The Liontown Resources Limited (ASX: LTR) share price is starting the week poorly.
In morning trade, the lithium developer's shares are down 2.5% to $1.76 despite the ASX 200 index storming higher.
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Why is the Liontown share price falling?
Broad weakness in the lithium industry on Monday appears to have offset the release of a positive announcement this morning relating to the company's Kathleen Valley Lithium Project in Western Australia.
According to the release, the company has awarded independent Australian power producer Zenith Energy the contract for the supply of power to the project. This follows a competitive tender process and agreement on the key commercial terms.
The release notes that Zenith Energy will finance, design, construct, own, operate and maintain a 95MW hybrid power station at Kathleen Valley for an initial term of 15 years from commercial operation. This is expected to coincide with process plant commissioning in the first half of 2024.
The hybrid power station will include wind generation from five wind turbines and a fixed axis solar PV array coupled to a battery energy storage system (BESS). Once fully constructed, it is expected to have the largest off-grid renewable capacity of any mining project in Australia.
'Important milestone'
Liontown's managing director and CEO, Tony Ottaviano, believes this is another important milestone. He commented:
Awarding the Power Supply contract is another important milestone for Liontown and the development of Kathleen Valley. We continue to deliver on our ESG credentials by taking real action to reduce the Project's carbon emissions from the outset. We are delighted to partner with Zenith Energy, an experienced and highly competent power producer, following completion of a thorough competitive tender and commercial negotiation process.
We believe Zenith Energy is an ideal partner to deliver an industry leading hybrid power station to meet Liontown's energy needs and requirements for a highcapacity renewable solution. When fully constructed, this hybrid power station will enable Liontown to exceed our target of achieving at least 60% renewable energy at Project start-up and beyond.
