24 Sep 2024

Queensland has officially broken ground on Australia’s—and the southern hemisphere’s—largest iron‑flow battery manufacturing complex: a 3.2 GWh‑per‑year facility on the outskirts of Maryborough. Backed by a $440‑million state‑government capital injection and a federal clean‑energy loan guarantee, the plant will mass‑produce long‑duration iron‑electrolyte flow batteries designed to store renewable energy for eight to 12 hours at roughly half the lifetime cost of lithium‑ion alternatives. Construction begins this week, with commissioning slated for late 2026. The project will create 680 construction jobs, 320 permanent advanced‑manufacturing roles, and produce enough annual storage to back up roughly 1.5 GW of new solar and wind on the National Electricity Market.

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Why iron‑flow batteries, and why now?

Lithium‑ion cells have dominated stationary storage build‑outs for a decade, yet their chemistry was optimised for power density and weight—critical for electric vehicles but over‑engineered for fixed plants. Flow batteries flip the script: energy is stored in liquid electrolytes housed in industrial tanks, while the electro‑chemical conversion occurs in a separate stack. By separating power (the stack) from energy (the tank volume), flow batteries scale cheaply: doubling storage duration only requires bigger tanks, not double the entire battery pack.

Iron‑flow in particular uses abundantly available, non‑toxic iron sulphate—the same compound used in water treatment—rather than pricey vanadium or lithium. Materials costs sit below AU $20 per kWh of capacity, and service life exceeds 25 years with zero thermal‑runaway risk. In an era of soaring lithium prices and mounting safety regulations, iron‑flow offers a long‑duration, fire‑safe alternative tailor‑made for Australia’s renewables‑heavy grids that increasingly swing from midday solar surpluses to evening deficits.

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Anatomy of the Maryborough project

 

Four production halls will fabricate plastic‑lined steel tanks, ion‑exchange membranes and bipolar plates; assembly lines then integrate pumps, sensors and power‑conditioning equipment into 500 kW containerised flow modules. A dedicated electrolyte plant on the same campus will source iron sulphate from local mine tailings, closing a mining‑waste loop. Fifteen megawatts of rooftop solar plus a behind‑the‑meter wind PPA will supply 100 % renewable electricity to the factory.

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Economic ripple‑effects for Wide Bay – Burnett

Maryborough’s manufacturing pedigree dates to locomotive workshops in the 1890s, yet the region has battled de‑industrialisation for decades. The battery project reverses that trend:

• Jobs: 680 peak construction workers and 320 ongoing high‑skill roles—chemical engineers, electricians, membrane technicians.

• Training pipeline: TAFE Queensland will run a new Certificate III in Flow‑Battery Manufacturing, the first of its kind globally.

• Local content: Over 65 % of capital expenditure is expected to flow to Queensland suppliers—steelworks in Gladstone, electronics from Brisbane, plastics moulders on the Sunshine Coast.

• Export upside: Finished modules will ship via the Port of Bundaberg, targeting Pacific Island microgrid projects hungry for cyclone‑resilient storage.

A Deloitte study commissioned by Trade & Investment Qld estimates AU $1.8 billion in gross regional product over the plant’s first decade.

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Technical deep‑dive: how iron‑flow stacks up

 

While iron‑flow loses roughly 10‑15 percentage points in efficiency, it gains on economics through ultra‑long life and low marginal energy costs. When co‑located with solar or wind expected to spill kilowatt‑hours, energy efficiency becomes less critical than cheap, safe megawatt‑hours stored overnight.

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Integrating with Queensland’s 80 %‑renewables target

Queensland’s Energy and Jobs Plan aims for 80 % renewable penetration by 2035—up from 25 % today. Modelling by AEMO’s Integrated System Plan shows the state will need at least 15 GW / 60 GWh of storage to firm a quadrupled solar‑plus‑wind fleet. The Maryborough factory’s 3.2 GWh annual output could single‑handedly satisfy about 5 % of that 2030 build‑rate.

Long‑duration storage tackles the “evening peak.” During a winter’s day, rooftop PV floods the grid at lunch, driving wholesale prices negative. As the sun sets, demand peaks just as PV fades. Lithium four‑hour batteries cover the shoulder but empty by 8 pm; flow batteries keep discharging deep into the night, shaving fossil‑fuel ramping costs.

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Environmental and circular‑economy credentials

• Non‑toxic chemistry: Iron, salt and water—no cobalt, nickel or flammable solvents.

• Local sourcing: 80 % of electrolyte mass derives from recycled iron sulphate pulled from legacy tailings, reducing waste‑dam leachate.

• End‑of‑life strategy: Electrolyte is reusable; tanks and stacks are fully recyclable steel and plastic. ESS will operate a take‑back program to refurbish or recycle modules.

• Low embodied CO₂: Internal lifecycle analysis indicates 45 kg CO₂‑equivalent per kWh—roughly one‑quarter that of imported lithium‑ion systems.

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Policy backdrop and funding rationale

Queensland Treasury justified its AU $210 million equity stake under the Jobs and Regional Growth Fund, citing:

1. Strategic supply chain: COVID‑era shipping shocks exposed Australia’s dependence on imported batteries.

2. Grid resilience: Long‑duration storage is essential to stabilise the NEM as coal exits (Tarong A retires 2028, Callide B 2029).

3. Climate commitments: Queensland legislated a 75 % emissions‑cut target by 2035; flow batteries displace peaking gas.

4. Export potential: Australia already exports iron ore; value‑adding through iron‑electrolyte technology captures downstream margins.

The Clean Energy Finance Corporation’s concessional loan is contingent on hitting local‑content thresholds and rolling out a worker‑transition program for employees exiting coal generators.

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National implications

Maryborough is the third flow‑battery factory announced in Australia, but the first to reach physical ground‑breaking:

• Energy Renaissance (lithium‑ion), Tomago NSW: 0.7 GWh pilot line operational.

• VSUN vanadium‑flow, Kwinana WA: 0.2 GWh stack plant approved, construction pending.

Iron‑flow’s 3.2 GWh scale eclipses both, signalling Australia’s entry into the global long‑duration storage race alongside Form Energy and ESS Inc. BloombergNEF predicts flow batteries could capture 23 % of stationary storage installs by 2030 if cost curves hold.

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Challenges and open questions

1. Capex discipline: First‑of‑a‑kind projects carry cost‑overrun risk; holding to budget requires tight procurement.

2. Market incentives: Current NEM rules undervalue storage beyond four hours. Capacity‑investment reforms must pass Senate to guarantee revenue.

3. Supply of membranes: Ion‑exchange membranes are 20 % of system cost; domestic production is still nascent.

4. Public perception: Flow batteries are unfamiliar; community‑engagement programs will need to demystify the technology.

5. Emerging competition: Sodium‑ion, zinc‑bromine and iron‑air players all jostle in the long‑duration niche—success hinges on execution pace.

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Construction timeline and what to watch next

 

Watch for additional purchase agreements from state utilities, grid‑service registrations, and the outcome of AEMO’s Long‑Duration Storage Market consultation due March 2025.

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Conclusion

Maryborough’s iron‑flow battery factory is more than bricks, tanks and cranes—it’s a pivot point in Australia’s clean‑energy story. By marrying abundant raw materials with home‑grown engineering, Queensland is staking a claim in the next wave of energy storage, one that prizes safety, longevity and circularity over quick‑turn profit cycles. If timelines hold, the Wide Bay region could soon export not just sugarcane and timber, but gigawatt‑hours of liquid sunshine—bottled in iron and water—ready to firm the grid from Broome to Ballarat. The real‑world test begins now, bulldozers rumbling where paper plans once sat. Keep your eye on Maryborough: Australia’s energy future just broke ground.