Mining giant BHP has partnered with global renewable energy and infrastructure company ACCIONA Energía to investigate the feasibility of developing a large-scale pumped hydro energy storage project at its Mt Arthur Coal mine in the Upper Hunter region of New South Wales. This initiative comes as BHP progresses with its plans to close its thermal coal mine by June 2030, following a recent four-year extension of mining operations granted by the NSW Government.

The potential pumped hydro project, leveraging the mine's natural elevation differences and ample water catchments, could represent a significant investment in the region's post-mining future. BHP's conceptual studies indicate the project could generate approximately 1,000 jobs during its construction phase and contribute to sustained economic activity in Muswellbrook. Furthermore, the facility is projected to have the capacity to power up to 500,000 homes across NSW daily, providing crucial dispatchable electricity to the grid.

Over the next twelve months, ACCIONA Energía will undertake comprehensive due diligence to assess the viability of converting a portion of the 7,000-hectare Mt Arthur site into a pumped hydro energy storage facility. ACCIONA Energía brings extensive experience in developing and operating large-scale renewable energy and infrastructure projects in Australia and globally, with 600MW of operational assets and another 1.3GW currently being commissioned in Australia alone. The company boasts over 14GW of operating electricity generation capacity worldwide.

Pumped hydro energy storage functions by utilizing two reservoirs at different elevations connected by large pipes and a turbine-generator system. During periods of low electricity demand, water is pumped from the lower to the upper reservoir, effectively storing energy. When demand increases, the stored water is released back down through the turbine, generating electricity on demand. This technology plays a vital role in ensuring grid stability and reliability, particularly with the increasing penetration of intermittent renewable energy sources like solar and wind.

Simultaneously, BHP has announced a significant commitment of $30 million to establish a community fund dedicated to supporting the Upper Hunter region as it prepares for the post-2030 landscape. This fund will operate through a shared decision-making model in partnership with the local community, prioritizing initiatives focused on job creation, industry diversification, and broader economic empowerment.

Geraldine Slattery, BHP President Australia, emphasized the company's commitment to the region, stating, "In 2022, following an extensive review of options including divestment, BHP announced our plan to cease mining at Mt Arthur in 2030." She further added, "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."