In another step forward for the energy transition in Australia, AGL’s Liddell battery project has been announced as a successful applicant for funding from the Australian Renewable Energy Agency (ARENA).

As part of the Large Scale Battery Storage Funding Round, AGL and ARENA have started to negotiate terms for a formal Funding Agreement to support the delivery of the Liddell large scale battery.

Earlier this year AGL submitted a proposal to ARENA for funding to support the 250-megawatt (MW), 500 megawatt-hour (MWh) grid scale battery.

AGL’s Liddell battery would be built on the site of the Liddell coal-fired power station and will form an integral part of the integrated industrial energy hub planned for the site.

The Liddell battery will incorporate advanced inverters providing grid forming capabilities that improve the overall security of the energy system in NSW.

AGL Chief Operating Officer, Markus Brokhof said with one unit of Liddell power station already closed and the remaining units closing in 2023, AGL was already working to repurpose the site for construction of the battery.

“Reaching this next stage of negotiating formal terms for a funding agreement with ARENA is another exciting step towards delivering on the Liddell battery project and the development of the Hunter Energy Hub as we head toward a final investment decision on the battery,” Mr Brokhof said.

“As we move away from coal powered energy it is critical we invest and deliver on building firming capacity and demonstrate grid forming capabilities in the National Energy Market through projects like the Liddell battery.

“AGL is Australia’s leading private investor in renewable energy and the operator of the largest portfolio of renewable and battery assets of any ASX-listed company.

“As we execute our ambition to supply up to 12GW of renewable and firming capacity by 2036 we expect to bring forward more projects like the Liddell battery.”

The Hunter Energy Hub will see the site of the Liddell power station repurposed into an integrated hub which is envisaged to include the battery, a wind farm, a solar storage system, a waste-to-energy plant and a green hydrogen production facility with a number of partners already on board and progressing feasibility studies.

The Liddell battery project was granted approval by the NSW Department of Planning and Environment in April 2022 and as part of its Hunter Energy Hub, AGL aims to eventually develop an overall project incorporating two battery units comprising up to a total of 500MW/2GWh.