ARENA to fund 200-MW Hydrostor energy storage project in NSW

The Australian Renewable Energy Agency (ARENA) has pledged to provide funding for the construction of a 200-MW/1,600-MWh Advanced Compressed Air Energy Storage (A-CAES) facility at a disused mine in New South Wales to provide at least eight hours of storage.

The project was developed by Canadian long-duration energy storage specialist Hydrostor Inc. The firm will receive AUD 45 million (USD 28.2m/EUR 28.8m) in grant funding from ARENA once the scheme achieves financial close, the Aussie agency said on Friday.

The fuel-free energy storage system is set to become one of the largest compressed air facilities globally. Hydrostor is expected to secure all needed funds for its construction in late 2023. The estimated cost stands at AUD 652 million, which includes the repurposing of the disused mine and the design of a special cavity for storing the compressed air.

Dubbed the Silver City Energy Storage Project, the system will compress air when electricity prices are low and store it for subsequent release during periods of high prices and increased demand. The technology to be used is an alternative to pumped hydro storage energy.

Once in operation, the system will provide back-up power supply for the city of Broken Hill.

“Whether it be through pumped hydro, or innovative solutions like compressed air storage, medium and long duration storage is going to be vital to supplying power during the evening and morning peak-demand periods as Australia looks towards achieving 82% renewable energy by 2030,” said ARENA’s CEO Darren Miller.

(AUD 1.0 = USD 0.626/EUR 0.641)

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