Industry News / Page 4

ZEN ENERGY RAMPS UP ITS GREEN IRON INITIAVE

21 July 2023

ZEN Energy has announced its intent to make Green Iron and Green Iron co-product manufacturing real in Australia. ZEN’s Green Iron Initiative will enable a successful, commercial scale green iron plant in Australia, with an initial focus on South Australia, on an early timetable.

“ZEN’s team is identifying the best green iron process solutions for Australia. We are seeking, through targeted partnerships, to help supply the renewable electricity, green hydrogen, materials, process and site requirements for the earliest successful green iron plant development”, said ZEN CEO, Anthony Garnaut. “Preferred sites in South Australia and in Western Australia have been identified, with access to renewable power at globally competitive rates, as well as transport, utilities and feed materials”.

Last year, the global steel industry produced close to 2 billion tonnes of steel, releasing over 3.5 billion tonnes of carbon dioxide emissions, about 9 percent of global emissions. Most of these emissions are released during the ironmaking stage.

Australia contributes approximately 28% of the iron ore and 6% of the metallurgical coal used in world steel production. Most major steel producers have committed to net zero carbon emissions by 2050 or sooner. “Within this changing landscape, Australia is well placed to be a leading producer of green iron at the scale needed to support a globally competitive, low emission business ecosystem”, added Garnaut.

The critical, immediate requirement to enable the production of green iron and co-products is the reliable supply of substantial amounts of renewable electricity, which is used to create green hydrogen as the primary reduction agent in place of fossil fuel sourced agents, as well as for direct use in the process. ZEN has the expertise to develop staged solutions for firmed renewable energy supply that meets the requirements and timelines for this project.

“We have established networks with operating renewable assets, as well as critical stakeholders across the globe needed for renewable asset development. ZEN has already executed innovative agreements, enabling us to optimise renewable assets performance within Australia”.

ZEN is actively exploring many potential approaches as part of the Green Iron Initiative. These include process options at different levels of technology readiness, that vary in the absolute through-process carbon mitigation potential. These options differ also in the inputs and feed material types and grades, as well as the process efficiency, output rate and form of products made.

While the Green Iron Initiative is technology agnostic – it is not yet clear what are the most efficient pathways to produce green iron at scale – ZEN is currently evaluating a novel green iron process route, incorporating renewable electricity and green hydrogen in an electric smelting furnace step, using a variety of potential Australian sourced ferrous feeds. Theoretical process design calculations have been performed and are being validated through pilot scale test work and an intellectual property application has been lodged. This work is being undertaken by ZEN and builds on a collaboration between Mr. Wang Jun (with more than 40 years steelmaking experience) and Mr. John Tsalapatis (General Manager of ZEN’s Green Iron Initiative, who has over 35 years of ironmaking experience), and metallurgical research conducted by a pre-eminent research institution.

MEDIA RELEASE

Industry News / Page 4

ZEN Volunteering Day at the Tauondi Aboriginal College

KEY FACTS

Celebrating

50 years of the Tauondi Aboriginal College by giving back to the Indigenous community

Connecting

Volunteering days foster empathy, cultural appreciation and wellbeing

Thinking innovatively

prompts us to question our assumptions, broadens our worldview, and encourages us to consider diverse perspectives

A DAY OF GIVING BACK TO THE COMMUNITY

Every act of volunteering, no matter how small, contributes to creating a more compassionate, resilient, and harmonious society.

Every year, ZEN runs a volunteering day and this year we wanted to celebrate 50 years of the Tauondi Aboriginal College, in Kaurna Country, by getting our hands dirty and learning more about Indigenous culture. Tauondi is one of the oldest Aboriginal community-controlled organisations in SA and provides a range of critical education and social services from its property in Port Adelaide.

A significant amount of work was required to tidy up the grounds and keep up with the property’s maintenance. The ZEN team, MAC Trade Services and the SA Government Department of Energy & Mining also contributed to restoring the fireplace area, as smoke ceremonies are a key part of Indigenous practices, often used for purification, cleansing, and connecting with the spiritual realm. It is important to note that such ceremony should always be approached with respect, cultural sensitivity and by the specific Indigenous group’s teachings and traditions.

So much was achieved in just one day, which shows how powerful it is to join hands and connect with nature and the community.

While ZEN is early on its Reconciliation journey, we look forward to using our 12-month Reflect period to build a foundation to leverage our sphere of influence to promote positive change. This starts with actively engaging with First Nations communities and leaders to guide us on that journey. Moreover, establishing sustainable and targeted relationships with First Nations partners based on trust and a commitment to shared value.

GM Treasury

Lara Reid

ZEN has recently announced its Reconciliation Action Plan (RAP) and as part of the RAP, we want to support the Indigenous population where we can. Having that connection here at Tauondi Aboriginal College has been a great way for ZEN to be able to connect.

Volunteering Day at The Forktree Project

DOWNLOAD OUR RECONCILIATION ACTION PLAN

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Green Iron: A Sustainable Steel-Making Process

Green Iron is a description for sustainable processes under development, many that use renewable electricity and green hydrogen (instead of coal or natural gas and other fossil fuels), to convert iron ore into iron products that can then be used to create high-grade steel. These processes have the potential to reduce steelmaking carbon emissions by over 90% compared to fossil-fuel-based steelmaking processes. Traditional steel-making processes are highly carbon-intensive and contribute significantly to global carbon emissions. Steel production globally is currently responsible for approximately 8% of yearly human-derived carbon emissions. It is a key component in many industries and activities around the world, while the demand for steel will continue to grow. The Green Iron technologies offer innovative solutions to reduce the carbon footprint of steel production and promote sustainable development. For Australia, a country rich in iron ore deposits and the major exporter of iron ore globally, this equates to a significant opportunity to transform the Australian economy and become a superpower in the zero-carbon economy.

Liquid steel is poured from a metallurgical ladle.

Green Iron Process

At present the main Green Iron-processes being pursued utilise renewable energy and hydrogen to convert iron ore into iron. The processes involve the reduction of iron ore to iron using hydrogen gas, followed by the conversion of iron into steel using an electric arc furnace. The hydrogen required for these processes is produced using renewable energy sources such as wind and solar power, creating what is known as “green hydrogen.” This makes the Green Iron process routes a sustainable, near zero carbon emission feed for steel-making processes around the world.

The traditional steel-making process involves the use of coal made into coke, also natural gas and other fossil fuels to heat and reduce iron ore to iron, producing large amounts of carbon emissions. The major Green Iron processes underway use renewable energy and hydrogen instead, resulting in significantly lower carbon emissions. These processes eliminate the need for coal in iron production, offering a sustainable steelmaking solution for the future.

Opportunities for South Australia

South Australia is in a unique position to benefit from these innovative technologies. The state has access to abundant renewable energy sources such as wind and solar power and the capacity to build even greater renewable energy capacity. Green Iron creates an opportunity for South Australia to diversify the state economy while reducing the carbon footprint of steel production.

South Australia has recognised the importance of green hydrogen and has developed a plan to establish the state as a leader in this field. The plan includes the construction of a massive hydrogen electrolyser, which will be one of the largest in the world. The South Australian government has stated that the project will:

enhance South Australia’s grid security, through new dispatchable generation
prove hydrogen production and generation technology at scale
help unlock a pipeline of renewable energy developments and associated manufactory opportunities
catalyse other hydrogen projects in development, including export-focused projects
support South Australia’s continued clean energy transition and decarbonisation.

Some uses could include fuel for transport, conversion to other green chemicals and exported to international markets and being utilised in manufacturing sustainable steel through green iron production.

The 250MW green hydrogen electrolyser which is set to be built in the Upper Spencer Gulf is expected to create over 2,000 jobs during construction and drive clean energy growth in the region.

Benefits of Green Iron

The Green Iron process offers several benefits, including:

Reduced Carbon Emissions: The use of renewable energy and green hydrogen to produce steel could decrease steelmaking process carbon emissions by over 90%, making these new process routes more sustainable and environmentally friendly alternatives to traditional steel-making processes.
Diversification of Economy: The Green Iron technologies offer an opportunity for South Australia to diversify its economy by creating new green product streams, industries and jobs. This would promote circular economy sustainable development for the state, Australia and the world.
Export Green Iron products: Making use of South Australia’s abundant renewable energy opportunities to produce green iron products will enable SA to export these products as feed inputs to other steel-producing nations that cannot create the green iron themselves and will significantly help reduce global emissions in-line with limiting global warming to 1.5°C.
Promotes a Clean Energy Future: By utilising renewable energy sources to produce heat and hydrogen, the Green Iron processes support the transition to a low-carbon economy and promote a cleaner and more sustainable future.

Renewable energy, green hydrogen production and the establishment of Green Iron production present an exciting opportunity for South Australia. By investing in clean energy solutions and sustainable green pathways to steel production, the State can drive economic growth by creating new industries while also reducing worldwide the carbon footprint of these industries. The government’s plan to build a hydrogen electrolyser and attract investment in these industries shows a commitment to a clean energy future and further positions South Australia and Australia as global leaders and superpowers in the zero-carbon economy.

Industry News / Page 4

ZEN continues its PPA expansion, this time into New South Wales.

18 May 2023

ZEN continues its PPA expansion, this time into New South Wales. ZEN Energy announced its first agreement with MYTILINEOS for offtake from its Wagga Wagga South solar farm. MYTILINEOS, a leading developer of utility-scale solar and energy storage projects, entered the Australian market in 2019 and has financed and built five solar farms across NSW and Queensland, with two more under construction.

“We are delighted to be working with MYTILINEOS on expanding our portfolio. ZEN is continuing to expand our PPA profile, now on a monthly basis,” said ZEN Energy’s Executive General Manager of Future Energy, Mark Sinclair. “We actively seek to work with innovative partners with a laser focus on delivering renewable projects as fast as we can.”

ZEN and MYTILINEOS have agreed to a long-term contract with ZEN taking 80% of the electricity and LGCs generated from the 18.7MW plant. The plant is now in commissioning phase and is expected to enter commercial operation in Q2 2023.

“Bringing on a series of mid-range assets enables us to support the regional aspirations of our customers. It means they can access offtakes where they are located, like regional distribution centres. We are continuing to focus on creating agreements with progressive companies like MYTILINEOS, taking on PPAs across regional Australia,” Mark added.

Image Credits: https://waggawaggasolar.com.au/

ABOUT MYTILINEOS

MYTILINEOS Energy & Metals, founded in Greece in 1990, is an industrial and energy multinational company, listed on the Athens Stock Exchange, with a consolidated turnover of €6.3 billion and EBITDA of €823 million and employs more than 5.442 direct and indirect employees in Greece and abroad. Through the Energy Sector, the company is strategically positioned at the forefront of the energy transition as an integrated “green” utility, while through the Metallurgy Sector the Company is establishing as a benchmark for competitive “green” metallurgy in the European landscape. Focused on sustainability, it has set a target to reduce CO2 emissions by at least 30% by 2030 and achieve by 2050 net zero carbon footprint in all its operations in accordance with ESG criteria for Environment, Society and Governance.

For more information, please visit: www.mytilineos.gr | Facebook | Twitter | YouTube | LinkedIn

Media Release

Industry News / Page 4

Knowledge Up, Carbon Down

Welcome to the Knowledge Up, Carbon Down series.
We want you to master the transformation to renewable energy in Australia, leading communities into the
zero-carbon world with ZEN. Click play and learn more about the Energy industry terms.

EPISODE 3 – Carbon Emissions

Transcript

Hi everyone. Welcome to Knowledge Up, Carbon Down. Today is our third episode, and we will be talking about Carbon Footprints.

A carbon footprint is the amount of Green House Gas (GHG) emissions produced by a business through direct and indirect activity. When a business considers its carbon footprint, it will group its emissions into three different categories or scopes, as per the Green House Gas (GHG) Protocol:

Scope 1 is the direct or controlled emissions through business activities. Examples of this could include a gas fire furnace or emissions associated with company vehicles.
Scope 2 is the indirect emissions through the purchase of electricity.
Scope 3 emissions are those tricky ones. It is emissions that are influenced, but not controlled by a business. Some of these examples could be the transportation of raw materials that goes into your product. It could be employee commutes and business travel.

A carbon footprint will measure a business’s current consumption, and then you will be able to implement a plan to reduce this over time. It will also highlight your largest emissions source, which means that you can target that one first to create the greatest impact.

At ZEN Energy, we are committed to reducing our scope 1 and 2 emissions down to zero by the end of 2023, so this year. We will also be going to reduce our scope 3 emissions in line with our commitment to being a 1.5-degree retailer as per the Science Based Targets initiative. To find out more about what ZEN Energy is doing, please see the link to our ESG Report at the bottom of this video. So just to recap, a carbon footprint is the green house gas emissions produced by a business through their indirect and direct activity and it can be defined as Scope 1, 2 or 3.

Thank you. I hope you enjoyed this video and give us a thumbs up if you do!

Industry News / Page 4

ZEN and the Victorian Chambers of Commerce and Industry working together for a net-zero future.

April 5, 2023.

ZEN Energy is proud to be a member of The Victorian Chambers of Commerce and Industry, providing insights on the path of achieving net-zero for Victoria.

This is part of ZEN’s strategy to work with like-minded businesses to accelerate the transition to renewable energy for a positive outcome “…when there’s no longer any coal or gas being used to generate electricity…”, as ZEN CEO Anthony Garnaut mentioned in his interview below. By acting as a community and alongside the government, we will be able to not only achieve Australian mandatory targets, yet increase them such as ramping up the Renewable Energy Target (RET).

Image: Numurkah Solar Farm, in Victoria.

Article from: The Victorian Chambers of Commerce and Industry

ZEN Energy: Committed to renewable solutions

According to ZEN Energy CEO Anthony Garnaut, while Victoria is not the sunniest place in Australia, “it’s a lot sunnier than Germany”, meaning the cost of solar even in Melbourne is a lot cheaper than building a solar farm in the sunniest part of Germany.

“What that means is it’s a pretty good place to set up a business in Victoria if you use a lot of electricity,” he says.

“If you’re a global company, if you’re a data centre thinking, ‘where do I put my next data centre: do I put it in Germany, do I put it in Melbourne?’ If you come to Melbourne, solar is relatively cheap.

“We’ve also got a really good wind resource in Victoria – it’s one of the locations in the world where producing renewable energy is relatively cheap.

“So we think as the renewable transition gathers pace, there will be lots of opportunities for renewable-based manufacturing industries to set up in Victoria to enjoy the excellent wind and relatively excellent sun we have here.”

That’s why ZEN Energy is committed to sustainable energy technologies and fostering zero-carbon communities.

As a renewable retailer, ZEN specialises in providing renewable-based solutions to customers. Understanding that the transition to renewable energy is gradual and requires systemic change, ZEN’s business model involves offering the customer a long-term vision.

“We primarily source our power from solar and wind farms and so our cost base isn’t affected by the ups and downs in the global fossil fuel markets,” Anthony says.

“However, if new solar or wind farms are going to be built, they need to sell that electricity to someone. So ZEN Energy specialises in long-term sustainability partnerships.

“There are 50 electricity retail businesses in the market and most focus on selling one– to three-year contracts. We like to work with partners over the long term, over a five or a 10 or a 15-year time frame.

“What we like to do with customers is sit down, talk through the cost factors that are affecting their business and what they think about sustainability, and then we can design a contract that might involve some combination of direct electricity supply but then maybe also putting solar on roofs or putting in a battery at your business, which might lower the non-electricity costs on your bill.

“We’re set up in such a way that will thrive when there’s no longer any coal or gas being used to generate electricity.”

Anthony is hopeful about the prospects of Victoria’s local renewable market and the economic benefits it may bring.

“The proportion of our electricity that comes from renewable resources is a fair bit higher than most places in the world, even than places like France. Victoria is now getting up there with Germany.

“If we keep going, we’ll get to a zero-carbon electricity grid and before a lot of other places. That opens up a whole new world of industries that will be seeking to exploit the opportunities for low-cost power that comes with these free resources that we have out there in the sun, in the wind that are a lot cheaper to use than the gas and the coal that is now in high demand in the export market.”

However, a successful and sustainable transition will require buy-in and co-operation from individuals, business and government, Anthony says.

“We don’t have a net-zero economy until all of our electricity comes from renewable sources,” Anthony says.

“Households use a little under half of the electricity in Victoria, which means that businesses have more than half a contribution to make to the journey to net zero.

“Until businesses start committing and thinking forward about what that journey is going to look like, the transition to net-zero won’t happen in a stable and predictable way.

“If we can have a coordinated plan, the transition will happen faster, be less bumpy and the destination we get to will be a better destination.

“So I think it’s really important that businesses start thinking about what the next 15 years will look like and getting the conversations going with their families, local governments and through the Victorian Chamber to work out what role they can play as businesses in making this transition as successful as possible.”

Victorian Chamber advocacy

The Victorian Chamber Victorian Chamber of Commerce and Industry has launched a series of advocacy videos endorsing our campaign to support businesses’ transition to a net-zero economy. Achieving a Net-Zero Economy: Roadmap for Victorian Businesses focuses on three core objectives: reducing energy prices, ensuring the reliable supply of energy, and supporting businesses transition to a net-zero economy.

ENDS

Knowledge Up, Carbon Down

Welcome to the Knowledge Up, Carbon Down series.
We want you to master the transformation to renewable energy in Australia, leading communities into the
zero-carbon world with ZEN. Click play and learn more about the Energy industry terms.

EPISODE 2 – What is a PPA?

Transcript

Hi all! Welcome to our second instalment of Knowledge Up, Carbon Down.

Today we will be talking about a PPA with a grid-scale asset.
A PPA stands for Power Purchase Agreement, and it is a long-term agreement between a buyer and a seller of electricity at a fixed price.

The benefits of the PPA is that it reduces the time to market risk for an organisation and increases the sustainability metrics. The traditional approach of a PPA was for an organisation to contract a PPA directly with the renewable energy asset. This comes with a higher level of risk for the organisation. An example of this is my solar farm here and this is the generation curve. If an organisation is consuming outside of the times when the solar farm is generating, then they are exposed to the volatile Wholesale market.

A different approach is a lower-risk alternative, where a retailer, such as ZEN Energy, takes on that risk for the organisation. We take on the risk and package up the renewable energy contract into a low-risk simple, and finance-friendly offering, meaning that you are getting your renewable energy at times when you needed, at a price that is certain.

So just to recap, a PPA is a Power Purchase Agreement which is a long-term agreement between a buyer and a seller.

Thanks for joining us today, and please give us a thumbs up if you enjoyed the video.