Zenith Energy, Liontown Resources enter PPA for largest off-grid hybrid power station

The 95MW hybrid station will supply power to the Kathleen Valley Lithium Project.

Independent power producer Zenith Energy and Liontown Resources have signed a power purchase agreement (PPA) to supply power to the Kathleen Valley Lithium Project in Western Australia.

In a statement, Liontwon Resources said the project will entail the construction of a 95-megawatt hybrid power station at Kathleen Valley with Zenith Energy financing, construction, and operation of the power plant for the first 15 years. It is expected to be commissioned in the first half of 2024. 

The power station will consist of five wind turbines which can generate 6 megawatts (MW) each, a 16MW-peak fixes axis solar PV array, along with a 17MW/19MW-hour battery energy storage system.

The thermal component, meanwhile, will include 27MW of gas generation and 5MW of diesel standby generation.

Liontown said its A$25m guarantee facility from Export Finance Australia as part of the security package of the PPA for the construction of the plant has been approved.