Zenith Energy says it has signed contracts with Lynas Rare Earths Ltd to design, build, own, operate and maintain a hybrid power station at Lynas’ Mt Weld mine, 35 km southeast of Laverton, Western Australia.

The Mt Weld hybrid power station will include a 24 MW Wind Farm, 7 MW solar PV farm and a 12 MW/12 MWh battery energy storage system (BESS). This renewable facility will be supported by a 17 MW high efficiency gas fired power station, with 5 MW of standby diesel generation, Zenith explained. The total installed capacity of the Mt Weld Power Station upon completion will be approximately 65 MW.

The term of the PPA is 15 years, commencing from commercial operation of the wind farm, which is scheduled to occur in 2026. The diesel and gas facilities are scheduled to be completed in the first half of 2025, with solar and BESS to be installed progressively, and full operation expected in 2026.

The Mt Weld hybrid power station has been designed to run “engine-off” during periods of high renewable energy production and achieve an average annual renewable energy percentage of up to approximately 70%.

Zenith calls itself a leading independent power provider at the forefront of the transition to renewable energy in the mining sector. It is currently contracted to operate 15 separate remote generation power facilities, with a capacity of more than 650 MW across Western Australia and the Northern Territory.

Zenith has already commenced early construction works at the Mt Weld site, having entered into Preliminary and Early Works Agreements with Lynas in 2023.

Zenith CEO and Managing Director, Hamish Moffat, said: “As a leading provider of sustainable energy solutions to the Australian resources market, Zenith is pleased to be working with Lynas, the world’s only significant producer of separated rare earth materials outside of China, on the high renewable energy fraction hybrid power solution to their Mt Weld operations. The signing of the Mt Weld hybrid power station PPA represents a significant milestone for Zenith Energy, with our contracted wind capacity now exceeding 100 MW. Zenith look forward to enabling Lynas to deliver on their productivity and decarbonisation objectives.”.

Lynas CEO and Managing Director, Amanda Lacaze, added: “Lynas produces materials used in the manufacture of 21st Century technologies and we look forward to working with Zenith Energy as it delivers a 21st Century power solution for Mt Weld. As part of our commitment to reducing GHG emissions and progressively transitioning to cleaner energy sources, the existing Mt Weld diesel power plant will be decommissioned as soon as the thermal (gas) power station is completed. 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.”