AGL Energy scraps pumped hydro project in South Australia

It could not reach an agreement with the partner mining company.

Australia’s AGL Energy said it had mutually agreed with Hillgrove Resources Limited to cancel a proposed pumped hydro energy storage (PHES) project at the Kanmantoo copper mine in South Australia, according to an announcement.

Richard Wrightson, executive general manager of wholesale markets at AGL, said Hillgrove and AGL could not reach agreement on a way forward to progress the project.

“The signing was the start of a multiple stage process to progress the project and the agreements were subject to a number of conditions which needed to be satisfied within specified timeframes,” Wrightson said.

“As a result, Hillgrove and AGL have mutually agreed to terminate the PHES Project Agreement without any ongoing obligation on either party.”

AGL Energy is still looking at the feasibility of a pumped hydro plant at Bells Mountain in NSW, which if progressed will provide more than 250 MW of new storage capacity and is working with the NSW Government on a proposal to build a 50 MW battery at Broken Hill.

It also has other storage projects in progress like the 100MW Wandoan battery with Vena Energy in Queensland, a 30MW battery with ElectraNet in South Australia, and four 50 MW batteries to be built by Maoneng Group in NSW.