The Australian Government and NSW Government will fund a feasibility study into turning a former underground coal mine into pumped hydro energy storage (PHES).
Centennial Coal will investigate the technical feasibility of repurposing its disused Newstan Colliery at Fassifern, near Newcastle.
The site has several features that would lower the cost of repurposing the mine into PHES. These include a lower reservoir, a grid connection and available water sources.
If feasible, the site could supply an additional 600MW to the grid.
ARENA will provide $995,000 and the NSW Government will contribute $4.16 million to the $13.04 million project.