Juneau is doubling down on renewable energy. Two major projects—one private, one public—aim to cut carbon emissions and modernize infrastructure. But as plans take shape, mining companies find themselves at a crossroads. Will cleaner power help sustain their operations, or will new energy demands push them further into costly fossil fuels?
A Hydropower Plan with Major Upsides for Mining
A local entrepreneur has pitched a hydroelectric plant that could shift one of Juneau’s biggest mines away from diesel. The Kensington gold mine, roughly 45 miles north of the city, stands to benefit the most from this project.
Hydropower could be a game changer for Kensington. Running a large-scale mining operation on diesel is not only expensive but also environmentally taxing. If the proposed hydro plant comes through, Kensington could see a major cut in fuel costs and emissions.
But the plan isn’t just about mining. The broader goal is to increase Juneau’s access to renewable energy, reducing dependence on imported fuels. However, as promising as this sounds, not everyone is on board.
Cruise Ship Electrification: A Blow to Greens Creek?
On the other side of the debate is a city-backed initiative to electrify cruise ship docks. While it aligns with Juneau’s green energy goals, it could have unintended consequences for another major mine in the area—Greens Creek.
The Hecla-owned Greens Creek mine is one of the world’s largest silver producers, but it recently lost its hydroelectric power source. As a result, it faces a $5 million bill to keep operations running on diesel. If the cruise ship project moves forward, it could further limit the region’s power supply, making it even harder for Greens Creek to regain access to cheaper hydro power.
For the mine, that’s a double hit: higher fuel costs and a bigger carbon footprint. The irony? A renewable energy project meant to curb emissions could force one of the area’s biggest energy consumers to burn more fossil fuels.
The Bigger Energy Picture in Alaska
Alaska’s mining industry has long struggled with high energy costs. Unlike other major mining regions, it lacks large-scale, affordable power grids. Most hardrock mines rely heavily on diesel and coal, which are both costly and polluting.
Renewable energy advocates argue that new projects can help change that. Yet, even with tax credits from the Biden administration, financing and politics remain major hurdles. The Trump administration’s rollback of clean energy incentives only adds to the uncertainty.
The challenge isn’t just about money. It’s about aligning interests. Mining companies, utilities, environmental groups, and regulators all have different priorities. That’s why, despite widespread support for renewables, making real progress has been slow.
A Heated Battle Before State Regulators
Now, the debate has reached Alaska’s state utility regulators. The proposed hydroelectric project, the cruise ship electrification plan, and the mining industry’s energy struggles are all under scrutiny.
- Kensington mine sees hydro power as a cost-saving opportunity.
- Greens Creek mine fears it will be left with expensive diesel.
- Renewable energy advocates say Alaska can’t afford to miss out on clean power.
- Regulators must balance economic and environmental concerns.
Steve Behnke, a board member at Renewable Juneau, summed up the tension: “The interests do align. But the nitty-gritty economic, financial issues don’t.”
And that’s the crux of the issue. While Juneau wants a greener future, the path forward isn’t simple. With millions of dollars, major industries, and the environment at stake, the coming months could determine whether Alaska’s renewable energy ambitions lift its mining industry—or leave it in the dust.
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