Lynas Rare Earths has awarded a power purchase agreement to Zenith Energy for its Mount Weld mine and concentration plant located near Laverton in Western Australia.
Under the agreement, Zenith will finance, build, own, operate and maintain a new gas-firmed hybrid renewable power station at Mount Weld for a 15-year term.
The term will commence from the installation of the hybrid power station’s wind energy component, which is scheduled to occur in 2026.
According to Lynas, the hybrid power station will reduce greenhouse gas (GHG) emissions by about 60,000 tonnes of carbon dioxide equivalent per annum compared to a diesel-only power station of the equivalent size.
Once completed, the hybrid power station will have a capacity of around 65 megawatts (MW), comprising a 24MW wind farm, a 7MW solar photovoltaic farm, a 12MW battery energy storage system, a 17MW high efficiency gas fired power station.
To provide redundancy in the back-up system for 24/7 operation, a total of 5MW of diesel standby generation will be installed.
When fully operational, the hybrid power station will have the ability to provide renewable-only power during periods of high renewable energy production.
“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 Mount Weld,” Lynas managing director and chief executive officer Amanda Lacaze said.
“As part of our commitment to reducing GHG emissions and progressively transitioning to cleaner energy sources, the existing Mount 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 reducing the GHG emissions intensity of our Mount Weld operations. Pleasingly, our commitment to renewable energy sources also offers a lower unit cost of power compared to a thermal-only power solution.”
Construction of the thermal power station is expected to be completed in the first half of 2025, with full operation expected in 2026. Renewables will be installed progressively between 2025 and 2026.
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