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).

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