AGL Selects Fluence to Deliver the 500 MW Liddell Battery Project in Australia
- None.
- None.
Insights
The announcement of Fluence Energy's contract with AGL Energy Limited to deliver a 500 MW / 1000 MWh energy storage system represents a significant step in the energy sector, particularly within the context of the Australian market. This project aligns with global trends towards renewable energy sources and the increasing importance of energy storage in managing grid stability and supporting decarbonization efforts.
From an industry analysis perspective, the scale of the project suggests a substantial investment in renewable infrastructure, which is indicative of the sector's growth. The mention of a 5-year service agreement and the use of Fluence’s Gridstack™ and Nispera™ software for asset performance management highlights the company's commitment to long-term service provision and technological innovation.
For stakeholders, the short-term implications involve capital allocation for construction and potential employment opportunities. In the long term, the project contributes to AGL's goal of 5 GW of new renewable and firming capacity by 2030, which is a significant component of their decarbonisation strategy. The energy storage system is likely to enhance grid reliability and facilitate the integration of renewable energy sources.
However, the construction and operational commencement timeline indicates a medium-term realization of benefits and stakeholders should consider the risks associated with project delays or technological challenges. Moreover, the financial impact on Fluence's balance sheet and the potential revenue from this project will be crucial factors for investors to monitor.
Fluence Energy's involvement in the Liddell Battery Project with AGL could potentially affect the company's financial performance. The contract for a 500 MW / 1000 MWh energy storage system is likely to represent a significant portion of Fluence's order book and revenue forecasts. Investors should note that such projects can have material impacts on future earnings, cash flow and overall financial health of the company.
Given the size of the project, it is reasonable to infer a positive impact on Fluence’s stock, as the market typically responds well to the announcement of large-scale contracts. However, the actual financial impact will depend on the project's profitability, execution and the terms of the contract, which are not disclosed in the announcement.
It is also important to consider that the energy storage market is competitive and rapidly evolving. Fluence's ability to deliver on this project could enhance its reputation and position in the market, potentially leading to more contracts. Conversely, any execution missteps could harm its market standing and financial results.
The Liddell Battery Project is a testament to the growing role of energy storage in supporting renewable energy sources. The use of Fluence's Gridstack™ energy storage product is expected to provide critical support for grid stability as more intermittent renewable energy sources, like wind and solar, are integrated into the power grid.
The operational performance of the asset will be optimized by Fluence's Nispera™ software, indicating a trend towards digitalization and smart management in energy systems. For the broader renewable energy sector, this project serves as a benchmark for the scale and integration of energy storage solutions.
While the project is poised to contribute positively to the transition to a low-carbon economy, it is also important to consider the environmental and social implications of such large-scale infrastructure projects, including resource use and community impacts during construction and operation.
The Liddell Battery Project expands Fluence’s work with AGL and is the largest energy storage system announced to date Fluence will deliver in Australia
MELBOURNE, Australia, Dec. 20, 2023 (GLOBE NEWSWIRE) -- Fluence Energy, Inc. (“Fluence”) (NASDAQ: FLNC), a leading global provider of energy storage products, services, and optimisation software for renewables and storage, today announced that the company has been selected by AGL Energy Limited (AGL) to deliver a 500 MW / 1000 MWh energy storage system for the Liddell Battery Project. Located at AGL’s Hunter Energy Hub in New South Wales, the project is the biggest energy storage system announced to date that Fluence will be designing, engineering, and constructing in Australia.
The project will use Fluence’s Gridstack™ energy storage product with a 5-year service agreement contributing to AGL’s planned 850 MW national grid-scale battery rollout. Construction for the project is expected to begin in early 2024, with the commencement of operations targeted for mid-2026. The project will also utilise Fluence's asset performance management software, Nispera™, to optimise the operational performance of the asset.
“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,” said AGL Managing Director and CEO, Damien Nicks. “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, marking a significant milestone in AGL’s decarbonisation pathway and the transition of its energy portfolio.”
“We are thrilled to expand our work with AGL and appreciate the trust that their team has placed in our energy storage technology,” said Fluence SVP & President APAC, Jan Teichmann. “We are honoured to further strengthen our relationship with AGL with the Liddell Battery Project, the second battery storage system we will deliver to AGL in Australia. This grid-forming battery storage system is an important milestone for Fluence since it is the largest system announced to date that we will deliver in Australia, which further demonstrates our long-term commitment to the country’s energy transition.”
To date, Fluence has been selected to deliver over 1 GW energy storage projects within Australia to enhance grid stability and enable the country’s clean energy transition. Globally, Fluence has deployed and contracted 7.6 GW of energy storage projects.
About Fluence
Fluence Energy, Inc. (Nasdaq: FLNC) is a global market leader in energy storage products and services, and optimization software for renewables and storage. With a presence in 47 markets globally, Fluence provides an ecosystem of offerings to drive the clean energy transition, including modular, scalable energy storage products, comprehensive service offerings, and the Fluence IQ Platform, which delivers AI-enabled digital applications for managing and optimizing renewables and storage from any provider. The company is transforming the way we power our world by helping customers create more resilient and sustainable electric grids.
For more information, visit our website, or follow us on LinkedIn or Twitter. To stay up to date on the latest industry insights, sign up for Fluence's Full Potential Blog.
Forward-Looking Statements
The statements described herein that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements regarding the operational performance of the Liddell Battery Project, expected timeline of the Liddell Battery Project, and anticipated performance of Nispera. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. When used in this press release, words such as “may,” “possible,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions and variations thereof and similar words and expressions are intended to identify such forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.
The forward-looking statements contained in this press release are based on our current expectations and beliefs concerning future developments, as well as a number of assumptions concerning future events, and their potential effects on our business. These forward-looking statements are not guarantees of performance, and there can be no assurance that future developments affecting our business will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements, which include, but are not limited to, impacts to the Liddell Battery project from geopolitical instability, extreme weather, and/or changes in Victoria and/or Australia’s regulatory regime and energy goals relating to renewables and energy storage, failure to achieve the anticipated benefits and operational performance from the Liddell Battery project, and other factors set forth under Item 1A.“Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended September 30, 2023,filed with the Securities and Exchange Commission (“SEC”) on November 29, 2023, and in other filings we make with the SEC from time to time. New risks and uncertainties emerge from time to time and it is not possible for us to predict all such risk factors, nor can we assess the effect of all such risk factors on our business or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward-looking statements. Should one or more of these risks or uncertainties materialize, or should any of the assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. You are cautioned not to place undue reliance on any forward-looking statements made in this press release. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that occur, or which we become aware of, after the date hereof, except as otherwise may be required by law.
Media Contact
Adele Zhang, Head of Marketing & Communications, APAC
Email: Adele.Zhang@fluenceenergy.com
Phone: +61 406529688
Analyst Contact
Lexington May, Vice President of Investor Relations
Email: investorrelations@fluenceenergy.com
Phone: +1 (713) 909-5629
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/63ded6e2-6df4-4de9-9dd6-def3b9d8aaf5
FAQ
What is the Liddell Battery Project and who is involved?
Where is the Liddell Battery Project located?
What energy storage product will be used for the Liddell Battery Project?
When is the construction of the Liddell Battery Project expected to begin?
How much energy storage projects has Fluence been selected to deliver within Australia?
