Canadian company Hydrostor has just received approval to build the first grid-scale compressed air energy storage system in Australia.

Hydrostor will deploy a 5MW / 10MWh system at a former zinc mine near Strathalbyn, South Australia. The advanced compressed air energy storage (A-CAES) project, expected to cost AU$30 million (US$21.09 million) in total, received development approval and has been welcomed in statements by local politicians including South Australia’s energy and mining minister, Dan Van Holst Pellekaan.

“This is another step in the transition of South Australia’s energy system by the integration of renewable energy into the grid to deliver cheaper, more reliable and cleaner energy,” van Holst Pellekaan said.

“A-CAES is a new energy storage technology for Australia that provides synchronous inertia, load shifting and frequency regulation to support grid security and reliability.”

The system is designed to use surplus electricity generated by nearby solar and wind facilities to run compressors. Air is also heated as it is compressed and stored underground. A Hydrostor video explainer can be seen below.