New Developments and Major Expansions
EEO Sectoral Workshops
Perth, 20 August 2013
EEO for New Developments
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Welcome
• Emergency Evacuations
• Facilities
• Introductions
• Agenda
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Agenda
Time
Topic
13:30
Welcome
13:35
EEO for New Developments
14:35
EEO New Developments Trials – Karara Mining Ltd
15:00
Afternoon Break
15:15
EEO New Developments Trials – Water Corporation (WA)
15:35
Project Phases and Group Exercise
16:10
Panel Discussion
16:55
Summary
17:00
Close
EEO for New Developments
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EEO for New Developments and Expansion Projects
How to make the regulations fit your business
Dayne Thompson
Project Manager – New Developments
Industrial Energy Efficiency Branch
Department of Resources, Energy & Tourism
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New Developments and Expansions
EEO - New Developments and Expansions aims to
encourage integration of energy efficiency into design
practises
by
aligning a flexible energy efficiency framework to
existing design stage processes.
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Discussion Points
An interactive session stepping through the new regulations
and providing examples. The broad topics we will cover are:
• Which projects will trigger and when?
• How do I plan an assessment?
• What are the reporting requirements and what does it
look like?
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Which projects will trigger ?


A Project that will use 0.5PJ of
energy once in operation
The corporation is developing
more than one project, at the
same time and ALL Projects will
use 0.25PJ or more of energy
once in operation
Projects that will use 0.1PJ of
energy once in operation, that
add up to 0.5PJ, and they are
identical.
0.35 PJ
0.65 PJ


0.28
PJ
0.15
PJ
0.32 PJ
0.21
PJ
0.4 PJ
0.11
PJ
0.11
PJ
0.12
PJ
0.12
PJ
0.28
PJ

0.11
PJ
0.18
PJ
0.09
PJ
0.12
PJ
0.12
PJ

0.11
PJ
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When do projects trigger ?
Projects will trigger the EEO Regulations once they are
publically announced.
So, what constitutes a public announcement?
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What constitutes a public announcement?
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What constitutes a public announcement?
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What constitutes a public announcement?
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What constitutes a public announcement?
What DOES NOT constitutes a public announcement?
•
Announcement of a lease agreement for exploration
•
Going out to tender for consultants to provide advise on early design
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Next Steps
Page 10 of the
guidance material
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Determining Participation
Questions?
EEO for New Developments
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What does an assessment look like?
EEO for New Developments
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What is involved in an assessment?
6 Requirements:
•
Leadership – setting goals, resourcing
•
People – ensuring a broad range of people are involved, appropriate
to each design stage.
•
Data – obtaining the right data at the right times, ensuring accuracy is
relevant to design stage and planning for future data needs
•
Evaluation – Evaluate ideas to the level appropriate to the design
stage, progress ideas for further evaluation to the next design
stage, ensure whole of site, whole of business
•
Decision making – ensuring the right information to the right people
•
Communication – communicate outcomes to the team, government
and the public
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Assessment Plan
5 Steps:
1. Identify a list of key projects that have been publically
announced
2. Think about potential energy indicators for each project
3. Identify existing corporate processes that will be applied or
will need to be adapted
4. Identify how, and when, reports on opportunities are likely
to be submitted and how energy use data is to be assessed
and collected
5. Consolidate into your Assessment Plan and submit to RET.
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Timing of Assessment Plans
When are assessment plans due.
Announced before 1 July 2013
Announced before 31 Dec 2013
Announced on 1 Feb 2014
Assessment Plan is due before 30 June 2014
Assessment Plan is due before 31 Aug 2014
Announced on 3 Mar 2016
Assessment Plan is due before 2 Sep 2016
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Energy KPIs
• Leading indicator examples
― Management support e.g. number of management communications
― Resource availability e.g. % of resources or FTE roles
― Embedding efficiency e.g. number of project team workshops on
efficiency
• Lagging indicator examples
― Specific energy consumption e.g. GJ/t, GJ/MWh etc
― Energy indicator based on specific energy index
― e.g. set at 10 GJ/t = 1.0 at the start of the project and track the index
― Energy saved through innovations e.g. target an x% saving in energy
overall vs BaU scenario
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Aligning Existing Processes
• Must be able to demonstrate a process that embeds the six
Requirements into each phase of the design stage
• If using contractors for phases, must ensure that their
processes meet the Requirements
• Some examples of existing processes that may go some way
to meeting the Requirements:
– Value Improving Practice (VIP) for energy
– Leading practice / technically feasible energy efficiency options
– Early integration of sustainability in design e.g. SEAL, HSEC
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Contract Types
Page 25 of
the
guidance
material
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Assessment Plans
Questions?
EEO for New Developments
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Reporting
When and how
EEO for New Developments
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Reporting
• Energy performance objectives, how these objectives were
achieved over the design and up to commercial operation
― Document KPIs and record performance
• A chart indicating the change in estimated annual energy
consumption over the lifecycle of the design
• Description of significant opportunities identified during the
assessment that contributed to energy savings throughout
the design and development
― Document ideas identified, evaluated and implemented
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When?
Reports are due 12 months after the financial year in
which the project reaches commercial operation.
Requirements include:
• One Public report; and
• One Government report
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What information needs to be provided?
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What information needs to be provided?
Leading / Lagging indicators.
Leading indicators may include:
• Numbers of meetings held on Energy Efficiency
• Time scheduled in the project plan for evaluation of ideas
• Number of different crushing techniques investigated
Lagging indicators may include:
• GJ/ Tonne of ore processed
• Op Ex to Cap Ex ratio
• NPV of the site
EEO for New Developments
EEO for New Developments
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Reporting
Questions?
EEO for New Developments
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Example Obligations
Example 1: You are an EEO company and you have a mining project
currently in construction,
What do you need to do?
•
You do not need to retrospectively conduct assessments.
•
You do need to undertake an assessment after construction
which may include optimisation during “debottlenecking”
When?
• Submit an assessment plan before 1 July 2014 (12 months after
the regulations came into effect)
• Report 12 months after the financial year in which the project
reaches commercial operation
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Example Obligations
Example 2: You have a project in concept which will may be publically
announced some time in the future,
What do you need to do?
•
You do need to align the EEO framework to your design process from concept
right through to commercial operation; BUT
•
You do not need to submit an assessment plan until the project is publically
announced.
•
The previous assessment plan can cover this project. If so, only the project details
need to be submitted.
When?
•
You must submit an assessment plan 6 months after public announcement
•
You must report 12 months after the financial year in which the project reaches
commercial operation
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Example Obligations
Example 3: EEO company GrindCorp has a mining project currently in
prefeasibility. The project will be publically announced on 20 Jan 2014
when it progresses to feasibility,
What do they need to do?
•
It’s their first project, so assess the project from feasibility
through to commercial operation.
When?
• Submit an assessment plan before 20 July 2014 (6 months after
public announcement)
• Report 12 months after the financial year in which the project
reaches commercial operation
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Example Obligations
Example 4: A New Company not currently registered with EEO “Stonecrush”
has a project currently in detailed design. The project has been be publically
announced.
What do they need to do?
•
It’s their first project, so assess the project from detailed design through to
commercial operation.
•
After an assessment plan is submitted, the department will comment. Stonecrush
will only have to act on design stages not yet commenced.
When?
•
Register by 31 March 2014 ( 9 months from 1 July 13)
•
Submit an assessment plan before 31 Dec 2014 (9 months after registration)
•
Report 12 months after the financial year in which the project reaches commercial
operation
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Example Obligations
Example 5: EEO company “ROCK DIG” has a design stage process
which already meets the intent of the assessment framework. This is
demonstrated in their EIS and complemented by internal design
procedures.
What do they need to do?
•
Contact the department and apply for an exemption.
When?
• The exemption must be received and approved before an
Assessment Plan if due
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Questions?
Dayne Thompson
Project Manager
New Developments and Expansion
EEO Development & Evaluation
EMAIL: dayne.thompson@ret.gov.au
PHONE: (02) 6243 7546
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TRIAL COMPANY PRESENTATION
KARARA MINING LTD
EEO for New Developments
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AFTERNOON BREAK
EEO for New Developments
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TRIAL COMPANY PRESENTATION
WATER CORPORATION (WA)
EEO for New Developments
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PROJECT PHASES
Emma Kreukniet
Assistant Manager - Capacity Building
New Developments
Industrial Energy Efficiency Branch
Department of Resources, Energy & Tourism
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Project Phases
Establish
Business
Need
Concept Study
Pre-Feasibility
Develop
Business
Case
Feasibility Study
Front End
Engineering
Design (FEED)
Establish
Commercial
Arrangements
Develop
Procurement
Strategy
Detailed Engineering
Develop Spec
and Tender
Tender Selection
and Award
Project
Implementation
Construction
Management
Commissioning and
Acceptance
Commercial
Operation
Financial Close
Page 25 of the
guidance
material
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Establish Business Need
Establish
Business
Need
Concept Study
Pre-Feasibility
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Develop Business Case
Develop
Business
Case
Feasibility Study
Front End
Engineering Design
(FEED)
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Establish Commercial Arrangements
Develop Procurement
Strategy
Establish
Develop Spec and
Commercial
Tender
Arrangements Tender Selection and
Award
Financial Close
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Project Implementation
Detailed
Engineering
Project
Construction
Implementation
Management
Commissioning and
Acceptance
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Commercial Operation
Commercial Operation
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Group Exercise
• How might the leadership team demonstrate support for energy
efficiency throughout this phase?
• Which people should you involve?
• What data might be available? Also consider non-energy data.
• How could this data be utilised to identify opportunities?
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Requirement 3
Information, Data and Analysis
Establish
Business
Need
Concept Study
Pre-Feasibility
• How might the leadership team demonstrate support for energy efficiency
throughout this phase?
• Which people should you involve?
• What data might be available? Also consider non-energy data.
• How could this data be utilised to identify opportunities?
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Requirement 3
Information, Data and Analysis
Develop
Business
Case
Feasibility Study
Front End
Engineering
Design (FEED)
• How might the leadership team demonstrate support for energy efficiency
throughout this phase?
• Which people should you involve?
• What data might be available? Also consider non-energy data.
• How could this data be utilised to identify opportunities?
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Requirement 3
Information, Data and Analysis
Establish
Commercial
Arrangements
Develop Procurement
Strategy
Develop Spec and
Tender
Tender Selection and
Award
Financial Close
• How might the leadership team demonstrate support for energy efficiency
throughout this phase?
• Which people should you involve?
• What data might be available? Also consider non-energy data.
• How could this data be utilised to identify opportunities?
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Requirement 3
Information, Data and Analysis
Detailed
Engineering
Project
Implementation
Construction
Management
Commissioning
and Acceptance
• How might the leadership team demonstrate support for energy efficiency
throughout this phase?
• Which people should you involve?
• What data might be available? Also consider non-energy data.
• How could this data be utilised to identify opportunities?
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PANEL SESSION
EEO for New Developments
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Panel Session
Speaker
Company
Karara Mining Ltd
Water Corporation (WA)
Dayne Thompson
DRET
Emma Kreukniet
DRET
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Determining Participation
Individual development or expansion
• Projects trigger the EEO
Regulations once they are
publically announced
• 1 Project
operation
0.35 PJ
0.65 PJ


0.5PJ in
0.28
PJ
0.21
PJ
0.4 PJ
0.11
PJ
0.11
PJ
0.12
PJ
0.12
PJ
0.28
PJ
0.15
PJ
0.32 PJ
• Projects
0.25PJ in
operation AND multiple
concurrent projects
• Identical Projects
0.1PJ in
operation, that add up to
0.5PJ



0.11
PJ
0.18
PJ
0.09
PJ
0.12
PJ
0.12
PJ

0.11
PJ
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Planning an Assessment
• 6 Requirements






Leadership
People
Data
Evaluation
Decision Making
Communication
• Identify projects and their timelines for reporting and
assessment
• Consider contract types
• ALIGN TO EXISTING PROCESSES
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Reporting Requirements
• One public and one government report
• Due 12 months after commercial operation
• Information on energy performance objectives throughout
the design
― Document KPIs and record performance
― Leading and lagging indicators
• Change in estimated annual energy consumption over the
lifecycle of the design
• Description of significant opportunities
― Document ideas identified, evaluated and implemented
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EXEMPTION FROM EEO FOR NEW
DEVELOPMENTS
Express your interest in this initiative by leaving your
business card / contact details on the front table
EEO for New Developments
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THANK YOU
EEO for New Developments
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