State backs global big battery heavyweight to put down deeper roots in Australia

Global energy technology giant Fluence has announced an expansion to its Australian headquarters in Melbourne, backed by “financial assistance” from the Victorian Labor government.

The move, expected to create an additional 100 jobs, was announced by Victoria’s minister for economic growth, Danny Pearson, as a boost to the local battery storage technology industry and supply chains.

Fluence, initially established as a private joint venture between Germany’s Siemens and US’ AES Corporation, is now publicly listed on the Nasdaq Global Select Market with the closure of an almost US$1 billion initial public offering (IPO) during 2021.

Since its founding in 2018, the company claims to have built its operational and contracted global BESS portfolio to a monstrous 37.7GWh. The company counts Australia as its second largest market outside the US, including several major projects in Victoria’s Latrobe Valley.

Fluence first deployed its proprietary Gridstack BESS units in Australia for French multinational developer Engie and Eku Energy, known as the Hazelwood Big Battery, at one of the country’s largest shuttered coal plants. 

The Australian portfolio also includes an 100MW/200MWh BESS located in Morwell, Victoria under development by Tilt Renewables. Fluence will deploy and maintain its BESS technology under a 20-year service agreement.

During February of this year, Fluence unveiled its latest BESS offering to the market, hailing it as one of the highest-density energy storage units available.

Alongside two and four discharge durations, the Smartstack technology will also offer customers up to six and eight hours of discharge. Fluence hopes to commence delivery of the new units as soon as the final quarter of this year.

“Fluence’s expansion in Melbourne is a strong vote of confidence in our energy transition, creating jobs and helping lower energy bills,” state energy minister Lily D’Ambrosio said in a statement on Friday.

Fluence Australia general manager Jason Beer said the company welcomed the Victorian government’s “continued commitment to renewable energy solutions and Fluence’s growth in Australia.”