Yunnan Energy Investment to Build Air Energy Storage Power Generation Project with a Total Investment of 1.8 Billion Yuan

In order to implement the national dual carbon goals, give full play to the advantages of both parties, actively implement the national and Yunnan provincial energy development strategies, promote the development and utilization of Kunming salt mine salt cave resources, improve the energy structure, and promote economic and social development, in accordance with the "Civil Code of the People's Republic of China" and relevant laws and regulations, on the principles of equality, voluntariness, mutual benefit and mutual benefit, after friendly consultation, Yunnan Energy Investment Co., Ltd. (hereinafter referred to as the "Company") and Anning Municipal People's Government signed the "Kunming Anning Air Energy Storage Power Generation Project Investment Agreement" in Anning on November 24, 2023.

Main contents of the agreement

Party A: Anning Municipal People's Government

Party B: Yunnan Energy Investment Co., Ltd.

1.1 Project Name: Kunming Anning Air Energy Storage Power Generation Project

1.2 Project Investor: Yunnan Energy Investment Co., Ltd.

1.3 Project investment scale: The total investment of the project is about RMB 1.8 billion, of which fixed asset investment is about RMB 1.6 billion. (Unless otherwise specified in this Agreement, all refer to RMB, the same below). Party B is responsible for self-raising the investment funds and ensuring the legality of the source of self-raised investment funds (the same below).

1.4 Main contents and scale of the project construction: Party B intends to use the salt caverns of its salt mine to build the Kunming Anning air energy storage power generation project, and use the retired salt caverns of the Kunming Salt Mine as the gas storage cavity. The ground system intends to install a 300MW compression and power generation system, as well as related ancillary facilities.

1.5 Project construction period and progress: The total construction period of the project is about 24 months, and the operation period after the project is put into production is 40 years. It is planned to start the project construction in 2024 and officially complete the completion and put into operation before December 2026 (the start time is subject to the actual start time of construction).

1.6 After the project is put into operation, the annual main business income is expected to reach more than 145 million yuan, the annual power generation will be about 500 million kWh, the annual tax payment will be more than 6 million yuan, and it can provide employment for about 60 local people.