Construction has kicked off on a hybrid power station that will support Arrow Energy’s Surat Gas Project North near Miles.
This hybrid facility, which will include a solar farm, is expected to provide electricity to Arrow’s field compression station where gas will be prepared for market.
During construction of the power station up to 90 jobs will be created. Once it is operational, it will be powered by a combination of gas, solar and battery energy.
Arrow Energy Chief Executive Officer XinMiao Tong said the power station will supply 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,” he said.
“By integrating solar generation and battery storage with gas-powered electricity, we will strengthen our operational resilience while improving our greenhouse gas 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.”
The power station is projected to be operational in 2027 and generate up to 186 gigawatt hours of electricity annually, with around 20 per cent coming from solar energy.
Under a 20-year deal, global energy solutions provider Aggreko will build, own and operate the facility for Arrow Energy.
Aggreko APAC Managing Director George Whyte said the project highlighted how hybrid energy solutions can support significant regional developments.
“This project represents an important milestone for the region and for the future of hybrid energy in Australia,” he 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.”
The hybrid power station will feature:
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a 17 MWp solar farm (pending final government approvals)
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an 8.4 MVA / 16 MWh battery energy storage system
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a 33.75 MVA gas-fired thermal power station
Construction will occur in two phases: the thermal power station and battery system are expected to be operational by mid-2027, with the solar farm to follow by the end of 2027.
At full operation, the solar and battery portion is forecast to cut annual fuel gas use by about 385,000 gigajoules and reduce GHG emissions by approximately 21,000 tonnes of CO₂-e each year compared to a power station running solely on natural gas.
The project will also generate local economic benefits by creating up to 90 construction jobs and increasing local spending in the Miles and greater Surat Basin area.