Altech Batteries (ASX:ATC) announcement overview

Altech Batteries Limited (ASX: ATC, FRA: A3Y) has signed an Offtake Letter of Intent with Zweckverband Industriepark Schwarze Pumpe (ZISP) for the purchase of 30MWh of energy storage capacity annually, comprising of 1MWh GridPacks, for the first five years of production. This agreement also involves collaborating to convert the Schwarze Pumpe Industrial Park entirely to renewable energy, with the integration of Altech's CERENERGY® GridPack Battery Energy Storage System. The deliveries of GridPacks are expected to commence by mid-2027 or when the plant is ready.

Executive commentary on the agreement

This Letter of Intent marks a significant milestone for Altech Batteries as it represents our first offtake agreement for the CERENERGY® GridPack Battery Energy Storage System. The interest shown by the Schwarze Pumpe Industrial Park Association (ZISP) in our technology is a clear signal of growing demand for innovative energy storage solutions, particularly as industries shift toward 100% renewable energy. It's encouraging to see potential customers like ZISP recognise the value of our scalable and reliable battery systems. This LOI not only validates the commercial potential of our CERENERGY® technology but also supports our future growth strategy, as securing such agreements strengthens Altech's position for project financing and expansion. We're excited to continue working closely with ZISP, and we believe this partnership will pave the way for future demand as the industrial park moves toward a green energy future. With the first delivery expected mid-2027, this agreement is just the beginning of what we expect will be a significant increase in battery demand.

Summary of Altech Batteries (ASX:ATC) announcement

Altech Batteries Limited (ASX:ATC) has secured an Offtake Letter of Intent with Zweckverband Industriepark Schwarze Pumpe (ZISP) for the purchase of 30MWh of energy storage capacity annually, comprising of 1MWh GridPacks, for the first five years of production. This agreement also involves collaborating to convert the Schwarze Pumpe Industrial Park entirely to renewable energy, with the integration of Altech's CERENERGY® GridPack Battery Energy Storage System. The partnership signifies a significant step in replacing coal with sustainable, renewable energy solutions, aligning with Germany's legislative mandate for the coal phase-out. The project supports ZISP's goal of achieving certification under the EU's 'Zero Valley' initiative, making Schwarze Pumpe a model for renewable energy storage and generation. The deliveries of GridPacks are expected to commence by mid-2027, marking the beginning of a potential increase in battery demand.