Hydrostor Enters Agreement with Perilya to Support Construction of Large Scale Long Duration Energy Storage Using Existing Mine Assets

MELBOURNE, AUSTRALIA – Sep 28, 2023 – Hydrostor, a global long duration energy storage (LDES) developer and operator, and Perilya, a developer and operator of global mining projects, have entered into a binding agreement to leverage the existing mining assets at Perilya’s Potosi Mine in Broken Hill to support the construction of the Silver City Energy Storage (SCES) Project.

Perilya Broken Hill Limited and Hydrostor have been working together since 2020 to evaluate the potential of a large-scale long duration energy storage project adjacent to the Potosi Mine northeast of Broken Hill, NSW, which will continue to operate as normal.

The Silver City Project uses Hydrostor’s Advanced Compressed Air Energy Storage (A-CAES) technology and will leverage several unique features of the Perilya Potosi Mine Site, including:

• Very hard and impermeable metamorphic rock at the mine site;
• Existing underground mine development, providing access to construct the underground cavern at optimal depth of approximately 600m below ground;
• Existing mine support infrastructure, facilitating the construction of the project.

Martin Becker, Hydrostor’s Vice President of Business Development and Origination in Australia said “Hydrostor is excited to partner with Perilya on this unique and critical infrastructure project. Silver City is our first Australian project and will be a showcase for A-CAES technology in the future”.

The agreement includes access to property transactions and existing mine infrastructure, provision of construction support services, and supports the continued and longer-term operation of the Potosi Mine during and after the Project is being constructed.

Bruce Byrne, Chief Operating Officer of Perilya Broken Hill Limited said “The project will realise additional value to an important asset, well after the current developed stopes are completely mined”.

Paul Rasmussen, Hydrostor’s Vice-President of Integration said “By leveraging the existing mine investment and infrastructure, this partnership enables us to improve project delivery timeframe, since we can build the underground air storage cavern much faster, with reduced setup costs and a better understanding of the geology at site”.

This is a unique agreement in the Mining and Energy sectors and supports an important multiple land use outcome, allowing the Potosi Mine and the SCES Project to co-exist and benefit from each other.

The SCES Project represents a game changing outcome for mining in Broken Hill and the wider region. It leverages and enhances mining investment, both during and beyond the life of the mine, and as a post closure mining land use, it is currently unmatched in its value, contribution and benefit to the region and state.

The range of benefits to the local region include:

• Significant employment, skills, and training opportunities including 750 direct and indirect jobs during construction and 70 ongoing jobs in operation.
• A contribution of over AUD$1B to the regional economy.
• Opportunities for local suppliers, contractors, and service providers.

The SCES Project has been selected by Transgrid as the preferred solution to provide backup power for Broken Hill and the Far West region of NSW. The Project will provide reliable backup power for both the town and existing or new mining activities in the region.

The Project is supported by the NSW Government under the Emerging Energy Program and by the Federal Government via a grant from the Australian Renewable Energy Agency (ARENA).

About Perilya Broken Hill Limited

Perilya is an Australian base and precious metals mining and exploration company, which owns and operates the iconic Broken Hill zinc, lead, silver mine in NSW Australia and Cerro de Maimón copper, gold & silver mine in the Dominican Republic.

The Company’s operations at Broken Hill have a life of mine plan extending approximately 10 years. In addition to its mining operations, the Company has an active exploration and development program which includes exploration and development programs in the Broken Hill region NSW Australia and in the Flinders region of South Australia in the vicinity of its Beltana zinc silicate project.

The Company also has extensive exploration programs underway in the Dominican Republic with highly prospective copper, gold & silver targets near its Cerro de Maimón mine. Perilya is owned by Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd, one of China’s largest zinc producer.

About Silver City Energy Storage

The Silver City Energy Storage (“Silver City”) Project is an Advanced Compressed Air Energy Storage project capable of 200 MW generation for 8 hours duration (1600MWh). Reserve capacity of 250MWh is set aside to provide backup power during network outages. The project is located adjacent the Perilya Potosi Mine in Broken Hill, New South Wales, Australia.

Silver City will operate as a large energy storage asset, connected to the NSW grid and able to trade large quantities of energy on a daily basis. It will also act as an emission-free long-term grid reliability solution for Broken Hill and the wider region, supporting existing and new renewable energy generation, and serving communities and mining loads in the most cost-effective manner.

This Project received development funding from the NSW Government under the Emerging Energy Opportunities Program and project funding from the Australian Renewable Energy Agency (ARENA) as part of ARENA’s Advancing Renewables Program.