An old Broken Hill mine site is set to be transformed into a first-of-its-kind compressed air energy storage system, delivering energy security, jobs and investment to the city.
The NSW Government this week provided planning approval for Hydrostor’s compressed air energy storage system with a capacity of 200 megawatts (MW) / 1,600 MW-hours (MWh). The Government says the Silver City Energy Storage Centre could power about 80,000 homes in peak demand and will maintain a reserve capacity of 250 MWh to provide back-up to Broken Hill during times of planned and unplanned outages.
The project is the first-of-its-kind in Australia, utilising advanced technology that uses compressed air to store energy and generate electricity, without producing greenhouse gases.
The $638 million project looks set to boost the local economy, creating up to 400 full-time construction jobs and around 26 ongoing operational jobs.
Broken Hill City Council will receive $3.1 million under a Voluntary Planning Agreement, paid over five years, to benefit the local community.
Mayor, Tom Kennedy said Broken Hill would benefit greatly from the project moving forward.
“This project will provide jobs and growth for Broken Hill, along with stability for our electricity network,” he said.
“The development of major projects like this along with other mining ventures on the horizon should ensure Broken Hill prospers well into the future.”
During periods of low-energy demand, excess electricity will be used to compress air and store 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.
The project will be supported by a 65-year government lease on a Crown land site near the Potosi mine at Broken Hill.
The energy storage system will support different renewable energy sources in the region to reliably power homes and businesses in and around Broken Hill.
“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 in times of planned and unplanned outages,” said NSW Minister for Climate Change and Energy, Penny Sharpe.
“Energy storage solutions like this will go a long way to preventing blackouts like the ones the Far West experienced last year.
“The project will provide construction and ongoing jobs, and will put Broken Hill on the map as a nation leader in renewable energy.”
With work expected to start this year, it is estimated construction of the project will take three to four years.
For more information visit Silver City Energy Storage System | Planning Portal – Department of Planning and Environment.
