Denison Gas is set to transform the energy storage landscape in Australia by progressing the nation’s first Compressed Air Energy Storage (CAES) project to repurpose a depleted gas field in Queensland’s Bowen Basin.
This initiative aims to deliver a 600 MW, 12-hour long-duration storage facility, leveraging both existing gas infrastructure and the region’s unique geological features.
CAES technology works by using surplus renewable energy to compress air into underground reservoirs — here, the depleted gas field — effectively storing energy for later use.
When demand rises, the stored air is released to drive turbines and generate electricity, providing a flexible and reliable solution to the intermittency challenges posed by renewables.
By utilising well-sealed, porous sandstone reservoirs, Denison’s approach not only extends the life of legacy gas assets but also avoids the environmental and economic costs of field rehabilitation.
Engineering studies indicate the selected Bowen Basin reservoir can support the ambitious 600 MW/7.2 GWh facility, capable of delivering 12 hours of continuous power.
The project will begin with a 5–10 MW pilot to demonstrate technical feasibility and manage potential risks before scaling up to full capacity.
If successful, this model could be replicated across other suitable gas fields, accelerating Australia’s clean energy transition.
Denison’s CAES project aligns with the Queensland government’s strategy to achieve net zero emissions by integrating fossil fuel generation with targeted renewable projects, ensuring grid reliability while reducing carbon intensity.
The project has drawn strong interest from industry, investors, and regulators, particularly following a recent presentation by Denison Gas Executive Chairman Dr Xingjin Wang at the Australian Energy Producers Conference, and a detailed concept paper published in the Australian Energy Producers Journal.
Environmental assessments and stakeholder consultations will be undertaken in compliance with federal and state requirements to minimise impacts and ensure project sustainability.
Denison is actively engaging with the Queensland Government to establish a regulatory framework for CAES in depleted gas reservoirs and secure long-term tenure for the facility.
By repurposing existing assets for large-scale, long-duration energy storage, Denison Gas is positioning itself at the forefront of Australia’s energy transition, supporting a cleaner and more reliable power grid for Queensland and beyond.
