AGL Approves 500MW Tomago Battery Construction in NSW

AGL Energy has approved the construction of a 500-megawatt, four-hour duration grid-scale battery called the Tomago Battery in the Hunter Region of New South Wales, with operations expected by late 2027 and a projected asset life of 20 years. The project, costing approximately $800 million, will be funded through operating cash flows and debt, including green capital expenditure loans, supporting AGL's strategy to transition towards cleaner, flexible energy and achieve net-zero emissions by 2035. Fluence has been contracted as the engineering, procurement, and construction provider for the project, marking its largest global transaction and one of the largest in the Australian National Energy Market (NEM). The Tomago Battery will be the third grid-scale battery Fluence delivers to AGL, joining the 50 MW Broken Hill and the 500 MW Liddell batteries, and will feature Fluence's Gridstack Pro technology to enhance grid reliability with grid-forming capabilities. AGL aims to expand its grid-scale battery portfolio further, targeting 1.4 gigawatts of battery storage projects within the next year, reflecting its broader ambition to pivot to renewable energy and flexible assets. This strategic investment solidifies AGL’s commitment to sustainable energy solutions and strengthens its existing flexible asset portfolio.