Hydrostor and Perilya will 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, New South Wales, which will continue to operate as normal.
The Silver City Project 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; and existing mine support infrastructure, facilitating the construction of the project.
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.”
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.
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.
It 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 Silver City Energy Storage
The Silver City Energy Storage Project is an Advanced Compressed Air Energy Storage project capable of 200 MW generation for eight 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.
To learn more, visit https://www.silvercityenergystorage.com/
