Liontown Resources has awarded a liquified natural gas (LNG) supply contract to Mid-West LNG, a group company of Clean Energy Fuels Australia (CEFA).
LNG-fuelled thermal power is a key component of the 95 megawatt hybrid power station at the Kathleen Valley lithium project in Western Australia, expected to be among the largest off-grid wind-solar-battery storage renewable energy facilities in Australia.
The power station comprises wind turbines, solar panels, battery storage, diesel, and gas fired generators, which is designed to operate in ‘engine off’ mode enabling Liontown to operate from 100 percent renewable energy during periods of high wind and solar penetration.
The 15-year supply contract aligns to the Zenith power purchase agreement Liontown signed last year and enables flexibility for quantities and access to ‘sprint’ capacity as required throughout the contract period.
“Liontown has secured a quality, regional West Australian contractor in CEFA to supply LNG to Kathleen Valley, ensuring the overall project remains on track for first production mid-2024,” Liontown managing director and chief executive officer Tony Ottaviano said.
“We are focused on our renewable energy target of at least 60 per cent at start up delivered through wind, solar, battery storage and thermal components of LNG generation.
“Our LNG supply contract with CEFA enables reliability of supply and through an ‘engine off’ mode we will be able to operate from 100 percent renewable energy.
The LNG will be produced at the CEFA Mount Magnet Mid-West LNG hub located at Mount Magnet, around 370 kilometres from Kathleen Valley.
The hub is directly connected to the Mid-West gas pipeline, which connects to the Dampier to Bunbury gas pipeline.
Ottaviano said Kathleen Valley’s hybrid power station will be commissioned in early 2024, aligning with first production mid-2024.
“We remain focused on our commitment to deliver on our ESG credentials and establish industry-leading carbon emissions from the outset,” he said.
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