A 250 megawatt pumped hydro project in the Hunter has received a $9.45 million funding boost from the NSW Government.
Energy Minister Matt Kean has announced five pumped hydro projects across NSW have received a share in $44.8 million to fund pre-investment work such as feasibility studies.
The Muswellbrook Pumped Hydro Project is one of the five projects to get funding under the government’s Pumped Hydro Recoverable Grants Program.
Energy giant AGL and Idemitsu Australia are working on the project which will be on the soon to be former Muswellbrook Coal site, owned by the Japanese energy company Idemitsu.
The funding they received today will enable the project to advance development studies to a stage that means the project is ready for investment.
The project has been in the works since 2019 when preliminary engineering studies began to determine whether or not the project was technically feasible.
The Grant funding will be used to complete a targeted geotechnical due diligence program, detailed design of the project, connection studies and contractor engagement. AGL and Idemitsu working together as Joint Venture will also undertake comprehensive Traditional Owner and community consultation to prepare the project for an investment decision.
AGL Chief Operating Officer, Markus Brokhof, welcomed the support of the NSW Government and said he was pleased to see the project progressing to the next stage.
“Today we’re announcing another step forward in planning for what could be a significant energy asset for the people of Australia and the Upper Hunter community,” he said.
“As we transition to more renewable energy sources, pumped hydro provides a reliable on-demand generation source and acceleration of our development studies will help us understand how the Project could be delivered.
“AGL has 2.9GW of wind, battery, pumped hydro and other low carbon and firming projects in active planning and development, and we will continue to look to invest is projects like Muswellbrook Pumped Hydro.”
Pumped hydro works by circulating water from the lower reservoir into an upper storage site, with the proposed Muswellbrook Pumped Hydro project exploring an innovative model whereby an existing mine void from Idemitsu’s Muswellbrook Coal mine acts as the lower reservoir. Upon demand, water is released from the upper storage site and uses gravity to turn turbines and generate electricity. This 250 megawatt project will provide eight hours of energy storage.