Western Australia-headquartered remote power specialist Zenith Energy will finance, design, build, own, operate and maintain a hybrid power station at the Lynas Rare Earths Mt Weld mine, 35 kilometres southeast of Laverton, Western Australia.
The hybrid power station will include a 7 MW solar farm, a 12 MW / 12 MWh battery energy storage system (BESS), and a four-turbine 24 MW wind farm. The renewables system will be supported by a 17 MW gas-fired power station and 5 MW of standby diesel generation.
Under a power purchase agreement (PPA) for a term of 15 years, the solar, BESS and wind components will be installed progressively, with full operation expected in 2026.
Lynas Rare Earths Chief Executive Officer and Managing Director Amanda Lacaze said the company’s commitment to renewable energy sources offers a lower unit cost of power compared to a thermal-only power solution.
“Moving away from the legacy diesel power plant to a gas-firmed hybrid renewable power station is a significant step in our greenhouse gas emissions (GHG) reduction plan,” Lacaze said.
“As part of our commitment to reducing GHG and progressively transitioning to cleaner energy sources, the existing Mt Weld diesel power plant will be decommissioned as soon as the thermal (gas) power station is completed.”
Zenith Energy Chief Executive Officer and Managing Director Hamish Moffat said the signing of the Mt Weld hybrid power station PPA represents a significant milestone for the company.
“With our contracted wind capacity now exceeding 100 MW, Zenith looks forward to enabling Lynas to deliver on their productivity and decarbonisation objectives.”
The Mt Weld Power Station has been designed to run “engine-off” during periods of high renewable energy production and achieve an average annual renewable energy percentage of up to approximately 70%.
Zenith is currently contracted to operate 15 separate remote generation power facilities, with a capacity of more than 650 MW across Western Australia and the Northern Territory.
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