The Liontown Resources Ltd (ASX: LTR) share price is pushing higher on Wednesday.
In morning trade, the lithium developer's shares are up over 2% to $1.61.
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Why is the Liontown share price rising today?
There have been a couple of catalysts for this rise. The first is a positive start to the session for ASX lithium shares, the second is the release of an announcement.
In respect to the latter, Liontown has awarded the supply contract for liquified natural gas (LNG) to Mid-West LNG, which is owned by Clean Energy Fuels Australia (CEFA).
Management notes that the LNG supply contract is a key deliverable for the 95 MW Hybrid Power Station at the Kathleen Valley Lithium Project.
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.
LNG will be produced at the CEFA Mount Magnet Mid-West LNG Hub located at Mt Magnet, around 370 kilometres from Kathleen Valley. This Hub is directly connected to the Mid-West Gas Pipeline, which connects to the Dampier to Bunbury Gas Pipeline, providing access to natural gas fields in the mid-West and North-West.
Liontown's managing director and CEO, Tony Ottaviano, said:
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.
We are focused on our renewable energy target of at least 60 per cent at start up delivered through wind, solar, battery storage and thermal components of LNG generation. Our LNG supply contract with CEFA enables reliability of supply and through an 'engine off' mode we will be able to operate from 100 percent renewable energy. We remain focused on our commitment to deliver on our ESG credentials and establish industry-leading carbon emissions from the outset.
