BHP has joined forces with partner ACCIONA Energía. Together, they are looking at the potential to convert part of the Mt Arthur Coal site into a pumped hydro facility. It was this advance that led to Australia’s largest single-site metropolitan footprint, the 7,000+ hectare Mt Arthur Coal operation, in New South Wales. Additionally, it’s committing to end extraction-related activities by 2030. This agreement represents an exciting development towards sustainable energy solutions to the Hunter Valley region.
With the agreement in place, the partnership will begin a pre-construction detailed feasibility study to determine whether the pumped hydro project is viable. The goal of the research was to investigate how this technology could play a key role in the region’s future energy landscape. Combined with the mine’s natural series of elevation changes and plentiful catchments, this makes for ideal conditions to generate energy. Pumped storage is the best fit for using this potential.
BHP president Australia, Geraldine Slattery, highlighted the company’s focus on supporting a responsible transition. In 2022, we explored all avenues, including through divestment, in-depth. BHP subsequently announced our intention to cease operations at Mt Arthur by 2030,” she said. The NSW Government has approved an extension of mining activities until June 2030, allowing for a gradual shift towards creating alternative land uses at the site.
The pumped hydro project has the potential to make the biggest positive impact on the local community. The project would directly create an estimated 1,000 jobs during its construction phase and be expected to significantly increase economic activity in nearby Muswellbrook. In addition, this new initiative fits nicely with BHP’s commitment to provide a positive legacy through its operations in the Hunter Valley.
“The community has communicated strongly that they do not only wish to see Mt Arthur mined, but repurposed at the end of its operational life. This technical study will specifically explore the importance of pumped hydro at the Mt Arthur site. Slattery underscored how important it will be to the region’s future.
Once completed, this project will be able to provide enough energy to power 500,000 homes per day across New South Wales. As gas prices rise, it would help to alleviate the region’s burgeoning energy needs. The $30 million fund established by Mt Arthur Coal aims to support the local community and its residents through this transition.
BHP’s further commitment to its partnership is a significant move toward protecting and deepening its new strategy to responsibly close Mt Arthur Coal. In parallel, it has been looking hard for sustainable alternatives to the site. The feasibility study conducted by ACCIONA Energía will be pivotal in determining how best to harness the site’s resources for future energy demands.