Australian battery minerals producer Liontown Resources Limited (ASX:LTR) has selected a contractor that will deliver a 95-MW off-grid hybrid power station for its Kathleen Valley Lithium Project in Western Australia.
The lithium miner said on Tuesday it had executed a letter of award (LOA) with Australian independent power producer Zenith Energy Pty Ltd, handing the firm the job to build the largely renewable power station and supply the electricity to the Kathleen Valley operations.
The hybrid set-up will be made up of a 30-MW wind farm equipped with five 6-MW turbines, a 16-MWp fixed-axis solar PV array coupled to a 17-MW/19-MWh battery energy storage system (BESS), 27 MW of gas generation and 5 MW of diesel standby generation.
The thermal power components have been designed to operate in “engine off” mode for significant periods times, which will enable Liontown to exploit renewable energy when wind and solar resources are high, the miner said. Furthermore, Zenith Energy will be incentivised to prioritise renewable power production over thermal.
Zenith Energy is given the responsibility to finance, design, build, own, operate and maintain the power station for an initial term of 15 years from the start of commercial operation. Liontown and Zenith expect to sign a binding power purchase agreement (PPA) within 90 days of the LOA date.
The power station is expected to commence operation during the first half of 2024, about the same time when the Kathleen Valley process plant is due to be commissioned.
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