ENERGY STORAGE

Hydrostor & Transgrid enter storage agreement for Australian Silver City project

December 11, 2023

Long duration energy storage developer and operator Hydrostor has reached an agreement with Transgrid that will see Hydrostor’s 200MW/1,600 MWh Silver City Energy Storage Project provide back-up power to the city of Broken Hill in New South Wales, Australia as early as 2027.

The agreement requires Hydrostor to provide up to 50 MW of capacity, representing up to 250 MWh, from Silver City “in the event of a planned or unplanned power outage”, a Hydrostor statement said.

In September, Hydrostor announced a binding agreement with Perilya, who owns a local mining operation, to integrate Silver City’s advanced compressed air energy storage (A-CAES) technology with existing underground caverns at the Potosi Mine.

Hydrostor says the Silver City project will bring significant economic benefits to the region, contributing an estimated $1 billion to the local economy alongside significant employment, skills, and training opportunities, including 750 direct and indirect jobs during construction and 70 ongoing jobs once in operation.

The agreement between Transgrid and Hydrostor (through its Australian subsidiary A-CAES NSW PTY LTD.) was signed following Silver City being selected as the preferred option in Transgrid’s Project Assessment Conclusions Report (PACR).

“We are delighted by this new partnership with Transgrid and the recognition of Silver City’s value to the region and the community”, said Martin Becker, Hydrostor’s VP, origination & development. “This is another significant milestone in the development of this critical infrastructure project that will ensure the delivery of clean power and energy security to the Broken Hill region.”

Jordan Cole, Hydrostor’s chief commercial officer, said: “Beyond the clear decarbonisation and economic benefits of the project, we are pleased to see that the Broken Hill community is excited to be part of a ground-breaking project which will keep the lights on. Advanced compressed air energy storage represents a scalable, cost-effective solution for the provision of long duration energy storage. We look forward to progressing this essential infrastructure project that ensures clean energy is accessible when needed”.