Liontown Resources has contracted Australian independent power producer Zenith Energy for the supply of power to its Kathleen Valley lithium project in Western Australia.
The power purchase agreement follows a competitive tender process and Letter of Award detailing key commercial terms, which was announced in September.
Zenith Energy will finance, design, construct, own, operate and maintain a 95MW hybrid power station at Kathleen Valley for an initial term of 15 years from commercial operation of the station, which is expected to coincide with the commissioning of the process plant in the first half of 2024.
The station will include wind generation from five wind turbines each capable of generating 6MW. A 16MWp fixed axis solar PV array coupled to a 17MW/19MWh Battery Energy Storage System (BESS) will provide additional clean energy, supported by highly reliable synchronous condensers that provide critical system stability and resilience.
The thermal power component will comprise 27MW of gas generation and 5MW of diesel standby generation.
Liontown has secured approval for a $25 million guarantee facility from Export Finance Australia, which will underpin the timely construction of the station.
Kathleen Valley has been identified as a critical minerals project under Austrade’s critical minerals prospectus.
Liontown’s managing director Tony Ottaviano said the agreement paved the way for the construction of one of the largest off-grid wind-solar-battery storage facilities of its kind in the Australian resource sector.
“This reflects our unwavering commitment to delivering on our ESG credentials and establishing industry-leading carbon emissions from the outset,” he said.
