Hybrid Power Agreement for WA Mine

Zenith Energy has signed a power purchasing agreement (PPA) with Lynas Rare Earths to develop and manage a hybrid power station at Lynas’ Mount Weld Mine in Western Australia. The innovative project will include a 24MW wind farm with four turbines, a 7MW solar PV farm, and a 12MW/12MWh battery energy storage system. Additionally, the renewable facility will be backed by a 17MW high-efficiency gas-fired power station and 5MW of standby diesel generation. Upon completion, the total installed capacity of the Mount Weld Power Station is projected to be around 65MW.

The PPA has a term of 15 years, starting from the commercial operation of the wind farm scheduled for 2026. The diesel and gas facilities are expected to be operational by the first half of 2025, with the solar and battery systems installed progressively and full operations anticipated by 2026. Zenith Energy aims to run the power station “engine-off” during periods of high renewable energy production, targeting an average annual renewable energy percentage of approximately 70%.

Zenith Energy operates 15 remote generation power facilities, totaling over 650MW across Western Australia and the Northern Territory. Early construction works have begun at the Mount Weld site following preliminary agreements with Lynas in 2023. Zenith Energy CEO, Hamish Moffat, expressed enthusiasm about partnering with Lynas, a leading producer of rare earth materials outside China, to achieve high renewable energy fractions for Mount Weld operations.

The hybrid power station represents a milestone for Zenith Energy, pushing their contracted wind capacity beyond 100MW. This project supports Lynas’ goals of enhancing productivity and reducing carbon emissions. According to Lynas CEO Amanda Lacaze, transitioning from the existing diesel power plant to a gas-firmed hybrid renewable power station is a crucial step in their emissions reduction plan, also promising lower power costs compared to thermal-only solutions.