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Liontown Resources signs Power Purchase Agreement (PPA) with Zenith Energy for largest off-grid renewable hybrid energy power station in Australia
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Liontown Resources signs Power Purchase Agreement (PPA) with Zenith Energy for largest off-grid renewable hybrid energy power station in Australia

Home News and Blog Liontown Resources Ltd has signed a large-scale renewable Power Purchase Agreement (PPA) with Zenith Energy, which will see the construction of a 95MW hybrid power station at Kathleen Valley in WA’s Goldfields-Esperance region. The PPA for the on-site power station will supply a renewable energy component which includes 30MW of wind […]

December 21, 2022


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An animated impression of the Kathleen Valley project

Liontown Resources Ltd has signed a large-scale renewable Power Purchase Agreement (PPA) with Zenith Energy, which will see the construction of a 95MW hybrid power station at Kathleen Valley in WA’s Goldfields-Esperance region.

The PPA for the on-site power station will supply a renewable energy component which includes 30MW of wind capacity, a 16MWp fixed axis solar PV array, and 17MW/19MWh battery energy storage system (BESS); and a thermal power component comprised of 27MW of gas generation, and 5MW of diesel standby generation. The PPA is for an initial period of 15 years from construction completion.

Zenith Energy will be incentivised to operate what is expected to become the largest off-grid renewable energy hybrid power station in Australia, in a manner which maximises renewable power.

The Liontown Resources ASX announcement can be viewed here.

We’re very pleased to have signed the PPA with Liontown Resources, which enables the partnership to move forward with the next stage of delivery of this industry leading, highly innovative, secure, low carbon emissions hybrid power solution to the Kathleen Valley project. Zenith Energy is proud to continue to play a lead role in the energy transition and to provide our partners with a glide path to net zero.” Hamish Moffat, Managing Director and CEO

Liontown Resources CEO, Tony Ottaviano said the signing of the PPA marked another important construction milestone for the Kathleen Valley Project and helped to achieve the company’s ESG commitments to reduce the carbon footprint. “When fully constructed, this hybrid power station will enable Liontown to exceed our target of achieving at least 60% renewable energy at project start-up and beyond.

Zenith Energy’s commitment to deliver a high-capacity hybrid power solution includes incentives to produce renewable power over thermal power and, together with a renewable energy guarantee, sets us up to meet our renewable energy target of 60 per cent at start up.”

Zenith Energy has progressed the necessary planning, legal, engineering and design works, as well as placing orders for long lead items, each of which is required to facilitate the delivery of the Hybrid Power Station in line with the Kathleen Valley Project schedule.

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