Fluence has penned its largest battery energy storage system (BESS) deal globally for a 2,000MWh battery storage project owned by Australia’s AGL.
Australian energy major AGL Energy and Fluence, a battery storage system integrator, clean energy software, and services company, have partnered to deliver a 500MW/2,000MWh grid-forming BESS in New South Wales.
The two companies will collaborate on delivering the 2,000MWh, 4-hour duration Tomago BESS, which is located within the Tomago Industrial Estate, northwest of the state’s second-largest city, Newcastle.
AGL received clearance for the project from the New South Wales government in November 2024.
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For Fluence, this represents its largest project transaction globally and sees the company surpass the 5GWh threshold for Australian projects in its pipeline.
With the signing of this deal, AGL confirmed it had reached a final investment decision (FID) on the grid-forming BESS.
Construction work for the BESS is expected to begin in late 2025, with the commencement of operations targeted for late 2027. The battery storage system’s expected asset life is 20 years.
The total construction cost of this grid-forming battery storage project is estimated to be approximately AU$800 million (US$516 million). It will connect to the National Electricity Market (NEM).
AGL also revealed that the BESS would be funded on AGL’s balance sheet, utilising operating cash flows and existing debt facilities, including green capex loans.
Damien Nicks, AGL’s managing director and CEO, said taking FID on the Tomago BESS represents a significant milestone for the business, and that AGL now has a “clear pathway” for FID on a further 900MW of grid-scale battery storage systems.
“Once operational, the Tomago Battery will expand on AGL’s existing suite of grid-scale battery assets and contracted capacity from third parties and further enhance our flexible asset portfolio,” Nicks said.
“Importantly, both the 250MW Torrens Island and 50MW Broken Hill Batteries have delivered strong performance since they commenced operations, and the 500MW Liddell Battery remains on track to commence operations in early 2026.”
Tomago grid-forming BESS to use Fluence’s Gridstack Pro
In a statement released today (31 July), Fluence said it would supply its Gridstack Pro for the utility-scale energy storage project.
Fluence launched the Gridstack series in 2020, claiming it to be a highly customisable yet mass production modular BESS solution. Gridstack Pro followed in 2023, which Fluence said at the time was aimed at the largest and most complicated projects its customers are undertaking.
Fluence has been contracted to construct the project and provide ongoing service and maintenance.
Jan Teichmann, senior vice president and president, APAC, at Fluence, hailed the deal, stating that it reiterates Fluence’s commitment to supporting AGL’s rollout of energy storage capacity across Australia.
“Australia remains one of the most important storage markets globally, experiencing significant growth as the country accelerates its transition to renewable energy sources,” Teichmann added.
Fluence and AGL have collaborated on several Australian BESS projects over the last few years, including the 50MW/50MWh Broken Hill and 500MW/1,000MWh Liddell BESS projects located in New South Wales.
AGL also has a target to add 12GW of renewables and firming to its portfolio by 2035.
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