Construction is underway on a hybrid power station in Queensland, Australia that will support Arrow Energy’s Surat Gas Project (SGP) North. UK-headquartered Aggreko is leading the project, which is designed to show how natural gas and renewable energy can work together in a power generation installation.
The hybrid facility, located near Miles in the Western Downs Region, includes a planned solar farm. Aggreko on February 24 said the facility will supply electricity to Arrow’s field compression station, where gas will be processed in readiness for market. As many as 90 jobs will be created during the construction phase of the power station, which also will include battery energy storage in addition to solar power and natural gas-fired generation.
Arrow Energy CEO XinMiao Tong said the power station will provide electricity for Arrow’s operations. “The hybrid station is a power solution for the future and a strong demonstration of how gas and renewables can work together for cleaner, smarter energy,” said Tong. “By integrating solar generation and battery storage with gas-powered electricity, we will strengthen our operational resilience while improving our greenhouse gas (GHG) emissions footprint as we produce essential energy for Queensland and beyond.
Tong added, “With natural gas expected to remain an important part of the energy mix for several decades to come, integrated solutions such as this are the shape of things to come. Arrow has significantly reduced its emission intensity across our gas operations over the past decade, and this hybrid power solution is the next step in supporting Australia’s net zero ambitions.”
The hybrid power station will include:
- A 17 MWp solar farm (subject to final government approvals).
- An 8.4-MVA/16-MWh battery energy storage system (BESS).
- A 33.75-MVA gas‑fired thermal power station. MVA, or megavolt-ampere, in power generation represents apparent power, the total capacity of electrical equipment (generators, transformers, lines) to handle combined real (MW) and reactive (MVAR) power.
George Whyte, Aggreko APAC managing director, said the project highlights the role of hybrid energy solutions in supporting major regional developments. “This project represents an important milestone for the region and for the future of hybrid energy in Australia,” said Whyte. “The combination of thermal generation, solar power and battery storage delivers a robust energy platform that supports Arrow’s operational reliability and contributes to Queensland’s broader decarbonisation goals.”
Whyte added, “Our long-term agreement with Arrow Energy underscores Aggreko’s commitment to being a reliable partner in delivering innovative, lower emissions energy solutions. We look forward to supporting local job creation during construction and playing a role in the continued growth of the Surat Basin.”
Aggreko on Tuesday said the investment supports Arrow’s operational reliability, and is part of the company’s long-term commitment to partnering with industry to reduce GHG emissions, improve efficiency, and enhance resilience across remote and energy-intensive operations.
Aggreko said the company’s environmental, social, and governance strategy is underpinned by two goals:
- Net-zero emissions from facilities and operations by 2035.
- 30% reduction in the emissions intensity of energy solutions by 2030.
Construction of hybrid project will be delivered in two stages. The thermal power station and battery energy storage system are expected to be operational by mid-2027, with the solar farm entering operation by the end of 2027.
—Darrell Proctor is a senior editor for POWER.
