Liontown Resources has awarded a contract for the supply of LNG to its Kathleen Valley lithium project in Western Australia to Mid-West LNG Pty Ltd, a group company of Clean Energy Fuels Australia (CEFA).

LNG-fuelled thermal power is a key component of the 95 MW hybrid power station at Kathleen Valley, which is expected to be among the largest off-grid wind-solar-battery storage renewable energy facilities in Australia.

The initial LNG supply will commence in January 2024 in time for planned early commissioning activities and the contract contemplates renewable energy penetration in line with Liontown’s target to be at least 60% renewably powered from start-up while providing surety of supply, the company says.

The LNG supply contract is a key deliverable for the 95 MW hybrid power station. The power station comprises wind turbines, solar panels, battery storage, diesel and gas-fired generators, which are designed to operate in ‘engine off’ mode enabling Liontown to operate from 100% renewable energy during periods of high wind and solar penetration.

LNG will be produced at the CEFA Mount Magnet Mid-West LNG Hub located at Mt Magnet, around 370 km from Kathleen Valley. The hub is directly connected to the Mid-West Gas Pipeline, which connects to the Dampier to Bunbury Gas Pipeline, providing access to natural gas fields in the mid-West and North-West

The 15-year supply contract aligns with the Zenith Power Purchase Agreement and enables flexibility for quantities and access to ‘sprint’ capacity as required throughout the contract period, the company says. This will support the company’s target to be at least 60% renewably powered from start-up, while having 100% thermal power redundancy for the operation. The contract comprises fixed and variable charges for gas supply, liquification and transport.

LNG supply will commence in January 2024 to support planned early plant commissioning activities.