Firmus announced a landmark 12-year wholesale energy supply agreement with Gunvor Group for 600 MW of firm electricity to support the next phase of Project Southgate, its strategy to develop large-scale AI Factory campuses across regional Australia.
Under the agreement, Gunvor will support the development of 1.2 GW of new renewable generation and 1.5 GWh of new battery storage by 2032 to supply Firmus' planned South Australian expansion.
The agreement also includes a demand response commitment under which Firmus will reduce its electricity consumption for up to 220 hours each year when wholesale electricity prices exceed agreed thresholds. By lowering demand during periods of peak grid stress, Firmus will help free up electricity for other users while easing pressure on wholesale prices.
The agreement underpins the first phase of Firmus' South Australian AI Factory campuses at Tailem Bend and Stirling North, representing 2.7 GW of planned capacity. It is the first major commercial agreement supporting the commitments set out in Firmus' Australian Energy and Water Policies, also released today.
The agreement includes a long-term offtake supporting GreenPoint Energy's Koolunga Battery Energy Storage System (BESS). Located near Brinkworth in South Australia's Mid North, the 200 MW / 800 MWh grid-forming battery will represent more than half of Firmus' initial firming capacity commitment.
The regional campuses are intended to bring long-term investment and skilled employment to South Australia while locating large industrial infrastructure in areas with strong renewable energy resources and existing transmission capacity.
Oliver Curtis, Co-CEO of Firmus Technologies
We're building our AI Factories in regional South Australia because they're the right locations for large-scale AI infrastructure and the energy investment that goes with it. Our South Australia energy agreement puts our commitments into practice, backing new renewable generation, major battery storage and flexible energy use that supports the grid. Koolunga is the first example of that commitment already underway—a major new battery that strengthens the electricity system while we build. This is about investing in regional South Australia—creating new infrastructure, supporting local jobs and strengthening the electricity system while building the capacity Australia needs for the next generation of AI. We're committed to paying our own way and ensuring these projects deliver lasting benefits for the communities that host them.
The Hon. Peter Malinauskas MP, Premier of South Australia
South Australia is leading the clean energy transition, and this project demonstrates how that leadership is attracting the industries of the future. It recognises the strategic importance of advanced AI and digital infrastructure to the State’s economic future, bringing new jobs, new investment, and long-term opportunities to regional South Australia.
David Maher, Head of APAC Power Trading & Origination, Gunvor
This transaction demonstrates how long-term customer demand can help unlock renewable supply, firming and risk management through a single commercial solution. As AI and digital infrastructure continue to develop in Australia, we believe models like this can support investment in new generation and storage while delivering reliable and flexible supply outcomes. We look forward to continuing to work with Firmus.
