AGL Energy has announced that construction will begin later this year on a 500-megawatt, four-hour duration grid-scale battery, following a final investment decision. Located in the Hunter Region of New South Wales, the Tomago battery project is expected to be operational by late 2027 and will have an asset life of 20 years. The total construction cost is estimated at approximately $800 million. AGL Energy is an Australian energy company focused on providing essential services, including gas and electricity, to homes and businesses.
AGL has contracted with Fluence as the engineering, procurement, and construction provider for the project. The battery will be funded using operating cash flows and existing debt facilities, including green capital expenditure loans. This strategic investment aligns with AGL’s broader decarbonisation goals.
Chief Executive Damien Nicks stated that the final investment decision for the Tomago battery project marks another milestone in AGL’s strategy and the transition of its energy portfolio. The company aims to deliver sustainable energy solutions. AGL’s core business involves operating a diverse power generation portfolio, as well as retail gas and electricity operations.
According to Nicks, the Tomago Battery will enhance AGL’s existing suite of grid-scale battery assets and contracted capacity, further bolstering their flexible asset portfolio. He added that the 250MW Torrens Island and 50MW Broken Hill Batteries have shown strong performance since operations began, with the 500MW Liddell Battery on track to commence operations in early 2026.
