Mining giant BHP has taken a firm step toward the energy transition by partnering with ACCIONA Energy to evaluate the development of a pumped hydroelectric energy storage system at its Mt. Arthur Coal mine in New South Wales. The project is aligned with the planned phase-out of the mining operation by 2030.
The operation of the Mt Arthur mine
Since 2022, BHP had announced its decision to cease mining operations at Mt. Arthur after reaching the end of its economic life. However, the company has obtained an extension until June 2030 to maintain operations while working on new uses for the land.
The study with ACCIONA seeks to analyze the feasibility of transforming part of the site into a pumped-storage hydroelectric plant, capable of supplying energy to approximately 500,000 homes daily. This approach takes advantage of the existing topography and basins to store water and generate electricity on demand.
If the project is completed, it is estimated that it will generate nearly 1,000 jobs during the construction phase, boosting the economies of the Upper Hunter and Muswellbrook areas. In addition, BHP has announced a community fund of 30 million Australian dollars to support job retraining and economic development in the area.
ACCIONA Energy will contribute its technical expertise
The Spanish company ACCIONA Energía will lead a technical evaluation process over the next twelve months. Its presence in Australia includes 600 MW in operation and another 1.3 GW in the commissioning phase, which supports its experience in large-scale projects and storage technologies.
Pumped storage hydropower projects are recognized for their ability to store renewable energy and stabilize power grids . In contexts like Mount Arthur, with natural terrain and large existing reservoirs, they are an efficient solution for repurposing industrial land while preserving the site’s economic and environmental value.
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Source and photo: BHP
