Firmus secures 600MW energy supply agreement in South Australia

Firmus has signed a 12-year, 600MW wholesale energy supply deal with Gunvor Group 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 aim to 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.

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.

“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,” said Firmus co-chief executive, Oliver Curtis.

“Our South Australia energy agreement puts our commitments into practice, backing new renewable generation, major batter y storage and flexible energy use that supports the grid. Koolunga is the first example of that commitment already under way—a major new battery that strengthens the electricity system while we build.”

David Maher, head of APAC power trading and origination at Gunvor, said 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," he said.

At the end of last month, Firmus announced it is partnering with NVIDIA in a compute partnership set to run through to 2034, with the deal anchored by a 360MW NVIDIA DSX AI factory campus in Batam, Indonesia.