Funding boost for Australia’s first compressed air energy storage system

LinkedIn
Twitter
Reddit
Facebook
Email
How the Angas CAES project will look above ground. Source: Hydrostor.

The Australian Renewable Energy Agency (ARENA) has approved A$6 million of funding for the country’s first compress air energy storage (CAES) project.

US-firm Hydrostor will convert a disused zinc mine in South Australia into a below-ground air-storage cavern. The 5MW /10MWh demonstration plant will provide load shifting, frequency regulation and grid security. The Angas mine is currently a brownfield site in a state of “care and maintenance”. The company had been looking for a site in Australia since summer 2017.

The latest funds add to A$3 million it has received from the South Australian Government’s Renewable Energy Technology Fund.

“While being a commercial demonstration at this stage, Hydrostor’s innovative way to store energy with air could add to Australia’s grid-scale storage capability, complementing pumped hydro and batteries,” said Darren Miller, CEO, ARENA.

This article requires Premium SubscriptionBasic (FREE) Subscription

Enjoy 12 months of exclusive analysis

Not ready to commit yet?
  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Annual digital subscription to the PV Tech Power journal
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

“Compressed air storage has the potential to provide similar benefits to pumped hydro energy storage, however it has the added benefits of being flexible with location and topography, such as utilising a cavern already created at a disused mine site,” added Miller.

South Australia has become a hotbed for emerging energy storage technologies. A major blackout event in the territory in 2016 exposed the grid’s unsuitability for a modern power generation mix. Since then, the Tesla “100 days” battery install, lithium battery trials and the world’s largest virtual power plant have all been deployed.

Read Next

Premium
September 15, 2025
China again dominated global battery storage deployments in August, accounting for two-thirds of what came online, but Europe, North America and Oceania/Australia had good months too.
September 15, 2025
Hithium will supply battery storage and SMA the power conversion systems for a 500MWh grid-forming project in Australia for Fotowatio Renewable Ventures (FRV).
September 9, 2025
Emerging tech must prove it can outcompete the incumbent, writes Sightline Climate analyst Lukas Karapin-Springorum, outlining the state of play in LDES technology today.
September 9, 2025
“Social licensing is the next frontier for battery energy storage systems,” said Matt Baumgurtel, partner, new energy lead at Hamilton Locke.
Premium
September 9, 2025
Andrés Barberán, energy storage product manager at Fluence, emphasises that optimising battery energy storage system (BESS) performance means making decisions with the entire asset lifecycle in mind, not just immediate returns.

Most Popular

Email Newsletter