Altech Batteries Ltd (ASX:ATC, OTC:ALTHF) has executed a second offtake letter of intent (LOI) with Referenzkraftwerk Lausitz GmbH (RefLau), under which RefLau will purchase 30 MWh of CERENERGY® energy storage capacity in the first year, then 32 MWh per year thereafter for the next four years of production.
As part of the LOI, it was further agreed that Altech will purchase green electricity at competitive prices directly from the partners in the region for the planned production plant.
Growing demand
“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.”
RefLau is a joint venture between utility companies Enertrag SE and Energiequelle GmbH.
Green energy battery plant
Altech, Enertrag and Energiequelle plan to collaborate by using green electricity for Altech’s battery plant and potentially acquiring Altech’s CERENERGY® storage systems.
This would stabilise renewable energy output, ensuring continuous power and enabling hybrid power islands.
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.
They aim 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.
This then standardised solution is to be applied all over Europe for decentralised energy solutions.
These decentralised standalone energy solutions, referred to as an 'Energy Island', are capable to support — and be integrated into — the existing power grid and therefore are considered as the preferred, cost-effective solution.
Enertrag & Energiequelle, being leading utility and energy solution providers in Europe, 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, 32MWh in 2029-2031.
About the parties
RefLau, a joint venture involving Enertrag, Energiequelle and research institutions, aims to develop a reference power plant powered solely by renewable energy, including green hydrogen.
RefLau seeks to mitigate supply gaps from solar and wind intermittency, enhancing grid stability with sector coupling and battery storage solutions.
Enertrag SE is part of the Uckerwerk Energietechnik GmbH group and is a leader in renewable energy, specialising in wind turbines, solar power, and Power-to-Gas systems.
Headquartered in Brandenburg, Germany, Enertrag SE operates across Germany, France, Ghana, Namibia, Poland, Spain, South Africa, Uruguay, the UK and Vietnam, integrating battery storage solutions.
Energiequelle GmbH, headquartered in Zossen, Germany, with branches in multiple countries, focuses on renewable energy projects like wind, biomass and solar power.
The company aims to produce and market green hydrogen, partially converting it back to electricity. It plans a facility near Altech with wind, solar systems and a direct power line to RefLau.