Benzinga | Jan 21, 2022 07:12AM EST

Iris Energy Reports Execution Of 600MW Connection Deal With AEP Texas; Co. Receives $19M Security Deposit

Highlights

* 600MW binding connection agreement executed with AEP Texas and $19m security deposit and connection fee paid

* Power capacity expected to increase from 165MW (4.6 EH/s) to 765MW (~22 EH/s1) 15.2 EH/s (~530MW) of miners previously secured; and ~7 EH/s1 (~235MW) of potential additional capacity

* ~22 EH/s1 would represent >10%2 of the total global network hashrate if operating today

* >300 acre freehold site (100% owned), with direct grid access located in the renewables heavy Panhandle region of Texas, USA

* Electrical connection expected to be completed during Q1 2023

* 15.2 EH/s execution plan now clear 4.6 EH/s (165MW) - operating and under construction (BC, Canada) 10.6 EH/s (365MW) - procurement and construction activities underway (Texas) 3.0 EH/s (100MW) targeted for 20223 7.6 EH/s (265MW) targeted for 2023

SYDNEY, Australia, Jan. 21, 2022 (GLOBE NEWSWIRE) -- Iris Energy Limited (NASDAQ:IREN) ("Iris Energy" or "the Company"), a leading sustainable Bitcoin miner with 15.2 EH/s of secured miners, today announced its wholly owned subsidiary has executed a binding connection agreement with AEP Texas Inc. ("AEP Texas", a subsidiary of AEP) for a new 600MW specialized data center site in the renewables heavy Panhandle region of Texas, USA.

The agreement with AEP Texas is to connect into a 345kV transmission line running directly through the >300 acre freehold site (100% owned). Key utilities are located in close proximity to the site boundary, including high speed fiber.

The new 600MW site is transformational and expected to increase the Company's power capacity from 165MW (4.6 EH/s) to 765MW (~22 EH/s1), supporting:

* 15.2 EH/s (~530MW) of miners previously secured; and

* ~7 EH/s1 (~235MW) of potential additional capacity.

22 EH/s1 would represent >10%2 of the total global network hashrate if operating today.

The Company now has a clear execution plan for its 15.2 EH/s of secured miners at 100% owned and operated data center facilities.

Importantly, the Company's entry into the renewables heavy Panhandle region of Texas is consistent with its stated strategy of targeting markets with abundant and/or under-utilized renewable energy and provides potential opportunities to support the local energy market through the provision of flexible load, demand response and other ancillary services.

Site Overview Capacity Capacity Timing Status (MW) (EH/s)Canal Flats (BC, Canada) 30 0.7 Complete OperatingMackenzie (BC, Canada) 50 1.5 Q2-Q3 2022 Under constructionPrince George (BC, Canada) 50 1.4 Q3 2022 Under construction 35 1.0 2023 Under constructionPanhandle (Texas, USA) 100 3.0 Q4 20223 Under construction 265 7.6 2023 Under constructionTotal (miners secured) 530 15.2 Panhandle (Texas, USA) 235 ~71 Potential capacityTotal (potential expansion) 765 ~221

Iris Energy is currently working with global partners on the design, procurement and construction of the Texas facility, with the electrical connection expected to be completed during Q1 2023. Additional miners may be procured in due course to utilize the potential 235MW of surplus capacity at this site.

The project is expected to employ up to 50 personnel when fully operational and approximately 100 personnel during construction. The local Texas county is expected to benefit from the flow on effects of both operations and construction, including Iris Energy's policy of purchasing locally where it makes sense to do so.

The Company has a number of additional sites (all targeting abundant and/or under-utilized renewable energy) in Canada, USA and Asia-Pacific under varying stages of site due diligence, design & engineering, and electrical connection submissions. Further details will be provided in due course, including as and when any development sites transition to the construction phase.

About Iris Energy

Iris Energy is a sustainable Bitcoin mining company that supports local communities, as well as the decarbonization of energy markets and the global Bitcoin network.

* Focus on low-cost renewables: Iris Energy targets entry into regions where there are low-cost, abundant and attractive renewable energy sources, and where the Company can support local communities

* Long-term security over infrastructure, land and power supply: Iris Energy owns its electrical infrastructure and data centers, providing security and operational control over its assets. Iris Energy also focuses on grid-connected power access which helps to ensure it is able to utilize a reliable, long-term supply of power

* Seasoned management team: Iris Energy's team has an impressive track record of success across energy, infrastructure, renewables, finance, digital assets and data centers