A state-owned utility in Australia has picked $Tesla(TSLA.US)$ Inc's TSLA.O Megapack batteries for a A$150 million ($113 million) energy storage project to back up wind and solar power, the state government of Queensland said on Wednesday.
Queensland's CS Energy plans to build the 100 megawatt battery storage project, which would be able to provide 200 megawatt hours (MWh) of power, next to its Kogan Creek coal-fired power station, looking to take advantage of existing transmission connections.
Construction at the growing energy hub is due to start later this year.
Utility-scale batteries are crucial for storing energy to be released when the sun is not shining or the wind is not blowing.
"These Tesla Megapacks are expected to be in place and operating by the end of next year," Queensland treasurer Cameron Dick said in a statement.
The battery will be part of an energy hub that will include a green hydrogen demonstration plant being built by Japan's IHI Corp 7013.T , with construction set to begin in September, CS Energy said last week.
A solar farm at the site will be used to power an electrolyser to split water, producing green hydrogen.
($1 = 1.3278 Australian dollars)
(Reporting by Sonali Paul; Editing by Rashmi Aich)