SYDNEY–AGL Energy, a leading power company in Australia, has announced its plans to construct a large-scale battery on the site of the retired Liddell Power Station. This development marks a significant step in AGL’s transition away from coal-fired generation, as the company focuses on a more sustainable energy future.
AGL’s final investment decision for the Liddell battery project, located in New South Wales, has been reached. The estimated construction cost for this grid-forming initiative is AUD 750 million (USD 503 million), with an expected completion date in mid-2026.
The battery, which will have a capacity of 500 megawatts, will be situated on the former Liddell Power Station site. This power station operated for almost 52 years before ceasing its operations in April of this year. AGL plans to finance the project using its balance sheet, operating cashflows, and existing debt facilities. Additionally, the Australian government’s renewable energy agency will provide a generous grant of AUD 35 million.
Commenting on the final investment decision, AGL’s Managing Director and CEO, Damien Nicks, emphasized the significance of the Liddell battery project in the company’s decarbonization journey and energy portfolio transition.
In fiscal year 2023, AGL reported a net loss of AUD 1.26 billion, primarily due to impairments associated with expedited closure plans for another coal facility by up to 10 years. This strategic reset aligns with AGL’s commitment to accelerate its decarbonization efforts. Earlier, the company abandoned its proposal to separate its power-generation business from its retail arm following opposition from shareholders, including Atlassian co-founder, Mike Cannon-Brookes.