Update 28 April 2026: Hydrostor reached out to clarify some of the conditions detailed below and provided a statement from SVP of origination and development Martin Becker:
We welcome the conclusion of this process and the clarity it has provided.
The outcome, achieved through conciliation and agreed to by all parties, involves minor adjustments to the existing development consent relating to light and noise monitoring. We are pleased to provide these additional enhancements that are in line with our broader commitment to ensuring this project has a positive impact on the community and co-exists with local households and businesses.
Importantly, the adjustments do not alter the overall scope, purpose, or strategic significance of the development are publicly available.
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Community engagement remains a crucial part of the development process for the Silver City Energy Storage Centre and this will of course involve ongoing consultation with all neighbours to ensure we meet the strict regulatory requirements.
With this process now complete, we look forward to progressing towards financial close and building a project that makes a significant long-term contribution the local economy and community, as well as the energy system.
The Land and Environment Court of New South Wales, Australia, has upheld an appeal regarding Hydrostor’s 1.6GWh advanced compressed air energy storage (A-CAES) project.
Hydrostor’s Silver City Energy Storage System in New South Wales (NSW) is a 200MW/1,600MWh (8-hour duration) facility based on the Canadian company’s proprietary A-CAES technology, which Hydrostor claims is more efficient and environmentally-friendly than conventional compressed air storage.
Late last month (25 March), the court, which hears environmental, development, building and planning disputes, ruled to uphold the appeal by Outback Astronomy, a local tourism operator on the potential light and noise impacts of Silver City.
The project’s development has not been stopped, but the Land and Environment Court placed amended consent conditions that include the following:
- The conditions require Hydrostor to inform the community of progress and performance against the Development Agreement (DA) throughout Silver City’s development. Hydrostor is required to consult on the development of the two new management plans required.
- Hydrostor must demonstrate compliance with operational light compliance 12 months after operations commence and noise compliance up to three years after the start of operations to Outback Astronomy.
- Conditions in the DA must be complied with for the lifetime of the plant and reported to the NSW Department of Planning, Housing and Infrastructure (DPHI) over its 50 years of operation.
Outback Astronomy’s owners, Travis and Linda Nadge, who brought the appeal, said their stargazing business is “uniquely dependent on natural darkness and quiet” in a blog post after the ruling.
See the full Land and Environment Court ruling. Hat-tip to regional news outlet Back Country Bulletin’s reporting this week for drawing this story to our attention.
Silver City recognised as state significant development for NSW
Silver City will be built at an existing mining site in the historic Broken Hill mining region and has been recognised by the NSW government as a state significant project.
It also received AU$45 million funding from the Australian Renewable Energy Agency (ARENA) toward its total AU$652.26 million expected cost as a demonstration of A-CAES as an emissions-free storage technology without the same land and topography constraints as pumped hydro.
Hydrostor, which is also developing a 4GWh A-CAES project in California, US, and another of similar scale in Ontario, Canada, received development approval for Silver City in February 2025.
It also has a Network Service Agreement in place for the NSW facility with transmission operator Transgrid and a Long-Term Service Agreement (LTSA) with AEMO Services.
The Canadian company secured a US$200 million investment commitment from investors, including Goldman Sachs Alternatives, in early 2025, following Goldman Sachs previously making a US$250 million pledge to invest in Hydrostor in 2022. It also netted an additional US$55 million in funding towards Silver City from Export Development Canada (EDC) in September 2025.
This article has been amended from its original form to reflect the more ruling and conditions more accurately.
