The Fort Knox and Pogo gold mines, run by Kinross and Northern Star respectively, consume more electricity than any other businesses in Alaska. Fort Knox alone spends $40 million annually on power and is responsible for 16% of Fairbanks’ electricity use — almost all from fossil fuels. The mine also emits more greenhouse gases than any of Kinross’s other global sites.

Kinross says the high emissions and costs put its Alaska operations at a disadvantage compared to its mines elsewhere, where power is cheaper and greener.

Renewable Investments Abroad, But Not Yet in Alaska

Both Kinross and Northern Star have made major renewable energy investments in other countries. Kinross built a $55 million solar farm in Mauritania. Northern Star is exploring wind power at Pogo. But in Alaska, neither has built large-scale renewable projects, citing logistical challenges such as vast distances and harsh weather.

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Kinross has made efficiency tweaks — shortening haul routes and optimizing ore grinding — but has not confirmed plans for on-site renewables. Northern Star mentioned a potential 16-megawatt project at Pogo, but details remain unclear.

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GVEA Caught in the Middle

Golden Valley Electric Association still generates over 80% of its electricity from coal, diesel, and naphtha. A prior plan to phase out coal was reversed due to a natural gas shortage. While GVEA secured nearly $500 million in federal funds to boost renewables and add grid storage, that funding is now in limbo due to the Trump administration’s freeze on green energy programs.

GVEA was recently asked to align projects with the administration’s “unleashing American energy” order, forcing it to remove climate-focused language in its funding proposals.

High Stakes for the Region

The threat of losing Kinross and Northern Star as customers looms large. Their mines account for roughly 30% of GVEA’s power sales. If they switch to independent solar or wind farms, it could drive up electricity rates for everyone else in Fairbanks.

“The mines may go out and get alternative sources of lower-carbon power — and all GVEA ratepayers would be paying more,” said energy historian Phil Wight.

Between Fossil Costs and Climate Goals

While GVEA leaders worry about the cost of renewables and battery storage, climate advocates argue fossil fuels are already costing the region through infrastructure needs, emissions, and missed economic opportunities. The utility has already spent $14 million on new oil storage tanks to maintain fossil fuel supply.

“The support of renewables by the mines shows how cost-effective they are,” said Eleanor Gagnon of the Fairbanks Climate Action Coalition. “Their bottom line is going to be cost.”

Kinross and Northern Star haven’t said how long they’ll wait. But if GVEA doesn’t act soon, Alaska’s largest gold mines may take the green energy leap alone — reshaping Interior Alaska’s energy future in the process.

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