By Ed Frankl

Siemens AG said Monday that it has signed a letter of intent with Zukunftsenergie Nordostbayern GmbH for the construction of a 100-megawatt battery-storage facility in southern Germany.

The plant in Wunsiedel, Bavaria, will have a storage capacity of 200 megawatt hours. It is intended to use surplus energy and cover demand peaks in the power grid, the German industrial company said.

The lithium-ion battery-storage system will be provided by Fluence, a joint venture between Siemens and Arlington, VA-based AES Corp., Siemens said.

Siemens will handle project management, as well as the construction of a medium-voltage switchgear system and connection to the high-voltage grid, it said.

The facility will be alongside a 8.75-megawatt hydrogen-generation plant at Wunsiedel, which last week broke ground for construction in preparation for an operational start date in 2022. Siemens is a supplier and partner for the plant.

Write to Ed Frankl at edward.frankl@dowjones.com

(END) Dow Jones Newswires

07-19-21 0615ET