Work is underway on a hybrid power facility in Queensland, Australia, designed to support Arrow Energy’s Surat Gas Project (SGP) North. The project is being led by UK-headquartered Aggreko and aims to demonstrate how natural gas and renewable energy can operate together in a single power generation system.
The facility is located near Miles in the Western Downs Region. On February 24, Aggreko said the station will provide electricity to Arrow’s field compression station, where gas will be processed before being supplied to the market. Around 90 jobs are expected to be created during the construction phase.
Project Components and Capacity
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
In power generation, MVA (megavolt-ampere) represents apparent power, or the total capacity of electrical equipment to manage both real and reactive power.
Construction will take place in two stages. The thermal power station and battery energy storage system are expected to begin operations by mid-2027. The solar farm is scheduled to be operational by the end of 2027.
Leadership Statements
Arrow Energy CEO XinMiao Tong said the power station will supply electricity for the company’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 Arrow Energy CEO XinMiao 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.”
George Whyte, Aggreko APAC managing director, said, “This project represents an important milestone for the region and for the future of hybrid energy in Australia. 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.”
Aggreko said the investment supports long-term efforts to reduce GHG emissions, improve efficiency, and enhance resilience in remote and energy-intensive operations. The company’s ESG strategy includes achieving net-zero emissions from its facilities and operations by 2035 and reducing the emissions intensity of its energy solutions by 30% by 2030.
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