Victoria’s Latrobe Valley, home to the country’s most polluting coal-fired power plants, will soon host a ground-breaking and government-backed long-duration energy storage facility capable of continuously supplying electricity for between 10 and 12 hours.
The newly created state-owned utility, the SEC, said on Friday that it will develop the 20 megawatt (MW) closed-loop, compressed CO2 storage system in partnership with global storage innovator, Energy Dome, as the first project at a newly launched energy innovation precinct in Hazelwood North.
The Energy Dome, which will be installed at the 143 hectare precinct, will be Victoria’s first long-duration energy storage facility and Australia’s first commercial use of closed-loop, compressed CO2 energy storage.
The need for longer duration energy storage across Australia’s National Electricity Market (NEM) has been a hot topic in energy circles of late, particularly following recent bouts of winter doldrums, where slow moving high pressure weather systems have led to some record-breaking wind droughts.
Last month, SEC chief chief Chris Miller said the publicly-owned utility was turning its focus to deep energy storage, including non-lithium battery technologies with up to 12 hours duration, following up on the “standout” success of its first ever investment, the Melbourne Renewable Energy Hub (MREH)
In an address to the Australian Energy Week 2026 conference in June, Miller praised the 600 MW battery, which offers between two and four hours of storage, for its role in flattening the solar duck curve, lowering peak electricity prices, and stopping daytime prices from “scooting” into negative territory.
“The next challenge we see is seasonal balancing and providing backup during those extended periods of low solar and low wind,” Miller told the conference.
“I’d say here that there are clearly different technology options available to the market, different economics, different strengths.
“So to that end, we are … progressing some interesting development partnership opportunities with [original equipment manufacturers] of zero emissions firming technologies,” he said. “We’re progressing well into a joint development partnership with at least one OEM.”
Nearly a month later, that OEM has been revealed as Italian outfit, Energy Dome.
Founded in 2020, Energy Dome’s long duration storage technology is based on a thermodynamic process that uses CO2 to store electricity cost-effectively with what the company claims is “unprecedented round-trip efficiencies.”
According to the Milan-based company, its technology “uses a thermodynamic cycle, charging by drawing carbon dioxide from a ‘Dome’ gasholder, storing it under pressure, and then dispatching it by evaporating and expanding the gas through a turbine back into the gasholder.”
As Renew Economy has reported, Energy Dome last year announced plans to set up its APAC headquarters in Melbourne, when it also said Victorian government support would enable it to accelerate its expansion in the state.
In a statement on Friday, the SEC’s Miller said the utility was providing early investment and allowing industry to build the confidence to take new energy technologies to the next stage of commercialisation, while supporting the uptake of more renewables.
“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 said.
“SEC can play an important enabling role by supporting these newer, proven technologies to work on a commercial scale in the NEM, creating clearer market signals for private investors.
“As an integrated generator and retailer of 100% renewable electricity to commercial and industrial customers, we envisage long-duration energy storage will play a critical role in balancing our portfolio, enabling SEC to provide additional support to the system during multi-hour or multi-day wind or solar droughts.”
Claudio Spadacini, the founder and CEO of Energy Dome described the new project partnership in Victoria as a “defining moment” for the company.
“Our CO2 battery delivers 10 to 12 hours of clean, dispatchable power, using proven compressor and turbine technology familiar to the Latrobe Valley workforce,” Spadacini said.
“This project will help support the region’s transition from coal while maintaining the engineering skills that have powered Victoria for generations.”
Planning and design for the project has begun, the two companies say, with early stakeholder and community consultation now underway.
If you would like to join more than 29,000 others and get the latest clean energy news delivered straight to your inbox, for free, please click here to subscribe to our free daily newsletter.
