Pacific Hydro and Codelco renew 100% renewable energy supply contract

Pacific Hydro PRESS RELEASE
May 17, 2024

Pacific Hydro and Codelco renew their energy supply contract, consisting of 100% renewable energy production, where Pacific Hydro will provide the Chilean copper company with an amount of 375 gigawatts per year, for 10 years, marking a significant milestone in the momentum towards a more sustainable future and setting a new standard in the industry.

Specifically, the contract considers energy for the El Teniente division, responsible for the operation of the El Teniente underground mine, which may require a supply between 60Hz and 50Hz.

Among its characteristics, it stands out for being a PPA (Power Purchase Agreement), which is a purchase and sale contract to acquire energy directly from an independent producer, for a certain period of time and at a price. agreed that it is profitable for both parties.

Likewise, the agreement integrates innovative technology. For example, the Coya and Pangal run-of-river hydro plants will be the key backup technology. These plants are capable of generating electricity at a frequency of 60Hz, which is not common in Chile, given that in the national electrical system the supply frequency is 50Hz. And this characteristic comes from the time when it was owned by mining companies. North Americans. This will provide the necessary stability to support the supply of renewable energy to Codelco.

“This supply contract, which represents 100% renewable energy production, will provide Codelco with an amount of 375 gigawatts per year for the next decade. This strategic collaboration reinforces the commitment of both organizations to the energy transition of our country and its accelerated pace towards cleaner and more sustainable energy sources,” said Luis Arqueros, executive manager of Commercial, Development, New Business & Corporate Affairs of Pacific Hydro Chile.

Codelco, a state company with a long history in the mining industry, recognizes the importance of reducing its environmental footprint and is committed to adopting more sustainable practices in all its operations. The El Teniente Division, responsible for the operation of the El Teniente underground mine, located eighty kilometers southeast of Santiago, has demonstrated its leadership by actively seeking electricity supply alternatives that minimize its environmental impact.

It should be noted that, given the nature of the plants, their generation is considered renewable. The supply will be accredited by Pacific Hydro annually through I-REC certificates, international standard documents, which validate that the energy used comes from 100% renewable sources, or failing that, by any other institution of recognized international prestige and accepted by Codelco.

"This agreement represents a significant step towards a more sustainable future and highlights both organizations' continued commitment to innovation and environmental responsibility. Pacific Hydro has more than 20 years of experience in renewable energy generation in Chile and we are committed to good community relations and the development of new sustainable businesses. That is why together with Codelco we look forward to continuing to collaborate to promote change towards a cleaner and more prosperous world,” concluded Luis Arqueros.

This is an automated translation of the original release published in Spanish.

PRESS RELEASE from Pacific Hydro
May 17, 2024

Pacific Hydro and Codelco are renewing their energy supply contract, consisting of 100% renewable energy production, where Pacific Hydro will provide the Chilean copper company with an amount of 375 gigawatts per year, for 10 years, marking a significant milestone in the momentum towards a more sustainable future and setting a new standard in the industry.

Specifically, the contract considers energy for the El Teniente division, responsible for the operation of the El Teniente underground mine, which may demand a supply between 60Hz and 50Hz.

Among its characteristics, it stands out for being a PPA (Power Purchase Agreement), which is a purchase and sale contract to acquire energy directly from an independent producer, for a certain period of time and at an agreed price that it is profitable for both parties.

Likewise, the agreement integrates innovative technology. For example, the Coya and Pangal run-of-river hydro plants will be the key backup technology. These plants are capable of generating electricity at a frequency of 60Hz, which is not common in Chile, given that in the national electrical system the supply frequency is 50Hz. And this characteristic comes from the time when it was owned by US mining companies. This will provide the necessary stability to support the supply of renewable energy to Codelco.

“This supply contract, which represents 100% renewable energy production, will provide Codelco with an amount of 375 gigawatts per year for the next decade. This strategic collaboration reinforces the commitment of both organizations to the energy transition of our country and its accelerated pace towards cleaner and more sustainable energy sources,” said Luis Arqueros, executive manager of Commercial, Development, New Business & Corporate Affairs of Pacific Hydro Chile.

Codelco, a state company with a long history in the mining industry, recognizes the importance of reducing its environmental footprint and is committed to adopting more sustainable practices in all its operations. The El Teniente Division, responsible for the operation of the El Teniente underground mine, located eighty kilometers southeast of Santiago, has demonstrated its leadership by actively seeking electricity supply alternatives that minimize its environmental impact.

It should be noted that, given the nature of the plants, their generation is considered renewable. The supply will be accredited by Pacific Hydro annually through I-REC certificates, international standard documents, which validate that the energy used comes from 100% renewable sources, or failing that, by any other institution of recognized international prestige and accepted by Codelco.

"This agreement represents a significant step towards a more sustainable future and highlights both organizations' continued commitment to innovation and environmental responsibility. Pacific Hydro has more than 20 years of experience in renewable energy generation in Chile and we are committed to good community relations and the development of new sustainable businesses. That is why together with Codelco we look forward to continuing to collaborate to promote change towards a cleaner and more prosperous world,” said Luis Arqueros.