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UQ at the forefront of Australia’s clean energy transition

22 January 2026

University of Queensland researchers will evaluate the efficiency, safety and commercial readiness of underground compressed air energy storage (CAES) in Australia.  

A partnership between UQ and Denison Gas will explore the potential for the technology to be deployed on a large scale and for long periods in Australian conditions. 

The project has received funding of $125,000 through the Queensland Government Department of the Environment, Tourism, Science and Innovation’s (DETSI) QCAS 2023 Round program.

That amount has been matched by the Chinese Academy of Sciences (CAS) which funded CAS’s Institute of Engineering Thermophysics, a global leader in CAES research and development, and the project participant.  

The overall value of the project is more than $500,000, made up by cash and in-kind contributions from participants. 

Dr Alexander Klimenko, Director of UQ’s Centre for Multiscale Energy Systems said the collaboration marks a significant milestone.

“CAES technology is a key enabler of the energy transition and is already in operation in China, North America and Europe with a commercial development underway in Broken Hill,” Dr Klimenko said.

“We are excited to work together with our partners to adapt and further advance this technology in Australia.”

CAES works by compressing atmospheric air and pumping it into an underground storage container, then releasing it to drive a turbine and generate electricity during periods of high demand.

Storage can potentially be in salt caverns or depleted gas reservoirs that are geologically sealed, or the cavities of abandoned underground mines.

Denison Group, including Bowen Basin gas explorer and producer Denison Gas, is contributing subsurface expertise and asset knowledge to support the investigation.

Denison Executive Chair Xingjin Wang said the partnership would assess the suitability of CAES for Australian conditions.

“This large-scale, long-duration energy storage technology has the potential to underpin reliability and affordability of energy supply as more renewable power generation enters the power system,” Dr Wang said.

“This research will allow us to rigorously assess safety, efficiency and subsurface suitability as a foundation for potential future energy-storage developments.”

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