A hybrid power station is being built to support Arrow Energy’s Surat Gas Project North in Queensland, highlighting how natural gas and renewables can be integrated to deliver safe, reliable and lower-emissions energy.
The facility, which includes a planned solar farm, will supply electricity to Arrow’s field compression station, where gas is processed for delivery to market.
Up to 90 jobs are expected to be created during construction. Once operational, the power station will run on a combination of gas, solar and battery storage.
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,” Tong 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, integrated solutions such as this are the shape of things to come.
“Arrow has significantly reduced its emissions 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.”
Scheduled to be operational in 2027, the power station is expected to supply up to 186 gigawatt hours of electricity per year, with around 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 demonstrated the growing role of hybrid energy systems in major regional developments.
“This project represents an important milestone for the region and for the future of hybrid energy in Australia,” 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 said the investment reflects its long-term commitment to supporting industry to reduce greenhouse gas emissions, improve efficiency and enhance resilience across remote and energy-intensive operations.
The hybrid power station will comprise a 17MWp solar farm (subject to final government approvals), an 8.4MVA/16MWh battery energy storage system, and a 33.75MVA gas-fired thermal power station.
Construction will be delivered in two stages, with the thermal power station and battery system targeted for completion by mid-2027, followed by the solar farm by the end of 2027.
At peak performance, the solar and battery components are expected to reduce annual fuel gas consumption by around 385,000 gigajoules and cut greenhouse gas emissions by approximately 21,000 tonnes of CO₂-e per year compared with a gas-only power station.
The project is also set to deliver economic benefits to the Miles and broader Surat Basin region through construction employment and increased local spending.
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