AGL reaches milestone on 2 GWh Tomago battery

AGL has broken ground on its $800 million (USD 530.8 million) Tomago battery project being built in the New South Wales (NSW) Hunter region, saying the four-hour duration energy storage system will support more renewable energy generation in the region and enhance grid stability.

Being constructed near Raymond Terrace, about 20 kilometres northwest of Newcastle and within the Hunter-Central Coast Renewable Energy Zone, the Tomago project will store energy from the electricity grid during low-peak periods and then quickly ramp up or down depending on electricity demands.

“With operations targeted for the second half of 2027, the Tomago battery project will play an important role in supporting reliable electricity supply for our NSW customers and strengthening the state’s energy future,” AGL said.

United States-based energy storage systems supplier Fluence has been appointed as the engineering, procurement and construction (EPC) contractor.

The project is expected to support up to 200 jobs during the construction phase and up to six ongoing jobs when operational.

AGL said the start of construction marks a major milestone in its strategy to deliver 12 GW of new renewable energy generation and firming capacity by the end of 2035.

“This project represents a major milestone for our business and an important step forward for the Hunter region and the broader NSW energy system,” AGL Chief Operations and Construction Officer Matthew Currie said.

“We’re also excited to continue our partnership with Fluence on this project, leveraging their expertise from our 500 MW Liddell battery, which remains on track to commence operations in early 2026.”