The hybrid facility, which includes a planned solar farm, will supply electricity to Arrow’s field compression station where gas will be processed in readiness for market.
Up to 90 jobs will be created during the construction phase of the power station, which, once operational, will be fuelled by a mix of gas, solar and battery.
Arrow Energy Chief Executive Officer 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,” Mr Tong said.
“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.
“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.”
Once operational in 2027, the power station is expected to supply up to 186 gigawatt hours of electricity each year, with approximately 20 per cent generated from solar.
Global energy solutions provider Aggreko will develop, own and operate the facility under a 20‑year agreement with Arrow Energy.
Aggreko APAC Managing Director George Whyte said the project highlighted 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,” Mr Whyte said.
“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.”
“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 is proud to support Arrow’s operational reliability, and this investment reflects 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.
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.
Construction will be delivered in two stages. The thermal power station and battery system are planned to be operational by mid-2027, followed by the solar farm by the end of 2027.
At peak operations, the solar and battery component is expected to reduce annual fuel gas consumption by around 385,000 gigajoules and cut GHG emissions by approximately 21,000 tonnes of CO₂‑e per year, when compared to a power station fuelled only by natural gas.
The project will also deliver local economic benefits, creating up to 90 jobs during construction and increasing local spend in the Miles and wider Surat Basin region.
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KEY FACTS – SGP NORTH HYBRID POWER STATION
- Supports Arrow Energy’s Surat Gas Project (SGP) North near Miles
- Supplies power to the SGP North Field Compression Station
- Hybrid facility using gas, solar and battery storage to generate power
- Up to 186 GWh of electricity supplied each year once operational
- Approximately 20 per cent of energy generated from solar
- Construction commenced in 2026; fully operational in 2027
- Up to 90 jobs created during construction
- Reduction of approximately 21,000 tonnes CO₂‑e per year at peak operations (when compared to a power station fuelled by natural gas only)
