Last month Zenith Energy made two key announcements that have put a spotlight on our growth ambitions while also highlighting our ability to make strategic decisions to position our company at the forefront of Australia’s energy transition.

We proudly confirmed the acquisition of Peel Renewable Energy as our first non-resources asset and announced Zenith as the recipient of a Letter of Award from Liontown Resources to Build, Own and Operate what is expected to become the largest remote off-grid renewable energy hybrid power station in the country.

Both announcements represent forward steps on our journey to Net Zero, highlighting our commitment to increasing the proportion of renewable generation in our portfolio and further assist our clients in their journey to decarbonise.

The Liontown Award will enable us to demonstrate our innovation, flexibility, and expertise in delivering low-carbon hybrid power solutions, while also once again raising the industry benchmark in renewable energy integration.

Furthermore, with the thermal components of the power station designed to operate in ‘engine off’ mode at various times, it’s another opportunity for Zenith to showcase the ability of renewables to deliver reliable, continuous supply, to power an entire mining operation.

This aligns with the acquisition of Peel Renewable Energy, which will also see Zenith take on responsibility for the Peel Renewable Microgrid, a vertically integrated generation, distribution, and retail business, supplying power to the Peel Business Park, south of Perth.

It will allow Zenith to leverage our knowledge of islanded generation infrastructure, capitalising on our expertise and skillset, while also providing future opportunities for growth and expansion.

Both projects will also allow Zenith to demonstrate that our innovative power solutions work in real world environments, providing confidence to the sector overall.

It’s a key step in making renewable technologies more available, as it’s only once the technology is proven to be able to be successfully integrated and effective – and able to support industrial loads while also maintaining security of supply – that we can increase demand and allow our technology partners to develop economies of scale.

It’s an exciting time for Zenith and it’s clear we’re embarking on our next chapter of growth as a business, allowing us to continue to play a lead role in the energy transition, while also providing like-minded partners with a glide path to Net Zero.

Read International Mining’s Liontown article here

Read The West Australian Liontown article here

Read Perth Now’s Peel article here

Zenith Energy Pty Ltd (Zenith Energy) has received a Letter of Award from Liontown Resources to build, own, and operate what is expected to become the largest off-grid renewable energy hybrid power station in Australia at Liontown’s Kathleen Valley Project.

The award was announced to the ASX on Monday September 12, and will see Zenith Energy construct a 95MW hybrid power station at Kathleen Valley in WA’s Goldfields-Esperance region, which includes 30MW of wind capacity, 16MWp fixed axis solar PV array, and 17MW/19MWh battery energy storage system (BESS).

The partnership will allow Zenith Energy to demonstrate its innovation, flexibility, and expertise to deliver low-carbon emitting hybrid power solutions.

We are proud to continue to play a lead role in the energy transition, and to provide like-minded partners with a glide path to Net Zero.

The project also further demonstrates our continued commitment to increasing the proportion of renewable generation in our portfolio.

The thermal components of the power station are designed to operate in ‘engine off’ mode at various times, delivering 100% renewable energy generation to Kathleen Valley.

It’s an exciting opportunity for Zenith Energy to showcase our expertise, and the ability of renewables to deliver reliable, continuous supply, to power an entire mining operation.

We believed it will once again raise the industry benchmark in renewable energy integration and demonstrates our commitment to power decarbonisation.

Other unique aspects of the agreement include;

Largest Off-Grid Hybrid Power Station in Australia: The hybrid power station is currently expected to have the largest off-grid renewable capacity of any mining project in the country, with 46MW + 17MW BESS.

Renewable Incentives: A combination of incentives to produce renewable power over thermal power together with a renewable energy guarantee will allow Liontown to meet and exceed its renewable energy factor target of 60% at startup and beyond.

Liontown Managing Director and CEO Tony Ottaviano says Liontown is delighted to partner with such an experienced and highly competent power producer.

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

“The hybrid power station proposed will enable Liontown to exceed our target of achieving at least 60% renewable energy at Project start-up and beyond.”

Zenith Energy is engaged with Traditional Owners, recently announcing a collaboration with Tjiwarl Contracting Services to work together to deliver low carbon emission power solutions for miners and communities on Tjiwarl native title determined lands.

Zenith Energy and Liontown have agreed key commercial terms and are working to finalise arrangements under a binding long term Build, Own and Operate (BOO) Power Purchase Agreement.

Read Business News Liontown article here

As the mining and resources industry – and others – continue to deal with Australia’s tight labour market, supply chain congestion and global uncertainty, we at Zenith Energy believe our ability to tackle these issues head on is the result of having the right people within our team, and a strong workplace culture.

While supplying power to remote mine sites is a challenge in and of itself, the last two years has added pressure in other areas.

Recruitment has been our biggest issue of the past 24 months, and while I believe we’re through the worst of it now that Western Australia’s border has reopened, it’s still a very tight labour market.

Added to that is supply chain congestion and general global uncertainty, which is pushing up prices in many areas, and you can understand the difficulties we’re facing as a company.

However, we’re getting through it because at the heart of company is good, experienced people, and we strongly believe in the value of communication.

Zenith Energy has worked hard to build a strong workplace culture over the past 15 years, and it’s paying dividends.

Knowledge and accountability are among our core values, and we’re seeing this play out in what has been a challenging couple of years.

For example, where supply chain congestion has pushed back arrival times for vital infrastructure, we know we have the right people in place to demonstrate to clients that we are experienced at developing innovative solutions, and we can communicate those solutions effectively.

We invite our clients into our wheelhouse so they can see what we do, and how we do it. And that’s working well for us.

Our commitment to communication is also assisting in dealing with other key issues;

• Recruitment: With WA’s unemployment rate sitting at 3.4% in June, and the national rate at 3.5%, recruitment is likely to be tough for a while longer. However, Zenith is also looking at employee incentives beyond money, offering training, upskilling and growth opportunities. This in turn creates longevity and loyalty among staff, further boosting the company culture.

• Global Uncertainty: Aside from pushing up the cost of doing business, global uncertainty is also impacting commodity prices. The value of open, two-way communication between Zenith and our clients is essential to ensure we’re on the same page moving forward, and no one is surprised by sudden changes.

The rise in global fuel prices is also impacting the industry, and while Zenith is insulated somewhat by not supplying fuel in most instances, it’s resulting in some companies taking a fresh look at renewables.

While renewables can be seen as an expensive capital investment, the soaring cost of oil, diesel and gas means renewable power generation becomes a more attractive longer-term investment.

We’re also seeing technology advances making installation of renewables more cost-effective and time efficient compared to even a few years ago, which makes it more attractive again.

An emerging challenge we’re anticipating in coming years will be addressing the Environmental, Social and Governance (ESG) expectations of clients, especially in the context of meeting our own 2035 target for Net Zero.

But, the great thing about that challenge, is that once again we know we have the right people in place.

There are still many paths to travel, but we’re in a good spot as we have a lot of really smart people to take on that responsibility, and showcase their knowledge and experience. I’m confident we have some exciting times coming.