BHP and ACCIONA Energía Eye Pumped Hydro Future for Australia’s Mt Arthur Coal Site
BHP and renewable energy giant ACCIONA Energía are weighing a massive pumped hydro storage project at the Mt Arthur Coal mine in New South Wales—a move that could transform the soon-to-close mining site into a linchpin of Australia’s energy transition. Over the next 12 months, ACCIONA will conduct due diligence on the proposal, which could help stabilize the region’s grid while extending its economic life beyond fossil fuels.
From Coal Pit to Clean Energy Hub
BHP confirmed plans to shutter Mt Arthur Coal in 2030 after securing approval from the NSW government to extend mining operations by four years, pushing the closure from mid-2026 to June 2030. The sprawling 7,000-hectare site, one of Australia’s largest open-cut coal mines, is now being eyed for repurposing—with pumped hydro storage emerging as a leading contender. The technology, which uses excess renewable energy to pump water uphill before releasing it to generate power during demand peaks, could leverage the mine’s existing topography.
Our focus is on leaving a positive legacy in the Hunter Valley, said BHP President Geraldine Slattery, underscoring the company’s push to align post-mining plans with community priorities.
Jobs, Cash, and a Renewable Pivot
The project isn’t just about megawatts. BHP has pledged AUS$30 million to a community fund aimed at economic diversification in the Upper Hunter, where mining has long dominated. If realized, the pumped hydro facility could help offset job losses from the mine’s closure while cementing ACCIONA’s foothold in Australia’s energy market. The Spanish firm already operates 600 MW of assets locally, with another 1.3 GW in the pipeline, and boasts over 14 GW of global generation capacity.
Meanwhile, unrelated but symbolic of the energy shift underway: Germany’s EnBW He Dreiht offshore wind farm just installed its first turbine, a reminder of the accelerating global transition BHP and ACCIONA are now navigating—one mine at a time.
