AGL Energy's Final Investment Decision on Liddell Battery Project

AGL Energy Limited (ASX:$AGL) has announced the 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. The construction work for the battery is expected to commence in early 2024, with operations targeted for mid-2026. The total construction cost is estimated to be approximately $750 million, and Fluence has been selected as the preferred engineering, procurement, and construction provider.

AGL Managing Director and CEO, Damien Nicks, on Liddell Battery Project

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. We will continue to leverage our innovative, in-house capabilities to optimize the performance of our grid-scale battery assets.

AGL Energy's Liddell Battery Project Summary

AGL Energy Limited has reached a Final Investment Decision (FID) on a 500 MW, two-hour duration, grid scale battery project at its Hunter Energy Hub in New South Wales. The construction work is expected to begin in early 2024, with operations targeted for mid-2026. The total construction cost is estimated to be approximately $750 million. The project will be supported by a $35 million grant awarded by the Australian Renewable Energy Agency (ARENA) and a Long-Term Energy Service Agreement (LTESA) arranged by AEMO Services on behalf of the NSW Government. AGL's Managing Director and CEO, Damien Nicks, highlighted that the Liddell battery will be a key component of achieving the company's interim target of approximately 5 GW of new renewables and firming capacity in place by 2030. AGL will continue to leverage its innovative, in-house capabilities to optimize the performance of its grid-scale battery assets.