Maddington-based PWR Hybrid has been named as the preferred proponent to build a microgrid at Australian Potash’s $208 million development in the Goldfields.
Maddington-based PWR Hybrid has been named as the preferred proponent to build a microgrid at Australian Potash’s $208 million development in the Goldfields.
Today, Australian Potash announced PWR was the preferred proponent to build, own and operate the 35-megawatt microgrid at Lake Wells, which is expected to achieve a renewable energy fraction (REF) above 65 per cent.
Both companies have signed a purchase power agreement, to be finalised through an early contractor involvement process now under way.
Australian Potash managing director Matthew Shackleton said Lake Wells would become the country’s greenest sulphate of potash (SOP) project.
Lake Wells is expected to deliver 170,000 tonnes per annum over a 30-year period, starting in 2023, with more than 90 per cent of revenue from production already secured under offtake arrangements.
Mr Shackleton said Australian Potash had shifted the focus of Lake Wells to a sustainable energy footing, noting its SOP distributors were operating in regions where industries were valued for their contribution to the reduction of greenhouse gases.
“Many of these jurisdictions have, or are preparing to adopt, sustainable finance disclosure standards," he said.
“With our vision on the operational future of the LSOP, and therefore our end-users, we consider it vital to address sustainable production of SOP as a critical path item.”
The microgrid will be developed in a staged approach, with the thermal component to be completed within about 15 months of Australian Potash making a final investment decision for Lake Wells.
PWR Hybrid director Ryan Green said the company was well positioned to partner with Australian Potash on the microgrid, noting it had recently delivered a 12MW gas-fired power station in Western Australia.
The Lake Wells project is located about 500 kilometres northeast of Kalgoorlie.
It is one of three SOP developments supported by government-owned Northern Australia Infrastructure Facility, which awarded Australian Potash with a $140 million loan in March.
The other potash companies to have secured NAIF backing are BCI Minerals and Kalium Lakes, which are developing projects in the Pilbara.
