News: ORG UPDATE 1-Origin Energy invests about $400 million into Eraring Battery project

(Updates with more details and context)

April 20 (Reuters) - Australia's Origin Energy (ORG) said on Thursday it has committed to an investment of about A$600 million ($402.66 million) towards the development of the first stage of a large-scale battery at the Eraring Power Station in New South Wales.

Origin's decision comes more than a year after the company decided to close the country's largest coal-fire power plant by 2025, seven year earlier than expected, since the advent of clean energy made it economically unfeasible.

"Development of the Eraring battery is a key next step as we look to transform the Eraring site for the future, given our intention to exit coal-fired generation by as early as August 2025," said Greg Jarvis, Origin's head of energy supply and operations.

The company said agreements have been entered for supply and construction, which involves building a 460 MW battery storage system with a dispatch duration of two hours, and is expected to be commissioned in the final quarter of 2025.

Origin has the option to increase the battery capacity to 700 MW and four hours dispatch duration in the future.

The Eraring battery project received initial planning approval from the NSW Department of Planning and Environment in May 2022.

($1 = 1.4901 Australian dollars)