AGL Energy Limited has reached a Final Investment Decision (FID) on its 500 MW Liddell battery project, which is set to be located at the Hunter Energy Hub in NSW.
“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,” AGL Managing Director and CEO Damien Nicks said.
Construction for the grid-scale battery is expected to commence in early 2024, with the total construction cost estimated to be $750 million. Fluence is selected as the preferred engineering, procurement and construction provider.
“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,” Nicks stated.
According to him, the Liddell battery is crucial for achieving AGL’s interim goal of 5 GW of new renewables and firming capacity 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,” he added.
The Liddell battery project has received a $35 million grant from the Australian Renewable Energy Agency (ARENA) as part of its Advancing Renewables Program, as well as a Long-Term Energy Service Agreement (LTESA) negotiated by AEMO Services on behalf of the NSW Government.
Additionally, the battery will be paid for with AGL’s operating cash flows and existing debt facilities, including newly secured capex loans.
