BHP weighs pumped storage project at closing coal mine

BHP, an Australian mining company, has partnered with renewable energy and infrastructure company ACCIONA Energía to explore the development of a pumped hydro energy storage project at Mt Arthur Coal, an open-cut energy coal mine.

In 2022, BHP announced its decision to transition Mt Arthur Coal to closure in 2030, based on the mine reaching the end of its economic life. 

As part of the planned pathway for closure, BHP has gained approval from the New South Wales (NSW) Government to extend mining activities at Mt Arthur Coal for an additional four years, from July 2026 to June 2030.

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BHP’s conceptual studies show that a pumped hydro energy storage project at Mt Arthur Coal has the potential to: 

• Support around 1,000 jobs within the Upper Hunter in the construction phase;
• Contribute to ongoing economic activity in Muswellbrook; and
• Provide power for up to 500,000 homes across NSW every day.

Over the next twelve months, ACCIONA Energía will evaluate the possibility of converting part of the Mt Arthur site into a pumped hydro energy storage project. 

ACCIONA Energía has experience in developing large scale infrastructure and renewable energy projects in Australia, including 600MW of operating assets with another 1.3GW currently being commissioned, and over 14GW of operating electricity generation worldwide. 

Separately, BHP is committing to a $30 million community fund to help support the Upper Hunter prepare for 2030 and beyond. The fund will be delivered in partnership with the community through a shared decision-making model and will prioritise job creation, industry diversification and economic empowerment.  

“In 2022, following an extensive review of options including divestment, BHP announced our plan to cease mining at Mt Arthur in 2030,” said BHP president Australia, Geraldine Slattery. “Mt Arthur Coal sits on more than 7,000 hectares and we are working hard to explore alternative land uses for the site that will continue to support jobs, investment in the region, and the local economy. The community have told us they want to see Mt Arthur repurposed when mining ends. This study will examine the role pumped hydro at the Mt Arthur site could play in the region’s future.”

Pumped hydro facilities can provide dispatchable electricity; generating it on demand or acting as storage for supply when required. The technology works by running water between two reservoirs that are at different elevations and connected by large pipes and a turbine which is connected to a generator. During periods of lower demand, water is pumped from the lower to the upper reservoir, storing it for later use. 

Mines, such as Mt Arthur Coal, can be well-suited for pumped hydro projects, due to their geological characteristics such as natural elevation differences and ample catchments for use as reservoirs.

Originally published by Sean Wolfe on Factor This