Zenith Energy has signed a landmark agreement with Lynas Rare Earths Ltd to construct and operate a state-of-the-art hybrid power station at the Mt Weld Mine in Western Australia.
The project, located 35 kilometres southeast of Laverton, marks a significant step towards sustainable energy solutions in the mining sector.
The Mt Weld Power Station will boast a total installed capacity of approximately 65MW, combining renewable and traditional energy sources.
The facility will feature a 24MW wind farm with four turbines, a 7MW solar PV farm, and a 12MW/12MWh battery energy storage system.
To ensure reliable power supply, the renewable components will be supported by a 17MW high-efficiency gas-fired power station and 5MW of standby diesel generation.
Under the 15-year Power Purchase Agreement (PPA), Zenith will design, build, own, operate, and maintain the hybrid power station.
The project timeline anticipates the completion of diesel and gas facilities in the first half of 2025, with solar and battery storage systems to be installed progressively.
The full operation, including the wind farm, is expected to commence in 2026.
The innovative design of the Mt Weld Power Station allows for “engine-off” operation during periods of high renewable energy production, potentially achieving an average annual renewable energy percentage of up to 70 per cent.
This approach is expected to significantly reduce greenhouse gas emissions, with Lynas estimating a reduction of about 60,000 tonnes of carbon dioxide equivalent per annum compared to a diesel-only power station of equivalent size.
Hamish Moffat, CEO and Managing Director of Zenith Energy expressed enthusiasm about the project: “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.”
Amanda Lacaze, CEO and Managing Director of Lynas Rare Earths, highlighted the environmental and economic benefits of the new power station: “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.”
Zenith Energy currently operates 15 separate remote generation power facilities across Western Australia and the Northern Territory, with a total capacity exceeding 650MW.
As the world’s only significant producer of separated rare earth materials outside of China, Lynas Rare Earths’ commitment to this innovative power solution demonstrates the increasing importance of sustainability in the production of critical materials for modern technologies.
