Denison Gas is spearheading a global first by progressing a Compressed Air Energy Storage (CAES) project in a depleted gas field within Queensland’s Bowen Basin, aiming to address the critical challenge of long-duration energy storage (LDES) for renewable power.

The project proposes to repurpose the Rolleston gas field’s unique geology and existing infrastructure to deliver a 600 MW, 12-hour CAES facility, leveraging Central Queensland’s abundant solar resources to compress and store air underground for later electricity generation.

The CAES process involves using surplus renewable energy to compress atmospheric air into well-sealed, porous sandstone reservoirs left by depleted gas fields.

When electricity demand peaks, the stored air is released to drive turbines, generating clean power and helping to balance the intermittency of renewables on the grid.

This innovative approach not only extends the productive life of gas field assets but also supports Queensland’s transition to a more reliable, cleaner energy system, aligning with the state government’s “balanced approach” to net zero, combining selective renewable projects with traditional generation sources.

While large-scale commercial CAES projects have recently been developed in China using salt caverns, and a Canadian company is set to build a similar facility in New South Wales, Denison’s project is notable as the first to utilise a depleted gas reservoir for this purpose.

Engineering studies indicate the Bowen Basin’s sandstone can support the ambitious 600 MW/7.2 GWh plant, with an initial 5–10 MW pilot planned to demonstrate feasibility and manage risks before scaling up.

A recent paper published in the Australian Energy Producers Journal by Denison’s leadership and engineering team has detailed the Rolleston field’s suitability and the underpinning research for this clean energy solution.

However, the company is now awaiting regulatory frameworks to catch up with the technology and research, actively engaging with the Queensland government to secure approvals and long-term tenure for the plant.

Environmental assessments and stakeholder consultations are set to ensure the project meets all compliance and sustainability standards.

If successful, Denison’s CAES model could be replicated across other suitable gas fields, positioning Australia as a leader in innovative, large-scale renewable energy storage solutions.