The New South Wales Government has signed a 65-year lease with Hydrostor to enable the construction of an advanced compressed air energy storage site in Broken Hill to support the development of a mini grid and bolster energy security in the region.
The agreement between Hydrostor and Crown Lands, part of the Department of Planning, Housing and Infrastructure (DPHI), will pave the way for the development of the Silver City Energy Storage Centre, which is expected to deliver increased renewable energy generation into the city’s power grid and provide a reliable power source during outages in the local transmission system.
The facility will be based on Hydrostor’s advanced compressed air energy storage (A-CAES) technology, which uses compressed air to displace water from an underground storage cavity into an above ground water storage reservoir. During the compression cycle, heat is transferred and stored in above ground thermal tanks and the stored air is used to power air turbines to generate electricity.
Construction is expected to begin in 2025 following development approval with completion anticipated in 2028.
The Silver City Energy Storage Centre is set to be housed near the Potosi mine site, a Crown Lands site located on the Northeast outskirts of Broken Hill. It will have the capacity to generate 200MW of power, which can provide eight hours of storage when discharging at full capacity, and much longer durations at a lower output.
Hydrostor said it welcomed the support of the New South Wales Government for its mini grid concept, which would enable Silver City to draw from existing renewable energy infrastructure in the region to form a ‘closed circuit’, independent energy solution capable of supplying the entire town without needing connection to the National Electricity Market (NEM).
The implementation of this solution aims to protect Broken Hill from future outages and help protect against intermittency challenges in the region.
Once completed, the new energy storage facility is expected to replace certain ageing diesel fuelled turbines. The Silver City project also looks to increase the deployment of long-duration energy storage solutions to enable the transition toward a stable NEM.
It is estimated that the project will support up to 780 direct and indirect jobs throughout the construction phase.
New South Wales Minister for Climate Change and Energy, Penny Sharpe, said recent events in the Far West region of New South Wales have demonstrated the need for long duration storage to secure energy supply for Broken Hill and the Far West.
“This Silver City Energy Storage Facility is a solution that will make Broken Hill a renewable energy leader. The city will be generating, storing and distributing cleaner and more affordable energy to the Far West region and the rest of the state.
“This project will replace the older large-scale back-up diesel generator, preventing a repeat of the recent energy emergency in the Far West region of New South Wales.”
Hydrostor VP of Origination and Development, Martin Becker, said, “This is a major milestone in our journey toward realising an extremely important project, not just for Broken Hill, but for Australia.
“We look forward to delivering Silver City which is a critical missing piece in the state’s energy mix, and a much-needed solution for the region,” Mr Becker said.
“We want to thank the New South Wales Government for recognising the value of Silver City, long duration energy storage technology more broadly, and most importantly the potential for this project to protect the region’s energy through the establishment of a mini grid closed system in the event of outages.
“We are excited to deliver this project, which we are confident will benefit every member of the community.”
