Zenith inks PPA for 65-MW hybrid at W Australia rare earths mine

Australian off-grid power specialist Zenith Energy has signed a power purchase agreement (PPA) underpinning the construction and operation of a 65-MW hybrid renewable and traditional fuel energy setup at a rare earths mine in Western Australia.

The company said it had signed contracts with miner Lynas Rare Earths Ltd (ASX:LYC) to design, build, own, operate and maintain the hybrid power station at the Mt Weld Mine, located 35 kilometres (21.7 miles) south-east of the Western Australian town of Laverton.

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The Mt Weld Power Station will consist of a 24-MW wind farm with four turbines, a 7-MW solar photovoltaic plant and a battery energy storage system (BESS) of 12 MW/12 MWh. The renewables portion of the power station will be supported by a 17-MW high-efficiency gas-fired plant with 5 MW of standby diesel generation.

Zenith said that it is already at the Mt Weld site performing early construction works in line with the 2023 preliminary and early works agreements with Lynas.

The existing Mt Weld diesel power plant will be decommissioned as soon as the gas-fired plant is completed, according to Amanda Lacaze, Lynas CEO and Managing Director.

“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,” said Lacaze.

According to Zenith’s timetable, the new diesel and gas-fired facilities are set to be completed in the first half of calendar year 2025. Solar and BESS facilities will be installed progressively, with full operation expected in 2026.

The 15-year PPA is timed to commence with the commercial operation of the wind farm, which is scheduled to take place during 2026.

The Weld Power Station is expected to reach an average annual renewables share of up to 70%. It has been designed to run “engine-off” during periods of high renewable energy production, Zenith said.

“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 100 MW,” Zenith CEO and Managing Director Hamish Moffat stated.

The off-grid and micro-grid systems installer is currently contracted to operate 15 separate remote power generation facilities across Western Australia and the Northern Territory, with their capacity exceeding 650 MW.