The Kathleen Valley Lithium Project will now have power supplied to it thanks to a Power Purchase Agreement (PPA) that Liontown Resources has executed with Zenith Energy Pty Ltd.
In a statement, Liontown said the PPA followed a competitive tender procedure and Letter of Award describing important commercial parameters, which was announced on 12 September 2022.
A 95MW hybrid power station at Kathleen Valley (Hybrid Power Station) will be owned, operated, and maintained by Zenith Energy for an initial period of 15 years, beginning with the Hybrid Power Station’s first commercial operation, which is anticipated to take place during the process plant’s commissioning in the first half of 2024.
Five 6MW wind turbines will be used in the hybrid power station to generate wind energy. Additional clean energy will be provided by a 16MWp fixed axis solar PV array connected to a 17MW / 19MWh Battery Energy Storage System (BESS), which will be backed by highly dependable synchronous condensers that are crucial for system stability and resilience. 27MW of gas generation and 5MW of diesel standby generation will make up the thermal power component.
Zenith Energy has advanced the necessary planning, legal, engineering, and design work, as well as placing orders for long lead products, all of which are required to ensure that the Hybrid Power Station is delivered on time in accordance with the Kathleen Valley Project schedule.
Liontown has received permission from Export Finance Australia (EFA) for a $25 million guarantee facility as part of the security package under the Power Purchase Agreement, which will support the timely building of the Hybrid Power Station at Kathleen Valley. Provision of the facility is subject to several restrictions, common for facilities of this sort, and the finalisation of facility agreements. The Commonwealth of Australia’s export credit agency is known as EFA. Austrade’s Critical Minerals Prospectus has designated Liontown’s Kathleen Valley Lithium Project as a critical minerals project.
“Finalising the Power Purchase Agreement marks another important milestone for Liontown and the development of Kathleen Valley, paving 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,” Liontown Managing Director and CEO Tony Ottaviano said.
Ottaviano stated that Zenith Energy’s promise to deliver a high-capacity hybrid power solution includes incentives to create renewable power over thermal power, which, when combined with a renewable energy guarantee, positions us to reach our renewable energy target of 60 per cent at launch.
“Securing the $25 million guarantee from Export Finance Australia assists to reinforce Liontown’s position as a new globally significant producer and exporter of lithium integral to the transition to a low-carbon future,” Ottaviano added.
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