Renewables at their Zenith as Liontown lifts lithium with hybrid power project

WA Energy Minister Reece Whitby officially opened the Kathleen Valley hybrid power system, ushering in a new age of emissions free mining for the energy transition.

The power system is the largest operating off-grid power system in Australia, designed, funded, built, owned and operated by Zenith Energy for Liontown Resources (ASX: LTR).

The 95MW Kathleen Valley hybrid power system incorporates the nation’s largest off-grid wind farm utilising the largest land-based wind turbines in the country.

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.

While more lithium — a key enabler for batteries and EVs — is essential for the energy transition, increased production introduces more challenges for achieving net zero by 2050. As mining ramps up to meet demand, energy consumption of operations will also follow.

The Australian mining sector consumes roughly 500 petajoules per year, 10% of Australia’s total energy use, according to the Australian Renewable Energy Agency’s 2020 Renewable Energy in the Australian Mining Sector report. At the time of the report, consumption was also rising at 6% per annum, driven primarily by increased mining volumes.

With this in mind, industry will need to shift focus from production to sustainable improvements that can be made at every point across the supply chain — from reducing waste in the delivery of renewable technology, to protecting sacred lands.

All systems off

The power system is designed to operate in “engine off” mode when wind and solar resources are available, enabling Liontown to continuously operate from 100% renewable energy during those periods.

Zenith Energy chairman Doug Walker says this is a welcome change.

“For someone like me, who spent my entire career, designing and commissioning gas power stations, ensuring they wouldn’t stop, it’s sort of weird at first, but now I wouldn’t have it any other way,” he said.

“Going ‘engine off,’ goes right to the heart of what global energy transition decarbonisation is.

“We successfully achieved this at IGOs Nova (ASX: IGO) operations and now we have operated both Kathleen Valley and our neighbours, Bellevue Gold (ASX: BGL), in ‘engine off’ mode for prolonged periods of time over the last two months.

“This has happened in unison — both projects have been operating in ‘engine off’ mode, only on renewables, during production, simultaneously.”

Zenith Energy chief executive Hamish Moffat says this project provides a clear pathway to connect resources — with a potential plan in place to promote sharing of infrastructure between neighbouring mining operations, enabling the creation of a larger energy system that can effectively deliver 100% renewable energy.

“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,” he said.

“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.”

Mr Walker says Zenith’s innovation is already catalysing change in the Kathleen Valley, with Bellevue, Northern Star Resources (ASX: NST) and Lynas Rare Earths (ASX: LYC) also working with the company to adopt solar and wind technologies at their operations.

A homegrown approach

Zenith and Liontown are leveraging the unique strengths of WA to produce landmark results.

Importantly, this project represents another independent power producer (IPP) first in Australia — a formal engagement agreement with Traditional Owners.

The 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 provide power-related services at Kathleen Valley and Zenith Energy’s other power stations on Tjiwarl Country.

Mr Walker says this is a defining moment for the mining industry’s engagement with Australia’s first Indigenous people, the Tjiwarl people.

“This is the first time an IPP has negotiated an engagement agreement with Tjiwarl and with Traditional Owners, including the forming of a JV company with the aim of self-determination for the Native Title holders,” he said.

“Zenith energy will be working with our Tjiwarl partners, encouraging, guiding, supporting future power developments that are aimed at delivering sustainable economic outcomes.”

Tjiwarl Director 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.”

Minister Whitby says this project opens up opportunities for Indigenous people.

“Zenith and Liontown are allowing Indigenous people the opportunity and the training to become experienced in the operation and maintenance of power plants,” he said.

“That’s an opportunity right here in the Kathleen Valley and it’s also an opportunity right across the northern goldfields and beyond, as we as we grasp the potential of renewable energy and how that can be brought back into the grid.”

In addition to driving Indigenous engagement, the project demonstrates the strength of WA not only as a traditional mining jurisdiction, but also as a leader for renewables.

Minister Whitby says nowhere else on the planet has the potential that WA has for renewables.

“No exaggeration, we have the best wind resources on the planet,” he said.

“We have the best solar resources and, of course, another critical ingredient of renewables, lots and lots of land.

“I think we underestimate the importance of having land and the scale of infrastructure required by renewable resources and renewable generation.

“We also have a mining industry that knows it must decarbonise through Zenith — a great homegrown WA company — and of course, Liontown, another WA company.

“[They] are going to achieve an average of 60% renewable energy here at Kathleen Valley — some days, it will be 100%, often it will be 85%.

“This system is a version of what we’re achieving in the wider grid in the [South West Interconnected System] SWIS in WA, to power the homes of Perth and much of the Southwest.”

Minister Whitby says the Kathleen Valley is sending a message to sceptics, that renewables can handle the load.

“People who are sceptical about wind or solar power: come to this mine site,” he said.

According to the IEA, nearly 70 countries that collectively account for 80% of global renewable power capacity are poised to reach or surpass their current renewable ambitions for 2030, with solar PV alone expected to account for 80% of the growth in global renewable capacity.

While this project represents many firsts, it also signals a turning tide, with the surge of renewables expected to come on in full force over the next decade. With developments like this in the Kathleen Valley, Australia stands to cement itself as a leader within this renewables rush.