Zenith Energy has signed a power purchasing agreement (PPA) with Lynas Rare Earths to design, build, own, operate and maintain a hybrid power station – including a 24MW wind farm with four wind turbines, a 7MW solar PV farm, and a 12MW/12MWh battery energy storage system – at Lynas’ Mount Weld Mine.
The renewable facility will be supported by a 17MW high efficiency gas fired power station, with 5MW of standby diesel generation. The total installed capacity of the Mount Weld Power Station upon completion is expected to be approximately 65MW.
The term of the PPA is 15 years, commencing from commercial operation of the wind farm, which is scheduled to occur in 2026. The diesel and gas facilities are scheduled to be completed in the first half of 2025, with solar and battery energy storage system to be installed progressively, and full operation expected in 2026.
Zenith Energy said that the Mount 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 per cent.
The company is currently contracted to operate 15 separate remote generation power facilities, with a capacity of more than 650MW across Western Australia and the Northern Territory.
Zenith Energy has commenced early construction works at the Mount Weld site, having entered into preliminary and early works agreements with Lynas in 2023.
Zenith CEO and Managing Director, Hamish Moffat, said, “As a leading provider of sustainable energy solutions to the Australian resources market, Zenith is pleased to be working with Lynas, the world’s only significant producer of separated rare earth materials outside of China, on the high renewable energy fraction hybrid power solution to their Mount Weld operations.
“The signing of the Mt Weld Hybrid power station Power Purchase Agreement represents a significant milestone for Zenith Energy, with our contracted wind capacity now exceeding 100MW. Zenith Energy looks forward to enabling Lynas to deliver on their productivity and decarbonisation objectives.”
Lynas CEO and Managing Director, Amanda Lacaze, said, “Lynas produces materials used in the manufacture of 21st century technologies and we look forward to working with Zenith Energy as it delivers a 21st century power solution for Mount Weld.
“As part of our commitment to reducing GHG emissions and progressively transitioning to cleaner energy sources, the existing Mount Weld diesel power plant will be decommissioned as soon as the thermal (gas) power station is completed.
“Moving away from the legacy diesel power plant to a gas-firmed hybrid renewable power station is a significant step in our GHG emissions reduction plan. Pleasingly, our commitment to renewable energy sources also offers a lower unit cost of power compared to a thermal-only power solution.”
Featured image: An image of Lynas’ Mount Weld mine site. Image credit: Zenith Energy.