The New South Wales government has granted Critical State Significant Infrastructure status to the Muswellbrook Pumped Hydro project, a joint venture between AGL and Idemitsu Australia.
This designation underscores the project’s importance in the state’s energy transition and future grid stability.
The proposed 400 MW pumped hydro plant, located near Muswellbrook in the Hunter Central Coast Renewable Energy Zone, is designed to provide eight hours of energy storage.
This long-duration storage capability is expected to play a crucial role in supporting the NSW electricity grid, especially during periods of high energy demand.
Travis Hughes, AGL’s General Manager of Energy Hubs, highlighted the project’s significance: “The 400 MW Muswellbrook Pumped Hydro plant is expected to have a 100-year asset life and provide eight hours of energy storage. That’s four times the storage duration and five times the asset life of most current battery storage systems.”
The project utilises an innovative approach by repurposing an existing mine void from Idemitsu Australia’s Muswellbrook site as the lower reservoir.
Water will be pumped uphill to an upper storage reservoir during periods of excess energy from solar and wind sources.
When energy demand is high, the water will be released, using gravity to generate electricity through turbines.
Steve Kovac, CEO of Idemitsu Australia, emphasised the project’s potential benefits: “The Muswellbrook Pumped Hydro project will provide an on-demand source of energy generation. We believe this is critical to delivering renewable energy at lower prices and will benefit both the community and businesses.”
The project has received $9.45 million in funding from the NSW government’s Pumped Hydro Recoverable Grants Program.
It is expected to create 250 jobs during construction and 20 ongoing positions during operation, contributing to the economic development of the Hunter Valley region.
If advanced development studies are successful and the project receives final investment decisions and government approvals, the first generation is targeted for 2029.
This timeline aligns with Australia’s broader efforts to transition to renewable energy sources and strengthen its clean energy infrastructure.
The Muswellbrook Pumped Hydro project represents a significant step in Australia’s renewable energy future, demonstrating the potential for post-mining land use to create long-term value and support the country’s evolving energy needs.