Zenith Energy to supply power to Liontown Resources’ (ASX:LTR) Kathleen Valley project

• Liontown Resources (LTR) awards Zenith Energy a contract to construct a hybrid power station at its Kathleen Valley lithium project in Western Australia
• Under the terms of the contract, Zenith will own and operate and finance the 95 megawatt power station for an initial term of 15 years
• The station will generate electricity through a combination of wind turbines and solar energy, as well as gas and diesel as a back up
• The power station is set to have the largest off-grid renewable capacity of any mining project in Australia, and is expected to be up and running in H1 2024
• LTR shares are down 2.63 per cent, at $1.76 at 2:57 pm AEST

Liontown Resources (LTR) has awarded Zenith Energy a contract to supply its Kathleen Valley lithium project electricity using a hybrid power station, through a letter of award (LOA).

Under the terms of the contract, Zenith will finance, design, construct, own, operate and maintain a 95-megawatt hybrid power station, for an initial term of 15 years from operation.

The power station, which is expected to have the largest off-grid renewable capacity of any mining project in Australia, is expected to be up and running around the same time as the plant commissioning in the first half of 2024.

The power station will generate electricity through a combination of wind turbines and solar energy, gas and diesel.

There will be five wind turbines, each capable of generating six megawatts (MW).

There will also be a 16 megawatt peak (MWp) fixed axis solar photovoltaic array attached to a 17 MW/19 megawatt-hour Battery Energy Storage System, which the company said will provide additional clean energy, supported by synchronous condensers.

There will also be a thermal power component, comprised of 27MW of gas generation, and 5MW of diesel standby generation.

The company said it has a number of incentives to produce renewable over thermal power, which it believes will meet and exceed its renewable energy commitments.

Zenith Energy has now begun the necessary steps to begin the delivery of the power station in line with the Kathleen Valley project schedule.

The two parties are working towards finalising a binding power purchase agreement within 90 days.

“We are delighted to partner with Zenith Energy, an experienced and highly competent power producer, following completion of a thorough competitive tender and commercial negotiation process,” Liontown Managing Director and CEO Tony Ottaviano said.

“We believe Zenith Energy is an ideal partner to deliver an industry leading hybrid power station to meet Liontown’s energy needs and requirements for a high-capacity renewable solution.

“When fully constructed, this hybrid power station will enable Liontown to exceed our target of achieving at least 60 per cent renewable energy at project start-up and beyond.”

LTR shares were down 2.63 per cent, at $1.76 at 2:57 pm AEST.