Liontown & Zenith officially open Australia’s largest operating off-grid power system

WA Energy Minister Reece Whitby today officially opened the Kathleen Valley hybrid power system – designed, funded, built, owned and operated by Zenith Energy for Liontown Resources (ASX: LTR).

This integrated solar farm, wind farm, battery and firming LNG power plant will enable the miner to operate with a minimum 60% emissions-free energy at its Goldfields hard rock lithium mine in WA.

It is also largest operating off-grid power system in Australia, with the 95MW Kathleen Valley hybrid power system incorporating the nation’s largest off-grid wind farm utilising the largest land-based wind turbines in the country.

The system showcases the ability of renewables to deliver reliable, continuous supply to support an entire mining operation. Its capacity is the equivalent of powering over 18,000 WA homes.

Minister Whitby says the project is a great example of how industry is helping decarbonise WA.

“By using renewable energy to power its lithium mining, Liontown Resources and Zenith Energy are showcasing what WA’s future as a clean energy superpower will look like,” he said.

“This complements the WA Government’s $5.4b investment in transmission, onshore wind, and battery storage, which is helping lower household and industry emissions.”

Zenith Energy chief executive Hamish Moffat says the multi-award-winning hybrid system illustrated the vision for the energy transition.

“Australia’s mining sector, the [Federal] and WA Governments all have ambitious decarbonisation goals, which this hybrid system solution enables,” he said.

“Liontown set out with a clear goal from the start at Kathleen Valley – to operate with the lowest possible carbon footprint – and Zenith Energy is proud to be providing a market-leading solution and its strategic energy partner for this landmark project.

“Not only does the Kathleen Valley hybrid power system show the way forward as a world-class project, but it also demonstrates how decarbonisation of the mining sector can be achieved through joint effort and shared success.

“This integrated renewable energy solution demonstrates Zenith Energy’s leadership in the energy transition and the glide path for mining operations to achieve net zero.

“It is a credit to everyone involved that Kathleen Valley not only set a new benchmark in the energy transition for Australia’s off-grid mining sector, but that it has also catalysed power purchase agreements for multiple other similar high fraction renewable energy hybrid power systems in the sector.

Liontown Resources managing director and chief executive Tony Ottaviano says Zenith Energy has a strong technical understanding of the challenges and need for close collaboration.

“Zenith Energy worked hand in hand with the Liontown technical team to achieve our goals, was competitively priced and willing to back the outcome commercially,” he said.

Today’s official opening at Kathleen Valley also celebrated another independent power producer first in Australia – a formal engagement agreement with Traditional Owners.

This Engagement Agreement between Zenith Energy and Native Title determined owners Tjiwarl Aboriginal Corporation, through its subsidiary Tjiwarl Contracting Services, was enabled by Liontown’s requirement for Traditional Owner involvement on all major contracts at Kathleen Valley.

A key outcome of the Engagement Agreement has been the formation of a Tjiwarl 80% majority-owned JV called Tjiwarl Katu Power, to, among other things, provide power-related services at Kathleen Valley and Zenith Energy’s other power stations on Tjiwarl Country.

Tjiwarl rirector and Native Title holder Kado Muir says the immediate drive for the joint venture is to transition operations and maintenance activities at the power station to Tjiwarl Katu Power.

“To this end, Tjiwarl Katu Power is in the process of establishing its operational resources to start servicing the power station this year,” he said.

“This agreement with Tjiwarl people, supported by Liontown, is a leading case study for how Zenith Energy is paving the way for First Nations people to get involved in renewable energy transition projects with equity participation that leads to addressing socio-economic disadvantage.”

Mr Ottaviano says the efficiency with which the power station had been constructed and commissioned was testament to what could be achieved when Traditional Owners, mine operators, specialist contractors and a power provider work together towards a common goal.

Beyond the Kathleen Valley project, the next energy transition milestone is already underway at Bellevue Gold, where Zenith Energy is delivering Australia’s highest renewable energy fraction off-grid power system to provide a minimum 80% emissions free energy solution.

Zenith Energy has also carried out renewable energy retrofits at IGO’s (ASX: IGO) Nova Operations, Northern Star Resources’ (ASX: NST) Jundee operations, and recently commenced work on a renewable energy hybrid solution for Lynas’ Rare Earths’ (ASX: LYC) Mt Weld Operations.