Energy and LPG giant Shell has chosen Cranbourne as the location for the company’s first big battery project.
Macquarie Asset Management’s Green Investment Group (GIG) and Shell Energy Operations (Shell Energy) are partnering to deliver a utility-scale battery energy storage system (BESS) in Cranbourne.
The grid-scale battery represents Shell’s push into cleaner energy.
Once fully operational, the 200-megawatt, 400-megawatt-hour battery will have the capacity to power the equivalent of 80,000 homes across Victoria for an hour during peak periods.
The project, to be built on two hectares of land within the Rangebank Business Park, has reached financial close and is expected to be completed in late 2024.
Shell Energy Australia chief executive officer Greg Joiner said he is looking forward to working with GIG to bring improved reliability to energy consumers in Victoria.
“The Rangebank project is our first grid-scale battery investment in Victoria and marks Shell’s first direct equity investment in a utility-scale BESS globally,” he said.
The project will increase Victoria’s renewable energy hosting capacity while providing essential system services aiming to support the safe, secure and reliable operation of Australia’s power system.
Through an offtake agreement, Shell Energy will have access to 100 per cent of the battery’s offtake over a 20-year period.
The partnership between GIG and Shell demonstrates how the combination of innovative offtake arrangements, when coupled with low-cost financing, can unlock the benefits of battery energy storage systems for end energy users.
“Grid-scale batteries are an essential element in the decarbonisation of the energy sector, and the need for storage solutions is growing rapidly,” said GIG global head of energy technology Greg Callman.
“GIG is delighted to partner with Shell Energy to deliver this project which will help provide communities with reliable and flexible energy.”
Located in one of Melbourne’s fastest-growing population centres, the Rangebank BESS will help to stabilise Victoria’s state electricity supply by providing additional storage capacity which can be discharged at times of peak demand.
The Rangebank BESS will be built, serviced, and maintained by Fluence, a global provider of energy storage products and services, and cloud-based software for renewables and storage, utilising Fluence’s latest Gridstack product.
“The Rangebank BESS project is another milestone for Fluence in Australia,” said Fluence APAC VP of sales, David Mikaeloff.
“We are thrilled to be able to partner with both GIG and Shell Energy Australia to deliver this important project.”
GIG and Shell Energy will continue to engage with local stakeholders as the project progresses.
