Leyshon Resources Limited Mt Leyshon Peak Demand Power Project Concept Study (2810I)
May 29 2014 - 2:01AM
UK Regulatory
TIDMLRL
RNS Number : 2810I
Leyshon Resources Limited
29 May 2014
LEYSHON RESOURCES
29 MAY 2014
MT LEYSHON PEAK DEMAND POWER PROJECT CONCEPT STUDY
Highlights
-- The Company has recently commissioned a study indicating that
Queensland will require new power generation capacity as early as
2017, with peak electricity demand forecast to grow at more than
three percent per annum over the next decade
-- Taking advantage of the existing reservoirs on site, the
study indicates that a Pumped Storage Hydro Power Station of
approximately 20-40 megawatts could be developed at Mt Leyshon, at
a cost more favourable than competing alternatives and with the
operating flexibility to generate electricity almost
instantaneously to meet peak electricity demand
-- The project is similar to other highly successful pumped
storage schemes around the world and is considered to be one of the
first to capitalize on existing mine site infrastructure
-- The Company will be approaching potential strategic partners
that can bring off-take or development synergies to the project
Leyshon Resources Limited (AIM/ASX: LRL) ("Leyshon" or the
"Company") is pleased to announce the completion of a study into
pumped storage hydro ("PSH") power generation at Mt Leyshon. The
high level study is part of broader strategic review which includes
assessing the reprocessing of the mill scats and the historical
exploration data.
The concept involves generating near-instantaneous electrical
power and supplying it into the grid at times of peak power demand
by releasing water from the existing upper reservoir through a
hydro generation plant. The upper reservoir is refilled from the
existing open pit during periods of off-peak prices.
The Australian Energy Market Operator forecasts that new
generation capacity will be required in Queensland by 2020 in order
to maintain supply reliability within the National Electricity
Market Reliability Standard. Under a high growth scenario, this
requirement for new capacity may be as early as 2017.
The optimal project sizing based on the physical reservoir
characteristics is estimated to be around 40 megawatts ("MW"). The
existing power line infrastructure connected to the site supports a
project of up to 20MW and with modest upgrades may support up to
40MW.
The unit cost of production for a 20-40MW PSH plant at the Mt
Leyshon site compares favourably to the cost of a larger-scale
open-cycle gas turbine project, the assumed next best alternative
for providing fast-start peak to intermediate generation capacity
(i.e. a capacity factor of up to 30-40%.).
Whilst the study demonstrated positive project economics,
further work will be required in areas including water chemistry,
capital and operating cost estimates, networks, engineering, and
regulatory.
The report recommended identifying a strategic partner to assist
with managing market risk and underpinning the commercial viability
of the project by securing either a medium to long-term off-take
with an electricity retailer or major energy user, or a medium to
long-term network support contract with the local network service
provider.
For further information please contact:
Leyshon Resources Limited
Corey Nolan - Managing Director
Tel: +61 7 3221 7770
admin@leyshonresources.com
Cantor Fitzgerald Europe
David Porter/Rick Thompson (Nominated Adviser)
Richard Redmayne (Corporate broking)
Tel: +44 (0)207 894 7000
http://www.leyshonresources.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCGMGZKVRNGDZM
Leyshon Resources (LSE:LRL)
Historical Stock Chart
From May 2024 to Jun 2024
Leyshon Resources (LSE:LRL)
Historical Stock Chart
From Jun 2023 to Jun 2024