King & Wood Mallesons (KWM) is proud to have advised InCommodities, a Danish-headquartered global energy trading company, on its landmark $300 million long-term capacity swap agreement with Ampyr Australia for the Bulabul Battery Energy Storage System (BESS).
Under the arrangement, InCommodities will access up to 120 MW of capacity at the Bulabul BESS over a period of up to 15 years, representing InCommodities’ first significant long-term BESS investment in the Australian energy market.
The agreement demonstrates:
- the role that non-traditional players, like trading houses (who do not have physical assets in the NEM) have to play in supporting Australia’s transition towards a more renewable energy mix;
- the growing demand for more innovative and enduring contracting solutions to firm up project revenues in the middle to long run time horizon; and
- a potential new type of buyer for long term power purchase contracts in Australia - challenging a space normally dominated by retailers.
The KWM team was led by Partner Josh Thorneycroft with support from Senior Associate Aditya Shivam and Solicitor Nick Forbutt.
Commenting on the deal, Partner Josh Thorneycroft said:
“We are delighted to have supported InCommodities on its first long-term commitment in Australia. This agreement reflects the growing sophistication of the Australian storage market and the appetite for commercial models that can underpin investment in large-scale batteries.”
This transaction highlights KWM’s strength in advising on innovative, market-shaping energy transition projects and reinforces the firm’s capability in supporting global energy participants on complex, novel and strategic transactions that help define the future of Australia’s power system.
