AGL begins construction of 2 GWh Tomago battery in $530 mn project

Australian energy company AGL has initiated construction of its large-scale battery storage project in the Hunter region of New South Wales. Located in Tomago, near Raymond Terrace, the facility will have a capacity of 500 megawatts (MW) with four-hour storage duration, amounting to a total of 2,000 megawatt-hours (MWh). The project represents an investment of AUD800mn ($530.8mn), according to information provided by the company.

A strategic infrastructure in a designated priority zone

The site is located within the Hunter-Central Coast Renewable Energy Zone, a region identified as critical for energy infrastructure development in the state. The system will store excess electricity from the grid during low-demand periods and discharge power based on demand. Commissioning is scheduled for the second half of 2027.

AGL states the facility will help ensure electricity supply for its customers in New South Wales and improve regional grid stability. The initiative forms part of the company’s strategy to develop 12 gigawatts (GW) of new renewable generation and firming capacity by 2035.

Industrial partnership and local job creation

The engineering, procurement and construction (EPC) contract has been awarded to Fluence, a US-based energy storage technology provider. This project continues the partnership between AGL and Fluence, who are also collaborating on the 500 MW Liddell battery, expected to be operational in 2026.

Up to 200 jobs are expected during the construction phase, while six permanent roles will be created once the facility becomes operational. AGL describes this development as a significant step in its long-term energy transformation roadmap.

“This project represents a major milestone for our business and a significant development for the Hunter region’s energy system,” said Matthew Currie, Chief Operations and Construction Officer at AGL.