Victoria to Build Australia's First 200 MWh CO2 Battery for 10-Hour Power

MELBOURNE – Victoria’s Latrobe Valley is set to host Australia’s first commercial-scale compressed carbon dioxide (CO2) battery energy storage facility, a significant advancement in long-duration energy storage. The State Electricity Commission (SEC) has partnered with Italian clean technology company Energy Dome to deploy a 20-megawatt (MW) / 200-megawatt-hour (MWh) CO2 battery system near Morwell, within a new 143-hectare energy innovation precinct adjacent to the decommissioned Hazelwood power station. The announcement, made this week, marks a crucial step in Victoria’s transition away from coal-fired generation and towards a reliable, renewable energy future.

This new facility will be Victoria’s first long-duration energy storage (LDES) system, capable of continuously supplying electricity for 10 to 12 hours. This duration is more than double that of any existing battery operating in the state today, which typically provide two to four hours of storage.

SEC Chief Executive Officer Chris Miller emphasised the foundational role LDES will play in Victoria’s evolving power system. “Long-duration energy storage will play a foundational, system-level role in Victoria’s future energy system, firming variable renewable generation from wind and solar to deliver the around-the-clock reliability of supply that’s needed to power our homes, businesses and communities,” Miller stated. The project aims to provide critical grid stability as older, synchronous generators retire, balancing the intermittency of wind and solar power.

How CO2 Batteries Work

Unlike traditional lithium-ion batteries, Energy Dome’s CO2 Battery technology operates on a closed-loop thermodynamic process using carbon dioxide. When excess renewable electricity is available, CO2 gas is compressed and converted into a liquid, storing energy. The heat generated during this compression is also captured. When power is needed, the liquid CO2 is reheated, expanded through a turbine to generate electricity, and then returned to its gaseous state, ready for the next charging cycle. This system relies on readily available materials like steel, water, and CO2, offering an alternative to mineral-intensive battery chemistries.

“Our CO2 battery delivers 10 to 12 hours of clean, dispatchable power, using proven compressor and turbine technology familiar to the Latrobe Valley workforce.” — Claudio Spadacini, Founder and CEO of Energy Dome

Energy Dome Founder and CEO Claudio Spadacini highlighted the technology’s use of established compressor and turbine technology, which is familiar to the Latrobe Valley workforce, facilitating a just transition for the region historically reliant on coal. Planning and design for the project have already commenced, with early stakeholder and community consultations underway.

Addressing Victoria’s Energy Transition Challenges

Victoria has seen rapid growth in shorter-duration battery storage, with projects like the 600 MW / 1.6 GWh Melbourne Renewable Energy Hub coming online in late 2025. However, the state, like the broader National Electricity Market, requires increasing amounts of dispatchable, long-duration storage as coal-fired power stations like Eraring in NSW approach retirement.

The 20 MW / 200 MWh CO2 battery will be a cornerstone of the SEC Energy Works precinct, which aims to foster a range of new energy infrastructure and storage technologies. This initiative aligns with the SEC’s broader program to develop 4.5 GW of new renewable energy and storage capacity across Victoria. The project’s extended duration capabilities will be critical for firming variable renewable generation, ensuring continuous supply even during prolonged periods of low wind or solar output. This capability complements the faster response times of lithium-ion batteries, creating a more robust and resilient grid. For Australian households considering their own energy storage solutions, understanding the broader grid context of battery technologies is increasingly important.

While this project focuses on grid-scale applications, the underlying drive for energy independence and bill reduction also fuels the residential battery market. Homeowners looking to integrate solar and battery storage can explore options like the Best Home Solar Batteries in Australia 2026: Models, Prices & Post-May Rebates. The federal Cheaper Home Batteries Program continues to offer significant upfront discounts, making residential storage more accessible.

This investment in novel long-duration storage technology underscores Australia’s commitment to diversifying its energy storage portfolio and achieving net-zero emissions. As the energy landscape evolves, such innovative projects are vital for supporting the grid and ensuring energy security for all Australians.

Future Implications for Australia’s Grid

The deployment of Australia’s first CO2 battery in Victoria signals a broader trend towards exploring diverse and complementary energy storage solutions. This project, if successful, could pave the way for similar long-duration systems across the country, further enhancing grid stability and reducing reliance on fossil fuels. The National Renewable Energy Priority List, updated this week, also highlights the growing importance of battery storage, adding 11 new generation and energy storage projects, including several large hybrid renewable developments that combine wind or solar generation with battery energy storage systems.

As Australia continues to accelerate its grid-scale battery expansion, the focus is not just on capacity but also on the duration and type of storage. This strategic diversification is essential for managing a grid increasingly powered by intermittent renewable sources. For those interested in the economics of integrating solar and storage, understanding the full scope of costs and benefits, including rebates and potential VPP participation, is key. Information on broader solar system costs can be found in our Solar System Installation Costs in Australia 2026: A Complete Guide and for optimising existing setups, consider Maximise Your Solar Savings in Australia 2026: Unlock $1,500+ Annually with Smart Strategies.

This pioneering CO2 battery project in Victoria represents a tangible step towards a more robust, reliable, and sustainable energy future for Australia, demonstrating an openness to innovative technologies beyond conventional lithium-ion solutions to meet the complex demands of a transitioning grid.