Australian off-grid power specialist Zenith Energy has finalized a power purchase agreement (PPA) with Lynas Rare Earths Ltd for the development of a 65-megawatt hybrid renewable and traditional fuel power station at the Mt Weld Mine in Western Australia. The Mt Weld Mine is located 35 kilometers southeast of Laverton.
Under the agreement, Zenith Energy will design, build, own, operate, and maintain the hybrid power station, which will include a 24-megawatt wind farm with four turbines, a 7-megawatt solar photovoltaic plant, and a battery energy storage system (BESS) with a capacity of 12 megawatts/12 megawatt-hours. The renewable energy components will be complemented by a 17-megawatt high-efficiency gas-fired plant and a 5-megawatt standby diesel generator.
Zenith Energy is currently conducting early construction works at the site as part of preliminary agreements with Lynas. The existing diesel power plant at Mt Weld will be decommissioned following the completion of the new gas-fired plant, according to Lynas CEO Amanda Lacaze.
“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,” Lacaze said.
The new power station's diesel and gas-fired components are scheduled for completion in the first half of 2025, with solar and BESS facilities to be installed progressively, aiming for full operation by 2026. The 15-year PPA will commence with the commercial operation of the wind farm, also expected in 2026.
Zenith Energy anticipates that the Mt Weld Power Station will achieve an average annual renewables share of up to 70% and is designed to operate “engine-off” during periods of high renewable energy production.
“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.
Zenith Energy is currently operating 15 remote power generation facilities across Western Australia and the Northern Territory, with a combined capacity exceeding 650 MW.
