GIG, Shell Energy To Deliver 200MW Australian Energy Storage System

Green Investment Group (GIG) and Shell Energy Operations (Shell Energy) have partnered to deliver a utility-scale battery energy storage system (BESS) in Cranbourne, Victoria. GIG belongs to Macquarie Asset Management.

GIG said that once fully operational, the 200MW / 400MWh Rangebank BESS will have the storage 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 in Melbourne’s southeast, has reached financial close and is expected to be completed in late 2024.

Developed by GIG and Shell Energy, 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% of the battery’s offtake over a 20-year period.

“Grid-scale batteries are an essential element in the decarbonisation of the energy sector, and the need for storage solutions is growing rapidly. GIG is delighted to partner with Shell Energy to deliver this project which will help provide communities with reliable and flexible energy,” said, Greg Callman, Global Head of Energy Technology, GIG.

Greg Joiner, CEO of Shell Energy Australia, stated, "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. This signals Shell Energy’s commitment to accelerating the energy transition and contributing to growth of firming capacity.”

The GIG and Shell storage project is also supported by minority equity partner Perfection Private. The 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.

GIG also said that its interest in the project will transfer to Eku Energy, a global battery storage platform which was established by GIG in 2022.

Energy storage systems are necessary for the success of renewable energy expansion in the continent country. Last year, AGL Energy Ltd announced that it will construct 500MW/2,000MWh battery energy storage system (BESS) as part of the Hunter Energy Hub in New South Wales. Similarly, Sungrow has to supply a fully integrated 55MW/220MWh Battery Energy Storage System (BESS) to Global Power Generation (GPG).

Ampyr Australia and Shell Energy will also be together developing a 1000MWh Wellington BESS in Central West New South Wales.