Quarterly Activity Report and App 5B

Thermal Long

"…At Macroeconomics Advisory, we have estimated that the cost of

Duration Energy

replacing existing thermal power with solar and wind and back-up

governments/taxpayers.

will be in excess of $150 billion. That impost is likely to be borne by

Storage

But there is a way to avoid most of these transition costs and perhaps

restore some of our old manufacturing base sourcing cheap, emissions-

free, reliable energy.

The thermal option

One little known option that is apparently ready to go is long-term thermal

storage. It is a scalable and compact way of storing energy that provides

relatively cheap, very-long-durationback-up for intermittent systems. Even

better, it is a leading-edgeAustralian-based technology.

The technology sources flake graphite locally to manufacture energy

storage blocks that are fitted within energy storage cells. The critical

breakthrough is that these cells operate at a very high operating

temperature range with virtually unlimited cycles and can be charged

and discharged simultaneously.

This unique capability enables them to drive the large-scale turbines used in

coal-fired power stations. Heating cells with solar and wind generation and

then using this heat to drive these turbines means it can deliver dispatchable

power through the existing infrastructure in the Hunter and La Trobe valleys.

The technology fits Angus Taylor's far-sighted plan to support

technologies even if the execution of the strategy is floundering.

Who would have thought risk-averse bureaucrats would use it to dole out

big dollars to foreign-sourced solar (including solar thermal), wind and

now, hydrogen?

Why not just back the thermal option that appears to require no assistance

whatsoever? It may just offer the good folks at the Energy Security Board the

level of energy security to allow them to sleep nights."

Dr. Stephen Anthony, Contributor

- Australian Financial Review, 28 March 2022

Dr. Anthony's comments follow Macroeconomics Advisory's study in

which it undertook an independent assessment of the requirements for

long duration energy storage (LDES) within the NEM as part of the AEMO

Net Zero by 2050 Plan. This study examines in detail the deployment of

large scale thermal LDES by retrofitting existing coal fired power stations

with TES technology. The findings in this study also form the basis for

Macroeconomics Advisory's submission to AEMO on 11 February 2022; see

Attachment 2 for study highlights.

Consolidated statement of cash flows

Current quarter

Year to date

$A'000

(12 months)

$A'000

2.2

Proceeds from the disposal of:

(a)

entities

-

-

(b)

tenements

-

-

(c) property, plant and equipment

-

-

(d)

investments

-

-

(e)

other non-current assets

-

-

2.3

Cash flows from loans to other entities

-

-

2.4

Dividends received (see note 3)

-

-

2.5

Other (provide details if material)

-

-

2.6

Net cash from / (used in) investing

(108)

(845)

activities

3.

Cash flows from financing activities

3.1

Proceeds from issues of equity securities

-

859

(excluding convertible debt securities)

3.2

Proceeds from issue of convertible debt

-

-

securities

3.3

Proceeds from exercise of options

-

-

3.4

Transaction costs related to issues of equity

-

(83)

securities or convertible debt securities

3.5

Proceeds from borrowings

-

1,262

3.6

Repayment of borrowings

-

-

3.7

Transaction costs related to loans and

-

(192)

borrowings

3.8

Dividends paid

-

-

3.9

Other (provide details if material)

-

-

3.10

Net cash from / (used in) financing

-

1,846

activities

4.1

Cash and cash equivalents at beginning of

1,305

1,236

period

4.2

Net cash from / (used in) operating

(193)

(1,233)

activities (item 1.9 above)

4.3

Net cash from / (used in) investing activities

(108)

(845)

(item 2.6 above)