BHP and ACCIONA Energía Eye Pumped Hydro Future for Mt Arthur Coal

A Post-Mining Energy Transition Takes Shape

BHP and renewable energy giant ACCIONA Energía are laying the groundwork for a major pumped hydro storage project at the Mt Arthur Coal mine in New South Wales. Over the next 12 months, ACCIONA will conduct due diligence on the site—a 7,000-hectare expanse that’s slated to cease mining operations in 2030 after a four-year extension granted by the NSW government. The move signals a strategic pivot for BHP as it seeks to repurpose aging coal assets for Australia’s renewable energy future.

“We’re committed to leaving a positive legacy in the Hunter Valley,” said Geraldine Slattery, BHP’s President for Australia. “This partnership explores how infrastructure can evolve to support new industries and local jobs.”

The Renewable Powerhouse Behind the Plan

ACCIONA Energía brings formidable credentials to the table: 600 MW of operational assets in Australia, another 1.3 GW in the pipeline, and a global portfolio exceeding 14 GW. The Spanish firm’s interest in Mt Arthur underscores the growing demand for large-scale energy storage solutions as coal exits the grid. Pumped hydro—which uses surplus renewable energy to pump water uphill before releasing it through turbines during peak demand—could transform the open-cut mine into a gravitational battery.

Funding the Transition

BHP is backing its rhetoric with a AUS$30 million community fund aimed at diversifying the Upper Hunter economy. The initiative will prioritize job creation and collaborative planning with local stakeholders, acknowledging the region’s impending shift away from fossil fuels. Meanwhile, the company is evaluating multiple post-mining land uses, with rehabilitation and renewable energy projects leading the options.

Global Parallels

The Mt Arthur proposal coincides with milestones elsewhere in the energy transition. In Germany, the first turbine was recently installed at EnBW He Dreiht—the country’s largest offshore wind farm under construction. These developments highlight how industrial giants and renewables firms are converging to reshape energy landscapes, whether through repurposed mines or next-gen wind projects.

For the Hunter Valley, the next decade will test whether coal country can reinvent itself as a hub for clean energy innovation. The clock starts now: BHP’s 2030 closure date leaves just six years to turn plans into reality.