QUEBEC – Stornoway Diamond Corp. of Montreal has crunched the numbers and decided to build a liquefied natural gas (LNG) fuelled power plant for the Renard diamond mine in the Otish Mountains. A feasibility study for the power plant done by AMEC Americas compared using LNG to the proposed diesel gen-set option.
LNG came out the winner both for its lower operating cost and reduced emissions. Annual operating cost savings will be between $8 million and $10 million in each year of the 11-year mine life, or a savings of $89 million. The cost of building an LNG power plant is only $2.6 million more than a diesel plant, and the difference has a net payback of only four months. The LNG plant will have 43% fewer greenhouse gas emissions. Finally, the local supply of LNG is stable, having an existing commercial distribution network in the province.
The Renard power plant will comprise seven 2.1-MW LNG gen-sets, providing generation capacity for the project’s normal operating specification of 9.5 MW (five gen-sets operating at a planned 92% efficiency). Onsite gas storage will be sufficient for 10 days operation, with new supplies delivered daily by cryogenic tanker truck from the existing Gaz Metro liquefaction plant and distribution center in Montreal.
In addition to power generation, LNG will be used for heating of buildings and the underground mine, removing the requirement for onsite propane. A smaller quantity of diesel will continue to be used at site for construction activities and mobile mining equipment.
Get all the details about developing Quebec’s first diamond mine at StornowayDiamonds.com.