Port Kembla Pumped Hydro Energy Storage project

Innovative thinking for a clean energy future

The project proposal overview

The Port Kembla Pumped Energy Storage Project is a detailed, evidence-based proposal for a 2GW/35GWh pumped hydro energy facility. The project links the existing water storage of Cordeaux Reservoir with a freshwater reservoir to be built in the ocean next to the existing Port Kembla Coal Terminal.

The elevation difference between the two locations (300m) offers a suitable elevation difference for a pumped hydro, where water is pumped from the lower reservoir to the upper reservoir and then released, turning a turbine that generates electricity. Detailed concept and pre-feasibility studies have been conducted to explore suitable engineering options for construction and operation.

2GW

Power capacity

35GWh

Energy storage capacity

~SH2

Equivalent to the size of Snowy Hydro 2.0

How it works

The pumped hydro storage system’s operation follows a cyclical process: during periods of excess energy from the grid created by renewable sources, water is pumped from the lower reservoir to the upper reservoir. When electricity demand is high, or during peak hours, the stored water is released, flowing down to the lower reservoir through turbines to generate electricity. This cyclical process provides balance to the energy market in supply (and price).

Major infrastructure components

Upper reservoir

Upper reservoir

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Lower reservoir

Lower reservoir

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Underground power station and tunnelling

Underground power station and tunnelling

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Environmental compatibility

The natural landscape 

The natural landscape 

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Aquatic biodiversity

Aquatic biodiversity

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Environmental impact assessments

Environmental impact assessments

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Project benefits

The PKPHP is ideally placed to take advantage of the region’s geography and industrial setting. Benefits from the project include:

New energy storage

Store excess (Sydney) rooftop solar energy that can be distributed to nearby industries and  reverse power flows to Sydney at night using the existing infrastructure and necessary upgrades.

Stabilisation

Stabilise the National Energy Market with a secure firm energy supply.

Moving forward

Support energy transition: Accelerate the shift towards cleaner energy sources by offering peak usage electricity and long-duration firm dispatchable generation, which is valuable for the electricity market

A greener future

Promote clean industry expansion and coal-based power generation retirement.

Uniting energy solutions

Facilitating the storage of energy encourages the development of more variable renewable energy solutions within the Illawarra REZ, allowing electricity to be supplied during higher demand periods with certainty.

Growing the Illawarra

Facilitate reliable clean energy supply for industry and new industries in the Illawarra region from reliable and clean energy sources, supporting their growth and development.

Ensuring Australia’s electricity supplies remain stable and affordable as we transition to clean energy requires the backing of large-scale and long-duration storage.

Energy security

Affordable, reliable, safe, and appropriate: these are the hallmarks of a secure energy supply. As Australia moves toward net-zero emissions by 2050 and phases out coal-fired generation, there is an increasing urgency in the need to build long-duration storage for when the sun doesn’t shine and the wind doesn’t blow. The alternative is a volatile market and unreliable supply. Pumped hydro is an essential part of a secure energy and prosperous future.

Water security

Water scarcity and flood events have been major concerns for NSW over the past two decades. The proposed pumped hydro storage system, which will connect Cordeaux Reservoir with Port Kembla, will increase water storage capacity, provide flood mitigation options by ocean drainage, and further drought-proof the Greater Sydney water supply by hosting new seawater desalination. The project is a proposal that protects our precious water resources.

Green industry

Harnessing the potential of electrolysis for hydrogen, ammonia, or green steel production in a low-emissions future requires a dependable power source. Enter pumped hydro storage, offering stability and cost-effectiveness that can make hydrogen production an attractive choice. By locating energy production facilities at Port Kembla, we can achieve economies of scale and promote the decarbonisation efforts of heavy industries. Pumped hydro is the key to a greener industry and the catalyst for investments in clean fuel.

Community benefits

Think big. The PKPH proposal is an opportunity to rethink land use and management for the benefit of the community. From community access to preserving and promoting Indigenous cultural heritage and knowledge, the proposal considers how a major infrastructure project can be a community asset as much as an infrastructure asset. If we allow ourselves to think big.

Indigenous and community connection

mc2 Energy understands the cultural significance of the Illawarra escarpment and surrounding area to the Illawarra’s Aboriginal peoples. By engaging in open and meaningful dialogue, the project aims to incorporate their perspectives, values, and aspirations into the planning and implementation process. This collaborative approach ensures that the voices of Aboriginal people are heard, their concerns are addressed, and their cultural heritage is respected. The project recognises the importance of building long-term relationships with Aboriginal communities based on trust, mutual understanding, and respect for their rights and interests.

Wider community consultation will also take a partnership-based approach. Through inclusive consultation, the project strives to create opportunities for economic participation, employment, and capacity building, promoting a shared vision for sustainable development that aligns with the aspirations of the Wollongong community.

Other technology and Infrastructure

The project proposal includes associated technology and infrastructure for its operation as well as providing support for community facilities and industry development. The project will be an enabler for the region’s economic and community prosperity.