Origin Selects Fluence to Deliver the 300 MW / 650 MWh Mortlake Power Station Battery in Australia
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Insights
The announcement by Fluence Energy of their partnership with Origin Energy for a substantial energy storage project is a significant development in the renewable energy sector. This collaboration underscores the growing demand for energy storage solutions that can mitigate the intermittent nature of renewable resources like solar and wind. The deployment of a 300 MW / 650 MWh battery system represents a considerable scale that can provide substantial grid stability and storage capacity, capturing excess power during peak renewable generation and discharging during high demand. This project can lead to a reduction in reliance on traditional fossil fuels and enhance the viability of renewables as a stable energy source, potentially influencing energy market dynamics and stock valuations for companies in the renewable sector.
The long-term service agreement and the use of AI-powered asset performance management software indicate a commitment to operational efficiency and could set a precedent for future energy storage projects. This is particularly relevant as the energy market continues to adapt to technological advancements and regulatory changes aimed at reducing carbon emissions. Investors may view such projects as indicators of a company's strategic positioning and long-term growth potential within the renewable energy space.
From a financial perspective, the partnership between Fluence Energy and Origin Energy is poised to have a tangible impact on Fluence's revenue streams and market position. The provision of a Gridstack™ energy storage product and a 15-year service agreement represents a significant long-term investment and a stable source of income for Fluence. The project's scale and the involvement of a major player like Origin Energy could be perceived positively by investors, potentially influencing Fluence's stock performance.
It is important to evaluate the capital expenditure involved and the expected return on investment. The project's commissioning timeline, set for late 2026, suggests a long-term horizon for revenue realization. However, the strategic nature of the investment in an emerging renewable energy zone could offer competitive advantages and contribute to shareholder value over time. Investors should monitor the execution of the project and any regulatory or technological developments that could affect its profitability.
The technical aspects of the project, such as the use of Fluence's Gridstack™ energy storage product and Nispera™ APM software, highlight a trend towards integrating advanced technologies to enhance the performance of renewable energy systems. The AI-powered software is designed to optimize the operational performance of the battery system, which is critical for maintaining energy supply reliability and efficiency. This can lead to improved energy management and cost savings, both of which are crucial for the adoption of renewable energy at scale.
Furthermore, the project's location within Victoria's South West Renewable Energy Zone is strategic, as such zones are typically established to concentrate renewable energy development, benefiting from economies of scale and supportive policies. The project's contribution to grid stability and system strength will be essential as Australia moves towards its clean energy transition goals, which could serve as a model for other regions globally. This project may also stimulate further investments in renewable infrastructure and technology, reinforcing the importance of energy storage in modern power grids.
MELBOURNE, Australia, Jan. 29, 2024 (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 Origin Energy Limited (Origin) to deliver a 300 MW / 650 MWh battery at the Mortlake Power Station in southwest Victoria.
The project will use Fluence’s Gridstack™ energy storage product with a 15-year service agreement contributing to Origin’s strategy to accelerate renewable energy and energy storage in its portfolio. The system will also utilise Fluence’s AI-powered asset performance management (APM) software, Nispera™, to optimise the battery’s operational performance.
“We are honored to be selected by Origin to deliver this grid-forming battery-based energy storage system and deploy our ecosystem of solutions,” said Fluence President and Chief Executive Officer Julian Nebreda. “Australia is an important market for Fluence. Our local team is now delivering over 1 GW energy storage projects within Australia to enhance grid stability and enable the country’s clean energy transition.”
The site preparation and civil works of the Mortlake Battery are expected to commence following a period of detailed design and procurement activity. The energy storage system is anticipated to be commissioned in late 2026.
Located in Victoria’s South West Renewable Energy Zone, this energy storage system will provide system strength to the grid. The system will capture excess power during periods of high renewable generation and discharge to meet peak demand.
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 Mortlake Battery project, expected timeline of the Mortlake Battery project, anticipated performance of Nispera, the anticipated contribution of the project on the grid and more generally, on the energy transition in Victoria and Australia. 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 Mortlake 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 Mortlake 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 Finance & Investor Relations
Email: investorrelations@fluenceenergy.com
Phone: +1 (713) 909-5629
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