Liontown Resources Limited announced that it has executed a Letter of Award (LOA) with Australian independent power producer Zenith Energy Pty Ltd. (Zenith Energy) for the supply of power to the Kathleen Valley Lithium Project (Kathleen Valley) in Western Australia. The LOA follows a competitive tender process and agreement on the key commercial terms. Zenith Energy will finance, design, construct, own, operate and maintain a 95MW hybrid power station at Kathleen Valley (Hybrid Power Station) for an initial term of 15 years from commercial operation of the Hybrid Power Station, which is expected to coincide with process plant commissioning in H1, 2024. The Hybrid Power Station will include wind generation from five wind turbines each capable of generating 6MW. A 16MWp fixed axis solar PV array coupled to a 17MW /19MWh Battery Energy Storage System (BESS) will provide additional clean energy, supported by highly reliable synchronous condensers that provide critical system stability and resilience. The thermal power component will comprise 27MW of gas generation and 5MW of diesel standby generation. Once fully constructed, the Hybrid Power Station is currently expected to have the larger off-grid renewable capacity (46MW (wind and solar) plus 17MW BESS) of any mining project in Australia. The need to achieve and maintain high levels of renewable energy penetration has informed the design of the Hybrid Power Station, such that the facility will be able to run in "engine off" mode for significant periods of time. A combination of incentives to produce renewable power over
thermal power and a renewable energy guarantee should enable Liontown to meet and exceed its renewable energy factor commitments. The Letter of Award allows Zenith Energy to commence the necessary planning, legal, engineering and design works, as well as placing orders for long lead items, each of which is required to facilitate the delivery of the Hybrid Power Station in line with the Kathleen Valley project schedule. The parties have also agreed to use their best efforts to finalise a binding Power Purchase Agreement within 90 days of the date of the Letter of Award.