Gas pipeline company APA Group has made a final investment decision to construct, own, and operate the 72MW Sybella Creek Solar Farm and 52MW/104MWh Battery Energy Storage System (BESS) in Mount Isa, Queensland.
APA will invest $259 million, underpinned by an energy supply agreement with Ernest Henry Mining until mid-2046.
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Under the agreement, APA’s gas-powered Diamantina Power Facility will provide firming capacity and energy supply to back the Sybella Creek Solar Farm and Battery project.
APA Group says these assets will provide a holistic, lower emissions energy solution for Ernest Henry’s operations, improving reliability at a lower cost.
APA CEO and managing director Adam Watson said, “In addition to supporting further efficiencies in the operation of the Diamantina Power Facility, this project diversifies our customer base, supports ongoing earnings growth and will further improve energy security in Mount Isa.
“New renewables projects developed locally and firmed by existing gas-powered generation assets are the most efficient way to deliver the energy needed to underpin growth and energy security in this critical Queensland growth region.
“We welcome the Queensland Government’s recent launch of Delivering Queensland’s Critical Minerals Future 2026-30 that sets out a clear plan to grow the minerals sector, build sovereign capability and attract new investment. Today’s announcement supports this vision for the North West Minerals Province and confirms that the settings are supportive for private sector investment in Queensland.
“The project also builds further momentum in our remote power generation growth strategy. APA is proud of the role we play in Mount Isa and we look forward to working with government and local community stakeholders to progress further opportunities in the region.”
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Construction is anticipated to commence in late 2026 with the project completion planned by mid-2028.
