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Yancoal Australia subsidiary Gloucester Coal will transform the former Stratford Mining Complex into a renewable energy hub after securing approval for a $1.8 billion project featuring a 300 megawatt (MW) pumped hydro power station with 12 hours of energy storage and a 320 MW solar farm.

The Stratford Pumped Hydro and Solar project will be built on the Gloucester Valley site, about 100 km north of Newcastle, where coal mining operations ended in 2024, giving the former mine a new role in New South Wales’ energy transition.

The project is expected to power up to 120,000 homes while creating up to 350 construction jobs and 10 ongoing operational roles. It will also deliver around $18.2 million over the life of the project for community and infrastructure initiatives through a Voluntary Planning Agreement with Mid Coast Council.

The development includes a 300 MW pumped hydro power station connected to a new upper reservoir and an existing dam via a tunnel. Water for the initial reservoir will be sourced from the existing mine site.

The facility will store surplus electricity generated during the day by transferring water between the reservoirs before releasing it to generate electricity during periods of peak demand in the evening. The project is forecast to deliver around 13 per cent of NSW’s 2034 long-duration energy storage target.

Declared Critical State Significant Infrastructure in June 2024, Stratford Pumped Hydro forms part of the NSW Government’s Electricity Infrastructure Roadmap, a 20-year strategy to diversify the state’s electricity generation mix and strengthen energy security as coal-fired power is phased down.

NSW Minister for the Hunter Yasmin Catley said the project demonstrated how former mining land could be repurposed for the state’s future energy needs.

“This is exactly what planning for the future looks like,” Catley said.

“We are taking a former mine site and giving it a new purpose powering up to 120,000 homes across New South Wales.

“This is a major vote of confidence in our region. We have the land, infrastructure, and skilled workforce needed to deliver the next generation of major energy projects.”

NSW Minister for Planning and Public Spaces Paul Scully said the approval marked an important milestone for the state.

“This is the first pumped hydro project to secure final planning approval in NSW in 6 years. It’s a sign of our commitment to a clean energy future and the beginnings of an evolution of jobs and energy generation in the Hunter to power homes and businesses,” Scully said.

“Projects like Stratford Pumped Hydro also show how we can make the most of former mining sites and create new jobs and industry which will help to drive the region’s economic growth for decades to come.”