Old coal mine will host 270 MWh co-located storage project after environmental approval in Australia

Swedish renewable energy developer OX2 has received environmental approval to build the 135 MW Muswellbrook solar farm at a decommissioned coal mine in the Hunter region of New South Wales (NSW) in Australia, to be located in the Hunter Central Coast Renewable Energy Zone (REZ).

The solar farm will also feature a 270 MWh of battery energy storage system (BESS) from a two-hour duration setup, and the project is anticipated to be in operation by 2027. The site is around 130 kilometers northwest of Newcastle.

The environment, protection and biodiversity conservation act (EPBC) approval follows development approval in May 2025, and covers the project’s 4.8 square kilometre footprint, which is adjacent to the 2022-decommissioned Muswellbrook Coal Mine, on land owned by Queensland-headquartered mine operator Idemitsu Australia.

Idemitsu Australia is a majority shareholder in Brisbane-based critical minerals business Vecco Group, which is developing an integrated critical mineral and vanadium electrolyte project, and will work with OX2 on the Muswellbrook solar BESS project.

OX2 says the project forms part of a broader vision to redevelop the former mining site into a hub for industrial and energy innovation.

OX2 Australia Director of Development Catherine Way said the approval is OX2’s leading example of the transition of the region from coal mining to innovative post-mining land uses.

“The Muswellbrook solar project is an early mover in the re-purposing of a coal mine into an energy generation site and serves as an important test case for the broader region,” said Way.

Muswellbrook is the second NSW-based OX2 project to receive EPBC approval and follows the 90 MW Summerville solar and 360 MWh battery energy storage system project which was approved in July 2025.

OX2 Australia Country Manager Stephen Symons said the approvals reflect the growing momentum behind renewable energy across the country.

OX2’s portfolio in Australia currently includes 3.7 GW of solar, wind, and storage projects under development and construction. OX2 also provides management services for renewable energy assets, with 390 MW currently under management in Australia.

A study by Australian National University researchers in February 2024 identified 37 mine sites in Australia with potential for renewable energy storage, which could include solar farms.

From pv magazine Australia.