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Monday, Jan 05, 2026

Underground Compressed Air Energy Storage Facility Approved in Broken Hill

Underground Compressed Air Energy Storage Facility Approved in Broken Hill

The $638 million project aims to store energy using compressed air, supporting up to 80,000 homes during peak demand.
The New South Wales government has granted approval for a groundbreaking renewable energy project at a decommissioned mine near Broken Hill, a city in outback New South Wales.

The project, spearheaded by Canadian company Hydrostor, represents an investment of $638 million and is anticipated to supply power to approximately 80,000 homes during periods of peak energy demand.

NSW Planning and Public Spaces Minister Paul Scully announced the successful approval of the Silver City Energy Storage Centre.

This facility utilizes innovative technology to generate electricity by using compressed air, which enables energy storage without greenhouse gas emissions.

Minister Scully emphasized the project’s potential to enhance energy security in the region, especially in light of past blackouts, including a significant incident that affected the area in October of the previous year.

The energy storage center will have a capacity to store about 200 megawatts of energy.

During times of reduced energy demand, excess electricity produced will be utilized to compress air, which will be stored in large underground tanks.

When energy demand rises, the compressed air will be heated and expanded through turbines to generate electricity.

This dual-functionality characterizes the project as both a storage and generation facility.

The construction phase is expected to take three to four years, starting this year, and is projected to create between 250 to 400 jobs annually during this period.

Broken Hill Mayor Tom Kennedy expressed optimism about the project, indicating it would stimulate local economic growth and potentially reverse the city’s declining population, which was recorded at 17,588 in the 2021 Census, down from a peak of approximately 35,000 in the 1960s.

After the construction phase, the facility will maintain around 26 operational jobs.

The New South Wales government has endorsed a long-term lease of the crown land site to Hydrostor, set for 65 years.

In parallel, changes in land use and development are occurring in the Sydney metropolitan area.

The NSW government’s recent rezoning initiative around 39 train and metro stations is projected to enable the construction of 138,000 homes over 15 years, significantly altering the character of regions such as Sydney’s upper north shore.

Areas surrounding stations like Roseville, Lindfield, Killara, and Gordon are now subject to increased housing density, allowing for six-storey apartment developments amidst existing heritage homes.

While some local residents are collaborating to sell their properties to developers, others express concern over potential impacts on the neighborhood's character, including fears that heritage conservation areas will be compromised.

The local Ku-ring-gai Council had initiated legal action against the state government’s rezoning plans, seeking to protect the area's heritage and tree canopy.

However, this legal action is currently on pause as the council seeks alternative solutions.

The ongoing discussions involve proposals that could balance housing development with conservation measures and maintain the historical integrity of the neighborhood.

In this context, community groups are actively engaged in dialogues about the impact of these developments, including concerns regarding the loss of green spaces and the character of heritage-listed properties.

The council plans to present preferred zoning scenarios by March, with public exhibition following, as part of its negotiations with state planning authorities.
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