AGL Energy has started construction on a battery project in Tomago, Australia.

The 500 MW grid-scale battery will have a 4-hour duration and is estimated to cost AUD $800 million (USD $526M).

To mark this milestone, the ground was broken by AGL CEO and Managing Director, Damien Nicks, and Chief Operations and Construction Officer, Matthew Currie.

Federal and State MPs also joined the ceremony, including Minister for Climate Change and Energy, Chris Bowen, and Minister for the Hunter, Yasmin Catley, as well as local council and community members to mark the occasion.

Commencement of operations is scheduled for the second half of 2027.

The battery has the potential to improve the reliability of the grid by storing power for use when energy demand exceeds generation.

The project will play an important role in supporting reliable electricity supply for customers and strengthening the state’s energy future.