The Nova Operation is in a remote area and far from grid-supplied electricity. This necessitated the construction of our own power supply solution. During the planning process, we sought economically viable ways to include renewable energy sources as a demonstration of our commitment to a green and clean energy future. Following a review of our options and a competitive tender process in FY15, Zenith Pacific was awarded the contract to install and operate a 20MW diesel power station and a 5.7MW photovoltaic power generation system. The inclusion of the solar system, as a substitute for further diesel generators, will effectively reduce diesel consumption by approximately 3,000,000Lpa and reduce emissions by approximately 5,219 tonnes of CO 2 equivalent per annum. At the time of awarding the contract, the economics of a combined diesel and solar power supply option was clearly favourable, primarily because diesel was approximately $1.24 a litre. However, by the time we came to make a construction commencement decision in 2016, the diesel price had dropped to $0.88 a litre. However, since this time we have continued to evaluate the merits of the project. We have concluded that, over Nova’s remaining mine life, diesel prices will likely increase on average and the solar plant will serve as a hedge on such price changes. Furthermore, we have reaffirmed our commitment to demonstrate leadership through the construction of a fully integrated solar-diesel power solution – the first application of this particular technology in Australia. It is within this context that IGO is proud to have recently taken the decision to proceed with the project. We do so without any Government subsidy. We anticipate construction of the solar power generation system will be completed in FY20. CASE STUDY / ENERGY SOLAR FARM The generation of greenhouse gas (GHG) emissions and the impact on global climate change is considered a significant issue in Australia and the rest of the world. While relatively minor in comparison to other mining and industrial emitters, IGO understands that collectively the mining industry has a part to play. In FY18, IGO’s total Scope 1 and Scope 2 GHG emissions for all IGO facilities was 117,686t (CO 2 -e), produced mainly through the consumption of compressed natual gas (CNG) and diesel at our Jaguar and Nova Operations. Going forward, IGO's emissions will be offset with the installation of the solar plant at Nova. FIGURE 31 IGO SCOPE 1 AND 2 EMISSIONS EXPLORATION/CORPORATE NOVA JAGUAR LONG FY15 FY16 FY17 FY18 120,000 100,000 80,000 60,000 40,000 20,000 0 CO 2 -e (Tonnes) Affordable and clean energy GREENHOUSE GAS EMISSIONS IGO SUSTAINABILITY REPORT 2018— 81