Tag Archives: Tony Ottaviano

Zenith Energy, Liontown go big with proposed hybrid power plan at Kathleen Valley lithium project

Zenith Energy and Liontown Resources have partnered on what they say is Australia’s largest off-grid renewable energy hybrid power station project.

The letter of award between the two companies covers a potential contract to build, own, and operate the hybrid power station in Australia at Liontown’s Kathleen Valley Project in Western Australia.

The award will see Zenith Energy construct a 95 MW hybrid power station at Kathleen Valley in the Goldfields-Esperance region, which includes 30 MW of wind capacity, 16 MWp fixed axis solar PV array and a 17 MW/19 MWh battery energy storage system (BESS).

Kathleen Valley is one of the world’s largest and highest-grade hard-rock lithium deposits and, with an initial 2.5 Mt/y production capacity, is expected to supply circa-500,000 t/y of 6% lithium oxide concentrate, according to the company. With first production expected in June quarter of 2024, the deposit will also produce tantalum pentoxide.

Zenith Managing Director, Hamish Moffat, says the partnership will allow Zenith Energy to demonstrate its innovation, flexibility and expertise to deliver low-carbon emitting hybrid power solutions.

“Zenith Energy is proud to continue to play a lead role in the energy transition, and to provide like-minded partners with a glide path to net zero,” he said. “The project also further demonstrates Zenith Energy’s continued commitment to increasing the proportion of renewable generation in our portfolio.”

Artist impressions of what the Kathleen Valley site will look like (and above)

Moffat says the thermal components of the power station are designed to operate in ‘engine off’ mode at various times, delivering 100% renewable energy generation to Kathleen Valley.

“It’s an exciting opportunity to showcase our expertise, and the ability of renewables to deliver reliable, continuous supply, to power an entire mining operation,” he said. “It will once again raise the industry benchmark in renewable energy integration and demonstrates our commitment to power decarbonisation.”

Other unique aspects of the agreement include:

  • Largest off-grid hybrid power station in Australia: The hybrid power station is currently expected to have the largest off-grid renewable capacity of any mining project in the country, with 46 MW and 17 MW BESS; and
  • Renewable incentives: A combination of incentives to produce renewable power over thermal power together with a renewable energy guarantee will allow Liontown to meet and exceed its renewable energy factor target of 60% at startup and beyond.

Liontown Managing Director and CEO, Tony Ottaviano, says Liontown is delighted to partner with such an experienced and highly competent power producer.

“We believe Zenith Energy is an ideal partner to delivery an industry leading hybrid power station to meet Liontown’s energy needs and requirements for a high-capacity renewable solution,” Ottaviano said. “The hybrid power station proposed will enable Liontown to exceed our target of achieving at least 60% renewable energy at project start-up and beyond.”

Moffat says Zenith Energy is engaged with Traditional Owners, recently announcing a collaboration with Tjiwarl Contracting Services to work together to deliver low carbon emission power solutions for miners and communities on Tjiwarl native title determined lands.

Zenith Energy and Liontown have agreed key commercial terms and are working to finalise arrangements under a binding long term build, own and operate power purchase agreement.

Liontown secures Metso Outotec SAG mill ahead of Kathleen Valley lithium FID

Liontown Resources Ltd says it has awarded a key contract to Metso Outotec for the design, fabrication and delivery of a SAG mill for its flagship Kathleen Valley lithium project in Western Australia.

Following the completion of the definitive feasibility study (DFS) for Kathleen Valley in November 2021, the company has completed further engineering optimisation to confirm the scope and duty of the SAG mill to a sufficient level of detail to enable it to place the order with the OEM.

The contract, which has a value of circa-A$10 million ($7.2 million) and is in accordance with DFS estimates, is for the design, fabrication and delivery of a 7.9 m diameter and 4.4 m effective grinding length 5.5 MW SAG mill. This is inclusive of all lining, lubrication, cooling, electrical and mechanical drive systems necessary for installation and commissioning.

The SAG mill, from Metso Outotec’s Premier™ range (an example above), will accommodate both base production of 2.5 Mt/y and the planned expansion to 4 Mt/y in year six of the mine plan, Liontown said.

The SAG mill is one of several critical long-lead items identified for early award and represents the largest single piece of equipment required to be purchased for the project by size, value and lead time, the company added.

“Detailed engineering and design for the A$473 million Kathleen Valley project continues and Liontown is targeting the award of all key equipment packages over the next six months to maintain schedule and meet its target of first production of lithium concentrate in 2024,” it said.

Other key project deliverables including final permitting and securing the engineering, procurement and construction management partner to build and commission the Kathleen Valley project are progressing to meet the targeted Final Investment Decision milestone by the end of the June quarter.

Liontown’s Managing Director and CEO, Tony Ottaviano, said: “The SAG mill contract is the first of the long-lead items to be ordered and represents an important milestone for the Kathleen Valley project. Placing this significant order with a world-class partner in Metso Outotec is a great way to start the year and reflects our commitment to advance the Kathleen Valley project rapidly towards first production.”

The November 2021 DFS outlined base production of 2.5 Mt/y, producing around 500,000 t/y of spodumene concentrate with a 4 Mt/y expansion planned in year six, to deliver circa-700,000 t/y of spodumene concentrate.

The Metso Outotec Premier horizontal grinding mills are customisable solutions built on state-of-the-art grinding mill technology, process expertise and design capability, the OEM says. They are engineered to “excel and create vast possibilities” for customers and applications.