Queensland backs iron flow battery technology for Australia’s first grid scale manufacturing facility

Brisbane-based iron flow battery manufacturer Energy Storage Industries has secured investment worth $65 million to build Australia’s first manufacturing plant for grid-scale batteries. 

Queensland’s Labor government announced on Tuesday that it would invest $25 million in ESI, which helped attract a further $40 million investment an unnamed UK-based investment fund.

The influx of cash, made up of a mixture of debt and equity investment, has allowed ESI to ramp up construction of a $70 million manufacturing facility in Maryborough, in the Fraser Coast region.

Early works have already begun at the Maryborough, with the foundations expected to be laid in coming weeks, and full operations to be underway by mid-2029 – however, ESI is targeting first production some time in 2025.

“ESI is a Queensland-based, Australian-owned manufacturer of proven grid-scale battery technology that solves a key problem in the energy transition – how to provide renewable grid-scale energy overnight,” said Stuart Parry, ESI managing director.  

“Thanks to this far-sighted support from Treasury and private investors, the first production of Queensland-made grid-scale batteries will take place by the end of 2025.”

“ESI is targeting the delivery of 400 megawatts (MW) of energy storage annually from 2029 – enough to power a city the size of Toowoomba each year. Importantly, key battery components will be sourced from throughout Queensland, supporting businesses and creating skilled jobs in local communities.”

ESI’s iron flow batteries comprise iron, salt, and water chemistry, and offer between 8 to 12 hours of storage. Able to be deployed in either containers or in a large-scale grid-connected warehouse, the module design allows for 400kWh to 1GWh+ installations.

ESI boasts that its iron flow battery technology is non-flammable, non-toxic, entirely recyclable, and suitable for use in sensitive landscapes such as national parks and the Great Barrier Reef, as well as residential areas.

“By partnering with local industry and attracting private capital, Queensland is well-placed to seize the incredible opportunities presented by the world’s decarbonisation,” said Cameron Dick, deputy Queensland premier, treasurer, and minister for trade and investment.

“Our investment in ESI is part of our commitment to firmly establish a new battery manufacturing industry right here in Queensland.

“Through investments like this we meet our own future clean energy storage needs and take advantage of the massive export opportunities.

“Most importantly, this investment supports new technology and manufacturing jobs, creating more than 270 highly skilled jobs in regional Queensland.”

The news comes virtually a year after Queensland state owned generation company Stanwell signed a partnership with ESI to build a 150MW battery installation by the end of the decade.

This followed the August 2023 announcement between the two companies that would establish a 1MW/10MWh iron flow battery storage system adjacent to the Stanwell Power Station.