Aggreko to Power Arrow Energy’s Hybrid Project in Queensland
A new hybrid power station is under construction to bolster Arrow Energy’s Surat Gas Project North in Queensland, showcasing the integration of natural gas and renewable energy for a safe, reliable, and low-emissions power supply.
This facility will feature a solar farm intended to provide electricity to Arrow’s field compression station, where gas is processed before it reaches the market.
During the construction phase, it is estimated that around 90 jobs will be generated. When fully operational, the power station will utilise a mix of gas, solar, and battery storage.
Arrow Energy’s Vision for Cleaner Energy
XinMiao Tong, chief executive officer of Arrow Energy, expressed optimism about the project, stating that the station will deliver essential power for the company’s operations. Tong remarked: “The hybrid station represents a forward-looking energy solution and exemplifies how gas and renewables can collaborate to produce cleaner, smarter energy.”
He further elaborated, “By merging solar energy generation and battery storage with gas-powered electricity, we will not only bolster our operational resilience but also enhance our greenhouse gas emissions profile while supplying vital energy to Queensland and beyond.”
With natural gas anticipated to play a pivotal role in the energy landscape for many years to come, initiatives like this are seen as the future of energy production. “Arrow has markedly decreased its emissions intensity across our gas operations in the last decade, and this hybrid solution is a significant stride towards supporting Australia’s net zero goals,” Tong added.
Operational Timeline and Collaborative Efforts
The power station is slated to commence operations in 2027 and is projected to generate up to 186 gigawatt hours of electricity annually, with roughly 20 per cent sourced from solar energy.
Aggreko, a global provider of energy solutions, will develop, own, and manage the facility through a 20-year partnership with Arrow Energy. George Whyte, managing director of Aggreko APAC, highlighted the project as a significant achievement for the region and the future of hybrid energy in Australia, stating: “This project marks a vital milestone for both the locale and the advancement of hybrid energy systems.”
Benefits for the Local Community and Environment
Whyte noted that the combination of thermal generation, solar power, and battery storage creates a robust energy platform, enhancing operational reliability for Arrow while also aiding Queensland’s broader decarbonisation efforts. He said, “Our long-term partnership with Arrow Energy highlights Aggreko’s commitment to being a trustworthy collaborator in delivering innovative, lower-emissions energy solutions. We eagerly anticipate contributing to local job creation during the construction phase and supporting the growth of the Surat Basin.”
Aggreko’s investment signals its dedication to aiding industries in reducing greenhouse gas emissions while enhancing efficiency and resilience in energy-intensive operations, particularly in remote areas.
The hybrid station is planned to feature a 17MWp solar farm (pending final government approvals), an 8.4MVA/16MWh battery energy storage system, and a 33.75MVA gas-fired thermal power station, all designed to facilitate the transition to cleaner energy.
The construction will unfold in two stages, with the thermal power station and battery system expected to be completed by mid-2027, followed by the solar farm’s completion by the end of the same year.
Environmental Impact and Economic Growth
At peak performance, the solar and battery systems are projected to lessen annual fuel gas consumption by approximately 385,000 gigajoules and reduce greenhouse gas emissions by around 21,000 tonnes of CO₂ equivalent each year compared to a traditional gas-only power station.
Additionally, the project promises to bring economic advantages to the Miles and broader Surat Basin area, fostering employment during construction and stimulating local economic activity.
