 4 3.5 hours >2,100,000 litres 73% p.a. reduction in diesel consumption ave renewable energy contribution FY16 5 1.1 hours Pre re- 81 hours 8GWh hybrid idis isation ion FY17 4 4.2 hours longest uninterrupted period at p.a. of renewable 100% renewable supply (Dec 2018) electricity Ave. 4.3 2.9 hours Post- FY18 4 0.47 hours hybridisation 7 A wo rld o f ne w e ne rg y

Cannington Power Station Initially commissioned as a diesel power station for South32’s Cannington mine, the facility was upgraded to a primarily gas-fired power station in 1999. EDL recently commissioned a 3MW solar farm to integrate with existing power station. At a gl a glan ance 35MW 2018 gas capacity upgraded to hybrid renewable 5MW 3MW diesel capacity solar generation 8 A wo rld o f ne w e ne rg y

Agnew Renewable Hybrid Project Greenfields energy solution for • a remote mining operation 10 year PPA • Current supply: • − neighbouring mine’s transmission line – 12MW − diesel hire sets – 6MW. This project will provide the mine with gr great ater t than an 5 50% % renew enewable ener e energy over the long term, wit ithou out c com omprom omis isin ing pow ower q qualit lity or or relia liabilit ility. 9

Agnew Renewable Hybrid Project In an Australian first, the project will utilise wind generation as part of a large hybrid microgrid in the mining sector. Stage St age 1 1 23MW 4MW power station inc 16MW gas and 3MW PV solar diesel gen. and 4MW PV solar Stage St age 2 2 5 18MW 13MW wind turbines wind generation battery

The transition to renewables Hybrid technologies manage r relia liabilit ility ris isk and facilitate e hi higher her p penet enetration o n of r renew enewable ener e energy Hig h pe ne tra tio n o f re ne wa b le s >75% • Hyd ro g e n (pro d uc e d RE pe ne tra tio n fro m spill re ne wa b le s) use d a s fue l inc re a se s • Use o f e ne rg y sto ra g e • >50% re ne wa b le pro je c ts inc re a sing , with re d uc e d L o w pe ne tra tio n will b e d e ve lo pe d d e pe nd e nc e o n the rma l pro je c ts • Amo unt o f ARE NA fund ing fue ls ne e d e d fo r hyb rid c o mme rc ia lly via b le • Ze ro d ie se l ta rg e t re ne wa b le pro je c ts will ARE NA-suppo rte d d e c re a se • Pro je c t X 23 MW the rma l + re ne wa b le e ne rg y 4MW PV so la r (g re e nfie ld ) pro je c ts • Gra nny Smith 8MW PV so la r (b ro wnfie ld ) • Sa nd fire , Co o b e r Pe d y • We ipa • Ca nning to n Now Now 2018 18 2019 19–20 2020 20 Fu Futu ture

Oppo rtunitie s a he a d The path ahead  Moving forward, we see high penetration renewables playing an increasing role.  Remote hybrid renewables market around 1GW, $2 billion capital.  EDL can play a leading role addressing the energy transition in off-grid and edge of grid applications: − transition fossil fuel-powered remote communities and mines to high penetration renewable generation − partner with networks to develop and run microgrids.  Take-up influenced by scale of mechanisms that encourage fossil fuel displacement. A world of new energy 12 12

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