Australian AI cloud developer Firmus Technologies has signed a 12-year, 600 MW wholesale energy supply agreement with commodity trader Gunvor Group, underpinning 1.2 GW of new renewables and 1.5 GWh of battery storage that will power Firmus' South Australian AI Factory campuses. The deal, reported July 1, is the biggest single power contract yet inked for AI compute in the country and lands the crucial first anchor for Gunvor's 200 MW / 800 MWh grid-forming Koolunga BESS near Brinkworth in South Australia's Mid North.
Anchoring Project Southgate
The agreement underwrites the first phase of Project Southgate, Firmus' plan for large-scale AI Factory campuses at Tailem Bend and Stirling North in regional South Australia, representing 2.7 GW of planned capacity. Firmus — vertically integrated from model to grid and combining proprietary immersion cooling with AI cloud services across the Asia Pacific — needs firm renewable power to hit both cost and carbon targets. Gunvor commits to develop 1.2 GW of new solar and wind alongside 1.5 GWh of storage by 2032 under the pact.
Koolunga BESS Gets Its Anchor Offtake
The centrepiece is Gunvor's Koolunga battery: a 200 MW / 800 MWh grid-forming lithium-ion system developed through subsidiary GreenPoint Energy. Firmus' long-term offtake locks in a base of revenue while the wider capacity is dispatched into South Australia's wholesale market — one of the highest-renewables grids in the world, where dispatchable capacity commands a growing premium. The 800 MWh Koolunga plant accounts for over half of the total 1.5 GWh battery build associated with the deal.
A Demand-Response Twist
The contract also embeds a demand response commitment: Firmus will curtail electricity consumption for up to 220 hours per year when South Australian wholesale prices exceed agreed thresholds, aligning AI compute cadence with grid stress and unlocking additional value for Gunvor's portfolio. It is a template other hyperscale AI builders in stress-tested grids — from Ireland to Texas — will study closely.
Related coverage: Grenergy Signs 15-Year 1 TWh Night-Time PPA For Chile's Elena BESS, Meta Doubles Louisiana AI Cluster To 5 GW.
Reporting based on coverage from Energy-Storage.News, PV Tech and Firmus/Gunvor announcements.