Queensland’s state-owned generator, Stanwell, has secured exclusivity over a significant energy storage project that aims to establish Australia’s largest battery, exceeding 6 gigawatt-hours. The agreement involves a Memorandum of Understanding (MoU) with Quinbrook Infrastructure Partners for the proposed Gladstone State Development Area (GSDA) Energy Hub Project. This initiative is described as a “multi-technology renewables firming and grid resiliency solution” and will be developed in stages.
The ambitious project will feature a 780 megawatt battery energy storage system (BESS) capable of storing energy for up to eight hours, along with 1,080 megawatts of open-cycle gas turbines integrated with synchronous condensers. The facility will be located approximately 7 kilometers from Mount Larcom and 25 kilometers from Gladstone. This partnership was initially announced last month, highlighting a shared vision for what both companies claim is the first “true” eight-hour battery, the EnerQB BESS, to be built at the Stanwell Power Station.
This new battery project, if completed as planned, would surpass Quinbrook’s own Supernode battery project near Brisbane, which has already secured contracts for over 3,000 MWh and is set to expand its capacity to over 5,000 GWh with an additional 250 MW and 2,000 MWh of storage.
Supporting Queensland’s Energy Transition
The combination of flexible gas turbines with long-duration batteries and synchronous condensers marks a pioneering step for Australia’s National Electricity Market (NEM). The GSDA Energy Hub is designed to enhance network reliability and provide critical power system services in Queensland, particularly during peak demand, unexpected outages, or low solar and wind generation periods.
For Stanwell, this collaboration signifies a major source of “affordable and reliable energy,” especially as the company had previously anticipated retiring its coal power generation plants by 2035 under the previous state government’s energy plan. The current administration, led by the Liberal National Party, has indicated a desire to extend the life of aging coal plants while reducing support for renewable energy projects.
Despite this political landscape, Stanwell is committed to integrating innovative configurations of new and existing energy assets to support Queensland’s heavy industries as the state navigates a future less reliant on coal. “This agreement provides Stanwell with exclusivity to negotiate commercial arrangements to facilitate the GSDA Energy Hub Project,” stated Michael O’Rourke, CEO of Stanwell, emphasizing the company’s focus on delivering reliable energy in response to increasing demand.
Investment and Innovation in Energy Storage
Quinbrook’s CEO, Brian Restall, highlighted that this deal showcases Queensland’s ongoing attractiveness as a destination for energy transition investments, even amidst shifts in government policy. “Our ongoing partnership with Stanwell demonstrates our shared commitment to delivering affordable, reliable, and sustainable energy for the Sunshine State,” Restall remarked.
In an October media briefing, David Scaysbrook, managing partner at Quinbrook, outlined the company’s strategy to invest in long-duration “infrastructure batteries.” These batteries are designed to harness inexpensive renewable energy and support large industrial operations. “The type of batteries that Quinbrook does are contracted for 15-20 years,” he explained, noting that partnerships with established companies like Stanwell and others are critical for utilizing these batteries effectively.
Quinbrook’s collaboration with the Chinese battery giant CATL has facilitated lower construction costs compared to some competitors. Scaysbrook emphasized the rapid advancements in battery technology, stating, “When you look at the technology improvement curve of batteries, even over the next two to three years, it’s nothing short of breathtaking.”
The combination of abundant solar energy and advanced storage solutions positions Queensland as a key player in the renewable energy landscape. With approximately 320 sunny days annually, the potential for cost-effective energy generation is substantial. Quinbrook aims to create a large-scale solar-battery hybrid that offers competitive energy pricing without reliance on government subsidies.
As the energy landscape evolves, Queensland’s strategic investments in renewable resources and energy storage technology reflect a commitment to a sustainable future, ensuring reliable power supply for its residents and industries alike.
