Shell Energy and GIG partner on 400MWh Rangebank BESS

Rendered image of the Rangebank battery (shell GIG)
Image: Shell Energy

Macquarie’s Green Investment Group (GIG) and Shell Energy are partnering to deliver a utility-scale battery energy storage system (BESS) in Cranbourne, Victoria.

Once fully operational, the 200MW/400MWh Rangebank BESS will have the capacity to power the equivalent of 80,000 homes across Victoria for an hour during peak periods.

Related article: Shell acquires 1GWh Wallerawang 9 battery project

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.

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.

GIG global head of energy technology Greg Callman said, “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.”

Shell Energy Australia CEO Greg Joiner said he was looking forward to working with GIG to bring improved reliability to energy consumers in Victoria.

Related article: $16.9 billion p/a opportunity for Australia’s battery sector

“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.

“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,” Joiner said.

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.

Previous articleIKEA owner Ingka accelerates Australian renewables push
Next articleFortescue inks hydrogen PPA with Norwegian energy giant