BHP has partnered with ACCIONA Energía to explore the development of a pumped hydro energy storage project at the Mt Arthur coal operation in New South Wales, which will cease mining by June 2030.
A standard pumped hydro system moves water between two or more reservoirs to store and generate energy.
Conceptual studies by BHP demonstrated that a pumped hydro energy storage project at Mt Arthur could support around 1000 jobs within the Upper Hunter region during its construction phase and provide power for up to 500,000 homes across NSW every day.
Over the next 12 months, ACCIONA Energía will conduct due diligence on the potential of converting part of Mt Arthur into a pumped hydro energy storage project.
“In 2022, following an extensive review of options including divestment, BHP announced our plan to cease mining at Mt Arthur in 2030,” BHP president Australia Geraldine Slattery said.
“Mt Arthur Coal sits on more than 7000 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.”
BHP has also committed $30 million to help support the Upper Hunter region prepare for 2030 and beyond.
The fund will be delivered in partnership with the community through a shared decision-making model and will prioritise:
- supporting job creation, entrepreneurship and industry diversification
- supporting education and training opportunities
- enhancing social, cultural and recreational wellbeing of local residents
- improving physical and mental health outcomes for residents of the Upper Hunter
- supporting the protection of Aboriginal heritage, historic heritage and cultural landscapes
- supporting Indigenous entrepreneurship and economic empowerment.
“BHP is committed to leaving a positive legacy in the Hunter Valley,” Slattery said.
“With our approval to keep mining to 2030 and with a $30 million fund, we’re recommitting to giving the community and our people the certainty and the support they need for the future.”