Compressed Air Energy Storage
Reviving Denison’s depleted gas fields for renewable energy
A schematic illustration of how a depleted gas reservoir can be repurposed for CAES (not to scale)
As a forward-looking natural gas producer, Denison has a goal to leverage its expertise to repurpose suitable depleted gas reservoirs into the world-first compressed air energy storage (CAES) facilities.
CAES uses renewable energy to compress atmospheric air into depleted gas reservoirs and converts the renewable energy into stored potential energy, akin to a compressed spring. That stored energy can then be released to drive turbines and generate clean electricity when energy demand rises.
When a gas field comes to the end of its life, CAES can transform well-sealed porous sandstone into long-duration energy storage. This revives the existing gas gathering system and the depleted reservoir, which would otherwise become a burden to be rehabilitated.
Engineering studies currently indicate that the highly permeable sandstone in one of Denison’s gas fields has the potential to support a 600MW/7.2GWh (600MW with a 12-hour duration) CAES plant. By providing large-scale energy storage, the CAES facility could address the intermittency challenges of renewables and ensure a reliable power supply.
The success of this project could then be duplicated to other gas fields with favourable reservoir conditions to advance Australia’s clean energy transition.
Denison is actively engaging with the Queensland Government to facilitate a regulatory framework for CAES in depleted gas reservoirs and secure a long-term tenure for the plant.
Initially a 5-10 MW CAES pilot plant would be developed to demonstrate the technical feasibility of the project, while identifying and managing any potential risks. Once proven, the technology from this pilot would be applied to the construction of the 600MW/7.2GWh project.
Benefits of 600 MW CAES
Our commitment to sustainability and stakeholders
Environmental Assessments
Before any project commences, Denison will conduct environmental assessments in accordance with all federal and state legal requirements.
Minimising Impact
Denison will consult with all stakeholders to minimise impact on valued area and ensure activities reduce any potential adverse impacts to the lowest practical level.
Audits & Compliance
Health, safety, and environmental audits will align with company standards, ensuring compliance with planning conditions throughout the project.
Training & Awareness
Denison will provide staff with environmental training and inform contractors of relevant requirements.
Disclaimer
The contents of this Presentation are conceptual in nature. The projects described therein have not yet proceeded to an authority to invest by Denison. They are conditional on a fully costed feasibility study, on obtaining funding (including external), on approval by, the Board of Denison, on the availability of the assets, on regulatory approvals and on various other constraints which are known or unknown at the time this Presentation is made and which may be outside the control of Denison at this time or in the future. This Presentation may be based on concepts or technologies that are not proven or that have not been fully assessed as feasible for the purpose of implementation in the context of constraints to be ascertained, or on assumptions which have not been tested. This Presentation may be based on third-party technologies that may not be available to Denison for proprietary or costs reasons. Timelines are conceptual in nature based on the best possible outcomes if all constraints were satisfied in a timely manner. This Presentation is for information only and must not be used for any investment purposes. This Presentation is not a prospectus, offering memorandum or other disclosure document and does not constitute or form part of, and must not be construed as, an offer to sell or issue securities or otherwise constitute an invitation or inducement or commitment for a person to purchase, subscribe for or otherwise acquire securities or to make any type of investment in Denison in Australia or any other jurisdiction.