AGL Energy Limited (AGL) has confirmed a Final Investment Decision (FID) on its 500 megawatt (MW), four-hour duration Tomago Battery Project in New South Wales, marking one of the largest grid-scale storage developments in Australia.
The $800 million investment will see construction commence in late 2025 at Tomago, in the Hunter Region, with commissioning targeted for late 2027.
The grid-forming battery will have an expected operational life of 20 years and play a key role in supporting the state’s energy transition by providing firming capacity as coal-fired generation retires.
US-based Fluence has been contracted as the engineering, procurement, and construction provider for the project.
The development will be fully funded from AGL’s balance sheet, using a combination of operating cash flows and existing debt facilities, including green capital expenditure loans.
AGL’s Managing Director and CEO, Damien Nicks, said the decision underscored the company’s commitment to accelerating its decarbonisation plans.
“The Final Investment Decision on the Tomago battery project marks yet another significant milestone in AGL’s delivery of its strategy and the transition and decarbonisation of its energy portfolio,” Nicks said.
He emphasised that the Tomago Battery would complement AGL’s growing suite of flexible energy assets.
“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.
“Importantly, both the 250 MW Torrens Island and 50 MW Broken Hill Batteries have delivered strong performance since they commenced operations, and the 500 MW Liddell Battery remains on track to commence operations in early 2026.”
Looking ahead, Nicks highlighted AGL’s extensive development pipeline.
“In addition, we have a clear pathway to FID for a further 900 MW of grid-scale battery projects, as we aim to accelerate the development of our grid-scale battery portfolio and grow our fleet of flexible assets.
“We will continue to leverage our innovative, in-house capabilities to optimise the performance of our grid-scale battery assets.”
The Tomago project follows a series of grid storage initiatives as AGL transitions its generation portfolio away from fossil fuels.
With coal capacity in the Hunter expected to retire over the next decade, large-scale battery projects such as Tomago are seen as critical to maintaining grid stability while accommodating higher levels of renewable generation.
At full operation, the Tomago Battery will have the ability to store up to 2,000 megawatt-hours (MWh) of electricity, making it one of the largest storage projects in the nation.