Inside The $475 Million U.S. Experiment With Green Mining In 2025

October 22, 2024

The U.S. Department of Energy has begun releasing some of $475 million granted in total to five states for various green energy prototypes to create new businesses on three former mining sites and decarbonize two working mines.

The projects in Arizona, Kentucky, Nevada, Pennsylvania and West Virginia are to demonstrate five ways of creating green power: energy storage systems for batteries, geothermal, microgrids and solar power. The DOE-approved projects are being managed by its Office of Clean Energy Demonstrations and Clean Energy Demonstration Program on Current and Former Mine Land.

The mining project to receive the highest award (up to $129 million) is for two inactive West Virginia coal mines in central Nicholas County, the state’s eighth largest county.

The OCED awarded $1.9 million in September to the Nicholas County Solar Project LLC to launch the first phase of an effort to use land and existing energy infrastructure from the former coal mines to create photovoltaic solar power. The total output of 250 megawatts of electricity would add lower-cost, green electricity for 39,000 area homes.

The initial phase, to last no more than a year, will focus on finalizing the business plan and formalizing details for permitting and grid interconnection. The project is being backed by a Kansas City, Mo.-headquartered subsidiary of Savion LLC, a Shell Group portfolio company.

Another environmental benefit of the project is it will use previously disturbed land for a new solar energy site that ultimately will help preserve natural lands and farming areas from being lost to developments. The venture is expected to create over 400 jobs and new workforce training opportunities. Nicholas County, with a population of 24,600, has a 45% employment rate, according to U.S. Census Bureau figures. Its median household income is $48,826.

The next largest grant ($90 million) was awarded to refurbish former mine land in Clearfield County, Penn. Last month, the project received $2 million to begin a three-month initial phase. The county, home to 77,000 people, has a median household income of $57,000.

The objective is to turn an old subsurface coal mine into a largest photovoltaic solar farm to generate 401 megawatts of energy for 70,000 homes. The development could serve as a model for Appalachian coal-to-solar projects. Behind this effort is Mineral Basin Solar Power LLC, which has township offices in Shawville and LeContes Mills, Penn. The company is a wholly owned unit of Boston-based Swift Current Energy LLC.

The other coal mine conversion project, located in Bell County, Ky., is being done by the Lewis Ridge Pumped Storage Project LLC. It received $12 million in September to start Phase One. The total DOE grant is up to $81 million. The company is an affiliate of Rye Development LLC, which is a partnership between investment firm Climate Adaptive Infrastructure and an EDF Group subsidiary.

This pumped storage hydroelectric facility would use a pair of manmade reservoirs at different elevations to retain no more than eight hour’s worth of electricity during low power usage times and alternate to generate 287 megawatts of electricity during peak demands, such as during extreme weather. Linking this green energy to the electrical grid will improve reliability in the small community where 23,300 residents live. The median household income there is $33,658. DOE noted that the project will create 1,500 construction and 30 operations jobs while also boosting local tax revenues that have slid since the 1970s.

The remaining two green mining projects are in Nevada and Arizona. The DOE status of both projects is listed as being in negotiations for grant awards.

A joint venture between Barrick Gold Corp. of Canada and Denver-based Newmont Corp., the Nevada Gold Mines LLC project would develop a photovoltaic solar site and system for storing battery energy to decarbonize energy operations at three active gold mines in Elko, Eureka and Humboldt counties. DOE had announced the project would receive a $95-million grant.

DOE selected Freeport Minerals Corp. in Arizona to award an $80-million grant to install a microgrid geothermal and battery energy storage system at two active copper mines in Graham and Greenlee counties. The project would also to demonstrate the direct-use of geothermal clean heat to extract 25 million pounds of copper. The project also seeks to provide scholarships for 300 Native American students from 14 tribes.

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