Lithium development company Liontown Resources has awarded a contract for the supply of liquefied natural gas (LNG) to Mid-West LNG, part of Clean Energy Fuels Australia (CEFA).
The LNG supply contract is a key deliverable for the 95 MW hybrid power station at Kathleen Valley.
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.
“Liontown has secured a quality, regional West Australian contractor in CEFA to supply LNG to Kathleen Valley, ensuring the overall project remains on track for first production mid-2024.
“Kathleen Valley’s hybrid power station will be commissioned in early 2024, aligning with first production mid-2024,” said MD and CEO Tony Ottaviano.
LNG will be produced at the CEFA Mount Magnet Mid-West LNG Hub, located at Mt Magnet, about 370 km from Kathleen Valley.
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. This will support Liontown’s target to be at least 60% renewables-powered from startup, while having 100% thermal power redundancy for the operation.