Altech Batteries secures offtake intent from European green hydrogen JV

Altech Batteries signs second letter of intent agreement
The agreement has been executed with Referenzkraftwerk Lausitz GmbH (RefLau)
RefLau has purchased offtake for 30MWh in first year before rising to 32MWh in subsequent years

Special Report: Altech Batteries has executed its second offtake letter of intent, this time with green hydrogen joint venture RefLau for 30MWh of CERENERGY energy storage capacity in the first year.

Under this offtake letter of intent (LOI), RefLau – a JV between European utility and energy companies Enertrag SE and Energiequelle GmbH – will then purchase 32MWh of CERENERGY® energy storage capacity per year thereafter for the next four years of production.

As part of the LOI, it was further agreed that Altech Batteries (ASX:ATC) will purchase green electricity at competitive prices directly from the partners in the region for the planned production plant.

And Altech, Enertrag and Energiequelle plan to collaborate further by using green electricity for Altech’s battery plant.

This would stabilise renewable energy output, ensuring continuous power and enabling hybrid power islands (explained further below).

In 2020, Germany’s Bundestag and Bundesrat passed laws to phase out coal, compensating the lignite industry and supporting structural changes.

The partners are focusing on developing the Schwarze Pumpe industrial park as a pilot for standardised clean energy projects across Europe and beyond.

Deliveries to begin in Q4

Enertrag and Energiequelle plan to purchase CERENERGY® GridPack batteries from Altech with deliveries anticipated to begin in Q4 2026.

The purchase includes a 30MWh target for 2027 and discounts based on electricity supply agreements with performance guarantees.

Preliminary purchase targets are 30MWh in 2027, 32MWh in 2028 and 32MWh in 2029-2031.

Together, the three companies plan to negotiate electricity contracts to power Altech’s planned battery plant with green energy from Enertrag and Energiequelle’s facilities.

The partnership aims to develop a standard hybrid power island using 80MW of solar and wind energy, incorporating 32 Altech CERENERGY® 1MWh GridPacks, with Enertrag and Energiequelle purchasing the storage units.

The aim is for this standardised solution to be applied all over Europe for decentralised energy solutions, capable of supporting and being integrated into the existing power grid, and presenting as the preferred, cost-effective solution.

RefLau also plans to purchase 10MWh CERENERGY® GridPack batteries for its plant in Schwarze Pumpe.

ATC says this will help to form a close working relationship between the companies, enabling Altech to enter the important hydrogen business segment in which conventional lithium-Ion batteries cannot be applied due to their safety risk.

First two years of production accounted for

“The interest shown by RefLau in Altech’s technology is a clear signal of growing demand for innovative energy storage solutions, particularly as industries shift toward 100% renewable energy,” Altech CEO Iggy Tan said.

“It’s encouraging to see potential customers like RefLau recognising the value of our scalable and reliable battery systems.

“This second Letter of Intent marks a significant milestone for Altech Batteries as it represents our second offtake agreement for the CERENERGY® GridPack Battery Energy Storage System and more so means that the first two years of production is spoken for and 50% of the three following years”.

This article was developed in collaboration with Altech Batteries, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.