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New Energy World
New Energy World embraces the whole energy industry as it connects and converges to address the decarbonisation challenge. It covers progress being made across the industry, from the dynamics under way to reduce emissions in oil and gas, through improvements to the efficiency of energy conversion and use, to cutting-edge initiatives in renewable and low carbon technologies.
Shell is making its first direct equity investment in a grid-scale battery anywhere in the world, partnering with Macquarie to deliver a utility-scale battery energy storage system (BESS) in Australia.
The 200 MW/400 MWh Rangebank BESS will be located in Cranbourne, on the south-eastern outskirts of Melbourne, Victoria. Once operational in late 2024, the battery will help stabilise Victoria’s electricity supply by providing additional storage capacity that can be discharged to power the equivalent of 80,000 homes across the state for an hour during peak periods of demand, according to project partners Shell Energy and Macquarie Asset Management’s Green Investment Group (GIG).
Through an offtake agreement, Shell Energy will have access to 100% of the battery’s offtake over a 20-year period.
Commenting on the development, Greg Callman, Global Head of Energy Technology, GIG says: ‘Grid-scale batteries are an essential element in the decarbonisation of the energy sector, and the need for storage solutions is growing rapidly. This project will help provide communities with reliable and flexible energy.’
Shell Energy Australia Chief Executive Officer Greg Joiner adds: ‘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.’
The project is also supported by minority equity partner Perfection Private.
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.
GIG’s interest in the project is planned to be transferred to Eku Energy, a global battery storage platform which was established by GIG in 2022 to provide 4 GWh of digitally enabled, flexible, utility-scale storage projects in key markets around the world, including the UK, Australia, Japan and Taiwan.
Although Rangebank is Shell’s first grid-scale battery project to reach financial close, the company is also reportedly planning to build even bigger batteries (~500 MW/1,000 MWh) at Wallerewang and Wellington, both in New South Wales. According to RenewEconomy, Shell Energy is looking to roll out one new battery a year for the next few years as the grid energy mix switches rapidly towards renewables and storage.
Shell Energy says that ‘the energy landscape in Australia is transforming’, highlighting forecasts that grid-scale solar and wind developments are set to increase nine-fold from current levels by 2050, and household solar PV by a factor of five. Alongside the projects noted above, the company is also investing in renewable generation in the country, including:
- A 50% stake in Kondinin Energy on a wind, solar and BESS development with Foresight Group.
- A 49% investment in Australian wind farm developer, WestWind.
- The 120 MW Gangarri solar project located in Queensland’s Western Downs region.
- A 49% stake in Australian solar developer, ESCO Pacific.
