Shell Energy has bought the development rights to a 500MW/1000MWh battery energy storage system (BESS) project in Australia.

The deal gives Shell the rights to build, own and operate the Wallerawang 9 Battery project subject to a final investment decision (FID).

The project will be built at the former Wallerawang Power Station site near Lithgow, New South Wales (NSW).

Shell Energy CEO Greg Joiner said: “Battery energy storage has a vital role to play in the energy transition by supporting renewable generation and contributing to improved reliability for the grid and consumers.

“Shell Energy is proud to take an important step forward in NSW’s energy future, particularly in helping regional communities such as Lithgow continue to play a role when energy is increasingly decarbonised.”

Following the deal, Shell will become the first tenant at the repurposed Wallerawang Power Station, which Greenspot is developing as a master-planned multi-use precinct and centre of economic growth.

Greenspot is a privately owned group in NSW that was created to acquire and repurpose property assets, most of which are from the fossil fuel industry.

The group has obtained development approval for the Wallerawang 9 Bess project, which will be linked to the adjacent Wallerawang Substation.

The 330kV Wallerawang Substation was previously used to transmit coal-fired electricity generation to the grid.

Shell Energy will provide the grid connection process for the BESS project, building and operating the battery on a 20ha site leased from Greenspot.

Greenspot CEO Brett Hawkins said: “The greater Lithgow region has contributed to powering NSW for nearly 70 years.

“Shell is building a significant renewable energy portfolio in Australia and we look forward to working with Shell on Wallerawang 9 to make this a success for the Greenspot precinct and the Lithgow region more broadly.”