Hillgrove Resources has entered into a binding agreement to develop, own and operate its pumped Hydro Energy Storage Project with AGL Energy for $31 million.
Hillgrove Rresources has successfully completed the proposal and the PHES project will be located at its Kanmantoo mine site, in the Adelaide hills.
This mine is one of the most under-explored and prospective base metal bases in Australia. It has the potential for outstanding copper-gold and silver-lead-zinc mineralisation.
The PHES project is expected to have 250 MW and eight hours of storage which will make it the largest storage capacity in South Australia.
Mining of the lower pond is expected to be completed by mid-2019 and feasibility studies are underway.
According to Hillgrove Managing Director Steven McClare, while this project will take some time, it is not Hillgrove’s primary focus.
“We are delighted to work with AGL on the delivery of this project which will transform a former mining site into one of the lowest cost electricity storage projects in Australia, at a time when synchronous generation and bulk storage is critically needed,” he said.
Recent documents state Hillgrove has no desire to become an energy generator and this is a one-off project to seek value for shareholders.
It is expected to be commissioned by 2021.