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

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

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

June 5, 2026
Akaysha Energy’s Waratah Super Battery is now operating at 700MW and 1,680MWh following the successful return to service of High Voltage Transformer 2 (HVT2), the BlackRock-backed developer confirmed in a market update today (4 June).
June 5, 2026
Australia’s Victorian government has approved four new energy projects worth a combined AU$2.4 billion via its DFP, including 1,390MW of BESS.
June 4, 2026
Recharge Power, a Taiwanese battery energy storage system (BESS) developer and integrator, has signed a strategic cooperation agreement with Australian renewable energy developer Energy Decarb to establish a joint venture targeting the Australian solar PV and battery storage market.
June 3, 2026
Akaysha Energy’s 415MW/1,660MWh Orana BESS has reached full output, with the facility now listed as operating in Australia’s NEM.
June 3, 2026
Queensland Investment Corporation has opened a formal call for proposals under the state government’s AU$200 million North West Energy Fund.