Northern Star signs renewables agreement with Zenith Energy

Zenith Energy has signed a 25-year power purchase agreement (PPA) to supply Northern Star’s (ASX: NST) Kalgoorlie consolidated gold mines (KCGM) in WA. 

The PPA underpins the development of Australia’s largest renewable project in the mining sector, comprising of 256MW of wind generation, 138MW of solar generation and 138MW/300MWh of battery energy storage. 

Under the agreement, Zenith will fund, build, own and operate the renewable power facilities which will deliver lower power costs, increase energy reliability and contribute materially to emissions reduction at the KCGM operations. 

Key design, engineering and procurement activities are already underway on the project which will take Zenith Energy’s contracted generation across Australia to beyond 1.3GW, more than 50% of which is renewable energy. 

The 138MW solar farm will be the largest of its kind deployed at an Australian mining operation and will use more than 230,000 solar panels. 

Australian solar system manufacturer 5B has been selected to supply the solar farm which will be deployed on 5B’s rapid-install Maverick platform manufactured in Australia at the company’s Adelaide facility. 

Leading wind turbine supplier Goldwind Australia has been selected to provide wind turbines for the wind farm, which will be located approximately 10km outside of Kalgoorlie. The wind turbines will be amongst the largest in Australia, with the towers standing 150m high and a rotor diameter of 182m.  

Zenith Energy will also source, own and operate a 138MW/300 MWh Battery Energy Storage System to optimise the delivery of renewable energy. 

Zenith Energy managing director Hamish Moffat says the landmark PPA exemplified the energy transition taking place at scale in WA’s Goldfields, a region key to Australia’s critical and precious metals industry.  

“This renewable energy solution provides Northern Star with cost-effective power while having the future potential to improve energy reliability for Kalgoorlie,” he said.  

“The KCGM project provides a blueprint for what modern mining energy systems should look like — cost-effective, clean, scalable, reliable and delivery of real benefits to local and regional communities.” 

In addition to the PPA for renewable energy, Zenith Energy has entered a joint venture with Northern Star to supply 120MW of thermal generation along with a 132kV transmission network and substations. Zenith will also build and operate the new thermal power station and transmission infrastructure under the terms of a 25-year arrangement. 

Together, the renewable and thermal generation projects will be known as the Eastern Goldfields power projects.  

Technology group Wartsila will supply 10 high-efficiency dual-fuel generators along with associated auxiliary equipment and control systems to power the thermal component of the project.  

Adelaide based company RJE Global will supply key components of the 132kV transmission system, including power transformers, as well as engineering, design and construction services.