Major Win for Compressed Air Energy Storage as Hydrostor Is Awarded 200 MW Long-Term Energy Service Agreement

First-of-its-kind energy storage project in Australia to provide critical energy stability for NSW

BROKEN HILL, AUSTRALIA, Dec. 18, 2023 (GLOBE NEWSWIRE) — Hydrostor, a global long duration energy storage (LDES) developer and operator, has been awarded a Long-Term Energy Service Agreement (LTESA) by AEMO Services, as part of the New South Wales (NSW) government Electricity Infrastructure Roadmap, for its Silver City Energy Storage project (Silver City) in Broken Hill.

The announcement marks a significant step forward for Australia’s clean energy transition and demonstrates the critical role that long duration energy storage will play in providing affordable, reliable, and emission-free electricity to power homes and businesses.

“We are delighted to be awarded this LTESA, which is a big vote of confidence in not only long duration energy storage, but also our compressed air solution as a key technology pathway for decarbonisation and grid reliability across Australia” said Curtis VanWalleghem, CEO of Hydrostor.

“This provides a model for getting much-needed firming capacity into Australian electricity markets, and we applaud the innovative leadership shown by the NSW Government and AEMO Services to support the development of clean and flexible power resources.”

Martin Becker, Hydrostor’s Vice President of Business Development and Origination in Australia said, “Having reached this critical milestone, we are looking forward to progressing the permitting for our Silver City project and building on local partnerships in Broken Hill.  We are excited to help contribute to the shared prosperity of the region through jobs and clean, reliable energy.”

A first-of-its-kind energy storage project for Australia, the LTESA contract demonstrates the important capabilities of Hydrostor’s Advanced Compressed Air Energy Storage (A-CAES) technology, which will be deployed at Silver City to provide 200 MW of renewable energy storage for up to eight hours.

The Silver City project will bring significant 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.

Hydrostor is developing a growing pipeline of large-scale projects across the world and when completed, Silver City will be one of the largest A-CAES facilities globally.

LTESA’s provide an important policy framework to encourage investment in large energy infrastructure projects such as Silver City that directly benefit NSW residents and are a key part of the NSW Government’s Electricity Infrastructure Investment Safeguard.

Please see AEMO Services release here: NSW Roadmap tenders delivering real progress to transforming our energy system (aemoservices.com.au)

Please see the NSW Minister for Energy, Penny Sharpe’s, release here: NSW secures more renewable energy projects | NSW Government

About Silver City Energy Storage Centre

The Silver City Energy Storage (“Silver City”) is an Advanced Compressed Air Energy Storage project capable of 200 MW generation for 8 hours duration (1,600 MWh). The Project was recently selected by Transgrid as the preferred solution to provide back up for the town and Far West region of NSW. Reserve capacity of 250 MWh is set aside to provide backup power during network outages. The project is located adjacent the Perilya 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. Silver City will serve as a replacement for diesel-fired generation and an alternative to costly new transmission.

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 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 an office in Melbourne, Australia, 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/

Follow us on LinkedIn