Altech Batteries Ltd (ASX:ATC, OTC:ALTHF) has executed an offtake letter of intent with Zweckverband Industriepark Schwarze Pumpe (ZISP), validating the commercial potential of the company's CERENERGY® energy storage technology and supporting its future growth strategy.
Under the offtake letter of intent (LOI), ZISP — which oversees the Schwarze Pumpe Industrial Park, managing its water, waste, road infrastructure and energy needs — will purchase 30MWh of energy storage capacity annually, consisting of 1MWh GridPacks, for the first five years of production.
The price of these batteries has been agreed and aligned to Altech’s definitive feasibility study assumptions.
The company expects GridPack deliveries to start by mid-2027, or when the plant is ready. Altech notes that ZISP’s purchase of these batteries is subject to performance tests, battery specifications and the batteries meeting customer requirements.
The LOI also highlights both parties' commitment to work together to change the energy landscape of the Schwarze Pumpe Industrial Park by transitioning it entirely from coal to renewable energy.
A combination of wind, solar, and Altech’s CERENERGY® GridPack Battery Energy Storage System (BESS) will ensure continuous power supply, even during low energy generation or outages.
Altech CEO Iggy Tan said: “This letter of intent marks a significant milestone for Altech Batteries as it represents our first offtake agreement for the CERENERGY® GridPack Battery Energy Storage System.
“The interest shown by the Schwarze Pumpe Industrial Park Association (ZISP) in our technology is a clear signal of growing demand for innovative energy storage solutions, particularly as industries shift toward 100% renewable energy.
“It's encouraging to see potential customers like ZISP recognise the value of our scalable and reliable battery systems. This LOI not only validates the commercial potential of our CERENERGY® technology but also supports our future growth strategy, as securing such agreements strengthens Altech’s position for project financing and expansion.
“We're excited to continue working closely with ZISP, and we believe this partnership will pave the way for future demand as the industrial park moves toward a green energy future.
"With the first delivery expected mid-2027, this agreement is just the beginning of what we expect will be a significant increase in battery demand.”
Key terms of the agreement
- start of deliveries from the 120 MWh plant from mid-2027 or later as per project development;
- technical data and guarantees according to the attached data sheet;
- price per GridPack at standard market conditions;
- purchase volume 30MWh per annum for five years, being 2027 through 2031;
- the parties intend to develop a detailed acceptance contract subject to the performance data and warranty to be met by Altech;
- an option for additional delivery volumes at a later date is negotiable; and
- both parties will jointly develop a business and technical partnership to deliver scalable energy solutions, with contracts to be finalised in early 2025.