Neoen and Tesla select UGL to build six-hour Muchea battery

Neoen and Tesla select UGL to build six-hour Muchea battery
The site will provide essential peak demand energy capacity and grid stability, enabling the integration of more renewable energy into the network.

UGL, a member of the CIMIC Group, has been selected to construct a 164MW / 905MWh Muchea Battery north-east of Perth in WA for Neoen in partnership with Tesla.

Muchea Battery is Neoen’s first six-hour long-duration storage asset and will be equipped to support the WA’s energy reliability and transition to renewables.

UGL has been contracted to help prepare the site for the installation and connection of 252 Tesla Megapack 2XL units and to design and construct a 132kV substation, including the installation of high-voltage infrastructure, control and switchroom facilities, earthworks and footings.

ACS Group and HOCHTIEF chief executive and CIMIC Group executive chairman Juan Santamaria says the contract is another milestone in the groups’ commitment to enabling Australia’s energy transition.

“CIMIC and ACS Group are strategically focused on building the infrastructure that underpins a low-carbon future — from renewable generation and storage to transmission and advanced technology,” he said.

“Our work with Neoen and Tesla reflects the trust placed in our capabilities and our shared ambition to accelerate clean energy outcomes.”

Following installation, UGL will provide testing and commissioning support.

This project comes immediately after UGL’s successful delivery of Neoen’s 341MW / 1,363MWh Collie Battery 2, also located in WA.

Collie Battery 2 has commenced operations four months ahead of schedule.

UGL managing director Doug Moss says UGL is pleased to add this significant project to its expanding portfolio of energy infrastructure across Australia.

“Muchea Battery will be our ninth battery installation project and out sixth one for Neoen and in partnership with Tesla,” he said.

“We’re supporting the energy transition through high-voltage transmission upgrades, regional electricity fortification and the delivery of firming assets that strengthen the grid.”

UGL has delivered 19 major renewable generation and storage projects across Australia, including five flagship big batteries for Neoen: Victorian Big Battery, Western Downs Battery 1, Collie Battery 1 and 2, and the Western Downs Battery 2 which is currently under construction.

Construction work on site for Muchea Battery will commence this month and is expected to finish in CY27.