Final Investment Decision reached on the 500 MW Liddell battery project
AGL Energy Limited (AGL) today announced it has reached a Final Investment Decision (FID) on a 500 MW, two-hour duration, grid scale battery to be located at AGL’s Hunter Energy Hub in New South Wales.
Construction work for the battery is expected to begin in early 2024, with the commencement of operations targeted for mid-2026. The expected asset life of the battery is 20 years. The total construction cost of this grid forming battery project is estimated to be approximately $750 million. Fluence has been selected as the preferred engineering, procurement and construction provider.
The project will be supported by both a $35 million grant awarded by the Australian Renewable Energy Agency (ARENA) as part of its Advancing Renewables Program and a Long-Term Energy Service Agreement (LTESA), arranged by AEMO Services on behalf of the NSW Government.
The battery will be funded on AGL’s balance sheet, utilising operating cash flows and existing debt facilities including AGL’s recently secured green capex loans.
AGL’s Managing Director and CEO, Damien Nicks, said: “the Final Investment Decision on the Liddell battery project marks another significant milestone in AGL’s decarbonisation pathway and the transition of its energy portfolio.”
“We are excited to approve another major grid scale battery project in our development pipeline, supporting the local economy and creating energy transition jobs at our Hunter Energy Hub.”
“Importantly, the Liddell battery will be a key component of achieving our interim target of approximately 5 GW of new renewables and firming capacity in place by 2030.”
“Once completed, the Liddell battery will add to AGL’s existing suite of grid scale battery assets and contracted capacity from third parties. This includes the 250 MW Torrens Island battery, which commenced operations in August 2023, and the 50 MW Broken Hill battery which will commence operations shortly. We will continue to leverage our innovative, in-house capabilities to optimise the performance of our grid-scale battery assets.”
Authorised for release by AGL’s Market Disclosure Committee.