Spotlight Feature Articles HIGH PROFILE - CUMMINS | Page 3

HIGH PROFILE power efficiency and shorter operational life from the generator, or having to stop it altogether. The HSK78G has been designed to operate at the highest ambient temperatures in the most remote locations, all far from the closest grid, offering full power capability without derating at 50°C (122°F) and 500 m (1,640 ft). Gas vs renewables The focus of many customers is to achieve the optimum levelised cost of electricity (LCOE) given the availability of different technologies which are suitable for their application. This can range from 100% gas generation through to a balanced mix of renewable sources such as wind or solar, and complementary storage technologies that leverage the reliability of gas generation to ride through periods where renewables are limited by their cyclical nature. The technology mix utilised will drive the different capex and opex cost scenarios that will ultimately affect the LCOE. Hydrogen-fueled haulage? Speaking of investments in a variety of technologies, Cummins recently entered into a definitive agreement to acquire fuel cell systems provider Hydrogenics Corp in a deal that comes with an enterprise value of around $290 million. Hydrogenics, over the past 24 years, has worked hard on becoming a leading provider of fuel cell and hydrogen solutions in the power industry, establishing technologies such as the Proton Exchange Membrane – or PEM – and Alkaline Electrolyzer Hydrogen generators for hydrogen generation for industrial processes, fueling stations and energy storage and transportation. It has also developed hydrogen fuel cell power generators for transportation such as trucks, urban transit buses, commercial fleets and utility vehicles. Tom Linebarger, Chairman and CEO, Cummins, said, upon closing of the deal – expected in the September quarter – the company would share more details about the acquisition and Cummins’ strategy to offer a broad portfolio of power solutions to meet its customers’ needs. Hydrogenics fuel cell production  Improvements in gas engine technology, such as in the HSK78G engine from Cummins, have pushed maintenance and overhaul limits well beyond the traditional envelope, thereby lowering opex costs over time. Jointly, we will continue to see cost reductions in storage and battery technology as volumes increase. For the near future, however, miners will continue to look for mixed technology to balance their capex and opex trying to achieve the lowest LCOE for its sites. of fossil fuels underground could have significant cost benefits for underground mines. In addition, The International Council on Mining and Metals have set their vision to provide solutions for minimising the impact of underground diesel exhaust by 2025. As more underground mining vehicles and equipment contemplate the potential benefits of electrification, Cummins will continuously invest in power systems that will be ready to support such power need and respond to any changes in the mining industry. Preparation for electrification As much as 40% of an underground mine’s energy outlay is spent on powering ventilation systems to remove pollutants from tunnels. Reducing the use The right technology choice In the future, most power systems will require a mix of technologies that are specifically suited to their environment, emissions zone and location. Natural gas power offers mining operators an efficient and proven and prime power solution. From Cummins perspective, a lot of investments are made in new gas engineering technology, which are demonstrated with the HSK78G gas series. Additional product investments are being made within the 500-1 MW space, which will be released later this year, offering a comprehensive gas product portfolio to meet all market requirements. Progressively stringent global emissions standards are also driving Cummins investment into a variety of technologies – natural gas, diesel, batteries and fuel cells, to ensure that customers have the right power for the right application. AUGUST 2019 | International Mining