APA Group has reached a final investment decision (FID) to build, own, and operate a 72-megawatt solar farm and a 52 MW/104 MWh battery energy storage system (BESS) at Sybella Creek, near Mount Isa in North West Queensland.
The AU$259 million project is underpinned by a long-term energy supply agreement (ESA) extending through to mid-2046 with Ernest Henry Mining, a subsidiary of Evolution Mining.
Under the contract, renewable output from the new Sybella Creek solar farm and storage facility will be paired with firming capacity from APA’s existing gas-fired Diamantina Power Facility.
The hybrid system is designed to provide lower-emission, high-reliability power to Ernest Henry’s mining operations at a reduced cost, while boosting grid stability across the broader North West Power System.
APA CEO Adam Watson stated that combining local renewables with gas firming represents the most efficient pathway to power growth in regional Queensland.
“In addition to supporting further efficiencies in the operation of the Diamantina Power Facility, this project diversifies our customer base, supports ongoing earnings growth and will further improve energy security in Mount Isa,” Watson said.
He added that the investment aligns directly with the state government’s Delivering Queensland’s Critical Minerals Future 2026–2030 framework, which aims to drive private capital into resource-rich regions.
“New renewables projects developed locally and firmed by existing gas-powered generation assets are the most efficient way to deliver the energy needed to underpin growth and energy security in this critical Queensland growth region,” Watson added.
On-site construction is scheduled to begin in late 2026, with full commercial operation targeted for mid-2028.
APA will fund the capital outlay from its existing balance sheet capacity as part of its ongoing AU$3.5 billion organic growth pipeline in remote power generation.
“The project also builds further momentum in our remote power generation growth strategy,” Watson said.
“APA is proud of the role we play in Mount Isa and we look forward to working with government and local community stakeholders to progress further opportunities in the region.”