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Firmus Technologies has signed a 12-year wholesale energy supply agreement with Gunvor Group for 600 MW of firm electricity to support the next phase of its AI factory rollout in South Australia.
Under the deal, Gunvor will support the development of 1.2 GW of new renewable generation and 1.5 GWh of new battery storage by 2032 to supply Firmus’ planned expansion in the state.
The agreement is the first commercial deal supporting commitments set out in Firmus’ Australian Energy Policy and Australian Water Stewardship Policy, which the company released alongside the energy agreement.
Project Southgate
The energy supply agreement underpins the first phase of Firmus’ South Australian AI factory campuses at Tailem Bend and Stirling North, which together represent 2.7 GW of planned capacity. The campuses form part of Project Southgate, Firmus’ strategy to develop large-scale AI factory infrastructure across regional Australia.
The sites are intended to bring long-term investment and skilled employment to South Australia by locating industrial infrastructure in areas with existing renewable energy resources and transmission capacity.
Demand Response
The agreement includes a demand response commitment under which Firmus will reduce its electricity consumption for up to 220 hours each year when wholesale electricity prices exceed agreed thresholds.
By lowering demand during periods of peak grid stress, the company aims to free up electricity for other users while easing pressure on wholesale prices.
Koolunga Battery
A long-term offtake within the agreement supports GreenPoint Energy’s Koolunga Battery Energy Storage System (BESS), located near Brinkworth in South Australia’s Mid North.
The 200 MW / 800 MWh grid-forming battery will represent more than half of Firmus’ initial firming capacity commitment.
Oliver Curtis, Co-CEO of Firmus Technologies, explained the rationale behind the regional approach.
“We’re building our AI Factories in regional South Australia because they’re the right locations for large-scale AI infrastructure and the energy investment that goes with it,” he remarked.
“Our South Australia energy agreement puts our commitments into practice, backing new renewable generation, major battery storage and flexible energy use that supports the grid. Koolunga is the first example of that commitment already underway – a major new battery that strengthens the electricity system while we build.”
Curtis added that the company is focused on “investing in regional South Australia – creating new infrastructure, supporting local jobs and strengthening the electricity system while building the capacity Australia needs for the next generation of AI.”
“We’re committed to paying our own way and ensuring these projects deliver lasting benefits for the communities that host them,” he noted.
State Government Response
The Hon. Peter Malinauskas, Premier of South Australia, pointed to the project’s alignment with the state’s clean energy trajectory.
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“This project demonstrates how that leadership is attracting the industries of the future,” he commented. “It recognises the strategic importance of advanced AI and digital infrastructure to the State’s economic future, bringing new jobs, new investment and long-term opportunities to regional South Australia.”
Gunvor’s Role
David Maher, Head of APAC Power Trading and Origination at Gunvor, described the commercial model behind the deal.
“This transaction demonstrates how long-term customer demand can help unlock renewable supply, firming and risk management through a single commercial solution,” he remarked. “As AI and digital infrastructure continue to develop in Australia, we believe models like this can support investment in new generation and storage while delivering reliable and flexible supply outcomes.”
Maher added that Gunvor looks forward to continuing its work with Firmus.
Energy And Water Policies
Alongside the energy deal, Firmus released its Australian Energy Policy and Australian Water Stewardship Policy, setting out how its AI infrastructure will integrate with Australia’s electricity system while minimising cooling-related water consumption.
The policies establish measurable commitments covering energy efficiency, renewable energy procurement, battery storage, demand response, network costs, cooling technology and transparent reporting across Firmus’ Australian operations.
Firmus’ Energy Policy goes beyond the Commonwealth Government’s March 2026 Expectations of Data Centres and AI Infrastructure Developers by translating those expectations into specific, measurable commitments for its Australian grid-connected operations.
The company was founded on the principle that AI infrastructure should be part of the energy transition, not a burden on it. Its approach combines energy-efficient AI factories, grid-aware operating software, integrated workload management, direct contracting of firming capacity and a vertically integrated manufacturing and engineering base.
Seven Energy Commitments
The energy policy is built around seven principles. These include commitments to energy-efficient design using liquid cooling that removes heat at the source, demand response during periods of grid stress, and investment in new firming infrastructure at a ratio of at least 2.5 MWh of firming capacity for every 1 MW of contracted load.
Firmus has also committed to underwriting more renewable generation capacity than it contracts for its own use, ensuring new supply enters the system rather than drawing from existing capacity.
The company has pledged to pay commercial rates for electricity without special subsidies or preferential tariffs and to fund its own transmission connection infrastructure. It has stated it does not expect Australian households or small businesses to be adversely impacted by its energy or connection costs.
The policy also includes a principle around supporting coal-to-clean transition mechanisms where they are commercially viable and support system reliability.
Curtis framed the policies as a direct extension of the energy agreement.
“Our energy and water policies turn that work into measurable commitments,” he explained. “They set out how we intend to grow this new industry responsibly while strengthening the electricity system, managing water carefully and supporting regional investment.”
Water Stewardship
The Water Stewardship Policy sets out how Firmus will minimise cooling-related water use across Project Southgate. It prioritises dry-mode cooling, site-specific water planning, the use of recycled or non-potable water where appropriate and transparent reporting of performance.
Hamish Kerr, Lead Mechanical Engineer at Firmus Technologies, outlined the company’s approach to water use.
“Water is scarce in Australia, and cooling high-performance compute shouldn’t drain it,” he remarked. “Our AI Factories use advanced cooling technology that operates in dry mode by default, so on most days cooling uses no water at all.”
Kerr noted that at the company’s Launceston site, annual average cooling water use is expected to be equivalent to around 10 days of cooling demand – “about the same amount of water 20 average households use in a year.”
“We’ll bring that same discipline to every Project Southgate site, tailoring our approach to local conditions, using recycled and non-potable water where it stacks up and reporting transparently on how we perform,” he added.
Responsible Growth
Tim Rosenfield, Co-CEO of Firmus Technologies, framed the policies as part of the company’s obligation to demonstrate that AI infrastructure can be built sustainably.
“The next generation of AI infrastructure has to earn its place,” he noted. “Our customers expect AI infrastructure, but they also expect it to be built responsibly. These policies show how we intend to deliver both – combining performance with responsible energy and water stewardship.”
Both policies apply to Firmus’ owned and operated Australian grid-connected operations, including all new-build AI factories once operational. The company will report on performance against both policies in its regular annual reporting.
Firmus’ Energy Policy and Water Policy are available at firmus.co/ourcommitments.
About Firmus
Firmus Technologies is an AI factory platform company registered in Sydney. Vertically integrated from model to grid, the company uses proprietary energy and cooling technology to build and deliver AI infrastructure. Firmus provides AI cloud services across Asia Pacific and beyond.
About Gunvor Group
Gunvor Group is a global independent commodities trading company that creates logistics solutions to move physical energy, power, bulk materials and base metals. The company trades in more than 100 countries with trading hubs in Geneva, Singapore and Houston, along with offices in Stamford, Dubai, London and Shanghai. In 2025, Gunvor generated revenue of US$144 billion on trading volumes of 253 million MT of commodities.
Last Updated on June 30, 2026 by Nick Ross
