BROKEN HILL, AUSTRALIA, Dec. 07, 2023 (GLOBE NEWSWIRE) -- Hydrostor, a global long duration energy storage (LDES) developer and operator, has reached an Agreement with Transgrid, which will see the 200MW/1600MWh Silver City Energy Storage Project (Silver City) provide back-up power to Broken Hill as early as 2027.
A first of its kind energy storage project for Australia, Silver City 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.”
Transgrid’s selection was based on an assessment of multiple energy storage solutions, determining that Silver City offered the highest net benefit and reliable clean energy supply for the region. The report concluded that Silver City would deliver approximately $286 million in net benefits over the 27-year assessment period.
“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,” added Jordan Cole, Hydrostor’s Chief Commercial Officer. “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”.
The Agreement requires Hydrostor to provide up to 50MW of capacity, representing up to 250MWh, from Silver City in the event of a planned or unplanned power outage. In September, Hydrostor announced a binding agreement with Perilya, who own 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.
About Silver City Energy Storage
The Silver City Energy Storage (“Silver City”) is an Advanced Compressed Air Energy Storage project capable of 200MW generation for 8 hours duration (1600MWh). Reserve capacity of 250MWh is set aside to provide backup power during network outages. The project is located adjacent the Potosi Mine in Broken Hill, New South Wales, Australia.
Silver City will operate as a large energy storage asset, connected to the NSW grid and able to trade large quantities of energy on a daily basis. It will also act as an emission-free, long-term grid reliability solution for Broken Hill and the wider region, supporting existing and new renewable energy generation, and serving communities and mining loads in the most cost-effective manner.
This Project received development funding from the NSW Government under the Emerging Energy Opportunities Program and project funding from the Australian Renewable Energy Agency (ARENA) as part of ARENA’s Advancing Renewables Program.
To learn more, visit https://www.silvercityenergystorage.com/
About Hydrostor Inc.
Hydrostor is a leading global developer and operator of long-duration energy storage systems. Hydrostor leverages a proven technology solution for delivering long-duration energy storage (eight hours or more) to power grids around the world. Hydrostor’s technology uses compressed air and water to store energy. This patented technology allows grid operators to draw on clean energy, even when there is no sun to fuel solar panels and no wind to generate energy from turbines.
Hydrostor has a successful utility scale facility commercially contracted to the Independent Electricity System Operator (IESO) located in Goderich, Ontario, and two advanced projects under development in Kern County, California and New South Wales, Australia. Hydrostor has an extensive early-stage pipeline of projects in North America, Australia and Europe.
Founded in 2010 and with headquarters in Toronto, Canada and offices in Melbourne, Australia and Denver, Colorado, USA, Hydrostor is backed by Goldman Sachs Asset Management, the Canada Pension Plan Investment Board (CPPIB) and other forward-thinking institutional investors, providing financial security to commit to top-tier energy projects.
To learn more, visit https://www.hydrostor.ca/
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