The Queensland Government, through the Department of Environment, Tourism, Science and Innovation (DETSI), and Chinese Academy of Sciences (CAS) have each provided $125,000 in funding for a project led by The University of Queensland to assess the efficiency, safety and commercial readiness of large-scale and long-duration underground energy storage.

Denison Group, including Bowen Basin gas explorer and producer Denison Gas, is contributing subsurface expertise and asset knowledge to support the investigation of compressed air energy storage (CAES) and its potential role in the clean energy transition in Australia.

The concept involves storing renewable energy by compressing air, storing it underground then releasing it to drive a generator to create 8-12 hours of dispatchable power when needed, enabling reliable 24-7 supply. The technology has the potential to be a cost-effective alternative to mid-scale pumped hydro power.

The storage vessels can potentially be salt caverns or depleted gas reservoirs that are geologically sealed, or the cavities of abandoned underground mines. The research will examine these options in the context of Australian geological and regulatory conditions.

Denison Executive Chair Xingjin Wang said the partnership with UQ and CAS, China’s peak scientific organisation and a global leader in CAES research and development, would ascertain the suitability of the technology for Australian conditions.

“This large-scale, long-duration energy storage technology has the potential to underpin reliability and affordability of energy supply as more renewable power generation enters the power system,” Dr Wang said. “This research will allow us to rigorously assess safety, efficiency and subsurface suitability as a foundation for potential future energy-storage developments.”

CAES is operating at 100-300MW scale in China, Europe and North America and is now in commercial development in Broken Hill, NSW. These projects demonstrate the global potential of CAES, while this partnership focuses on understanding how the technology could be safely and effectively deployed in Australia. The findings of this research will also inform future long-duration energy storage initiatives within the Denison Group, including dedicated platforms focused on grid-connected energy storage.

Comments from The University of Queensland and Chinese Academy of Sciences are overleaf.

Professor Alexander Klimenko, Director of UQ’s Centre for Multiscale Energy Systems (CMES):

“The project marks a major milestone in bringing advanced CAES technology – a key enabler of the energy transition – to Australia,” Prof Klimenko said. “It has been made possible through close collaboration between CAS’s Institute of Engineering Thermodynamics, Denison Gas and UQ’s Centre for Multiscale Energy Systems, who are working together to adapt and further advance this technology for Australian conditions.”

Professor Haisheng Chen, Director of CAS’s Institute of Engineering Thermodynamics:

“Compressed air energy storage is one of the most competitive long-duration large-scale energy storage technologies in terms of high efficiency, low installation cost and long lifetime,” Prof Chen said.

“It plays a key role in realising carbon neutrality. Our team at the Institute of Engineering Thermodynamics has been developing the technology for two decades, while commercial demonstrations of 100MW and 300MW have been constructed and connected to the electricity grid. We are glad to collaborate with Australian partners closely to develop CAES in Australia to support a high penetration of renewable energy.”

The Denison photographs below are available on request to Paul Larter: 0400 776 937

More information regarding Denison Gas is available at www.denisongas.com.au
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PDF: Media Release – UQ-Denison partnership to explore underground energy storage