AGL and Hillgrove Resources have confirmed it will not proceed with a proposed pumped hydro energy storage (PHES) project at the Kanmantoo copper mine in South Australia.

AGL’s Executive General Manager of Wholesale Markets, Richard Wrightson, said Hillgrove and AGL could not reach agreement on a way forward to progress the project.

“The signing was the start of a multiple stage process to progress the project and the agreements were subject to a number of conditions which needed to be satisfied within specified timeframes,” Mr Wrightson said.

“As a result, Hillgrove and AGL have mutually agreed to terminate the PHES Project Agreement without any ongoing obligation on either party.”

Mr Wrightson said AGL remains committed to continuing the development of energy storage projects such as pumped hydro and batteries to provide firming capacity to the market.

“We have announced a number of storage projects to provide the firming capacity the market needs, such as the 100MW Wandoan battery with Vena Energy in Queensland, a 30MW battery with ElectraNet in South Australia, and four 50MW batteries to be built by Maoneng Group in NSW,” Mr Wrightson said.

“We’re also looking at the feasibility of a pumped hydro plant at Bells Mountain in NSW, which if progressed will provide more than 250MW of new storage capacity, and we’re working with the NSW Government on a proposal to build a 50MW battery at Broken Hill.”

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