Strandline Resources has signed an agreement with Contract Power Australia for hybrid gas and renewable energy supply at the Coburn mineral sands project in Western Australia.
The 15-year electricity agreement will enable cheaper power costs at the project, compared with what was predicated in last year’s definitive feasibility study (DFS).
Strandline will have access to a power station at Coburn that’s capable of supporting around 10 megawatts of average consumed power with a maximum demand of 15 megawatts.
Contract Power will construct, own, operate and maintain the solution’s power generation, LNG storage and regasification facilities.
The 32-megawatt hybrid gas and renewable energy solution integrates both energy sources to save on costs and emissions and will be located near the Coburn mineral separation plant.
Natural gas for the infrastructure will be supplied by external suppliers through a long-term LNG supply agreement and transported to an on-site storage and re-vaporisation facility.
LNG will be used by the energy generators, which also use around 30 per cent solar power, with electricity generation at 11 kilovolts, with the opportunity to move up to 22 kilovolts.
The 15-year contract will also incorporate wind turbine and other technology solutions if they become “commercially attractive” to Strandline, the company stated.
According to Strandline managing director Luke Graham, the contract had furthered Strandline’s journey in bringing Coburn into production.
Contract Power has more than 30 years’ experience in remote power generation to mines and towns.
Strandline aims to produce 23.4 million tonnes per annum of mineral sand products across a 22.5-year lifespan at Coburn.
It is expected to be one of the largest mineral sands projects globally.