An old Broken Hill mine site will soon be transformed into a first-of-its-kind compressed air energy storage system, delivering energy security, jobs, and investment to the area.
The New South Wales Government has provided planning approval for Hydrostor’s compressed air energy storage system, which has a capacity of 200 megawatts (MW) / 1,600 MW-hours (MWh).
“The city needs a reliable supply of power, and this project will provide certainty and reliability for local residents and businesses,” Minister for Planning and Public Spaces, Paul Scully, said.
“The NSW Government is working with proponents to see industrial sites rehabilitated and renewed for future use.”
The Silver City Energy Storage Centre could power about 80,000 homes in peak demand. It will maintain a reserve capacity of 250 MWh to provide back-up to Broken Hill during planned and unplanned outages.
“Hydrostor’s Silver City Energy Storage Centre boosts the reliability of the NSW electricity grid and provides back-up for homes and businesses in the state’s far west during planned and unplanned outages,” Minister for Climate Change and Energy, Penny Sharpe, said.
The project is the first of its kind in Australia. It utilises advanced technology that uses compressed air to store energy and generate electricity without producing greenhouse gases.
“This technology supports our transition to cleaner energy sources and promotes economic growth through job creation in the energy sector,” Mr Scully said.
The $638 million project will boost the local economy, creating up to 400 full-time construction jobs and around 26 ongoing operational jobs.
During periods of low energy demand, excess electricity compresses air and stores it in large underground caverns or tanks.
When energy demand is high, the compressed air is released, heated and expanded through turbines to generate electricity.
A 65-year government lease on Crown land near the Potosi mine at Broken Hill will support the project.
“It’s fantastic to see planning approval confirmed for the Hydrostor project, which a 65-year government lease on a Crown land site near Broken Hill will further support,” Minister for Lands and Property, Steve Kamper, said.
“The Silver City Energy Storage Facility will be the first of its kind for Australia, generating both vital back-up energy for Broken Hill and significant ongoing jobs and investment spending for the Far West economy.”
The energy storage system will support different renewable energy sources in the region, reliably powering homes and businesses in and around Broken Hill.
“Energy storage solutions like this will go a long way to preventing blackouts like the ones the Far West experienced last year,” Ms Sharpe said.
“The project will provide construction and ongoing jobs and put Broken Hill on the map as a nation leader in renewable energy.”
Broken Hill City Council will receive $3.1 million under a Voluntary Planning Agreement, paid over five years.
Work is expected to start this year, and construction of the project is estimated to take three to four years.
For more information, visit Silver City Energy Storage System | Planning Portal – Department of Planning and Environment
