APA Group to Construct Second Solar Farm and Battery for Mining Power Reliability
Australia’s leading gas pipeline company, APA Group, has announced plans for a significant off-grid solar and battery project, designed to provide a reliable mix of renewable energy and gas to a copper, gold, and silver mining venture located in the remote regions of Queensland.
On Thursday, APA confirmed its final investment decision to build, own, and operate the 72 megawatt (MW) Sybella Creek Solar Farm (SCSF) along with a 52 MW battery energy storage system (BESS) in Mount Isa. The company, which operates over 15,000 km of pipelines, is set to invest $259 million into the initiative, guided by an Energy Supply Agreement (ESA) with Ernest Henry Mining, a subsidiary of Evolution Mining, extending to mid-2046.
Expansion of Solar Initiatives
This will mark APA’s second solar farm in the area, following the anticipated completion of the 88 MW Dugald River solar farm in 2024. The introduction of the solar and battery systems, alongside the existing gas-fired Diamantina Power Facility, aims to offer “a holistic, lower emissions energy solution” for operations at Ernest Henry, thereby enhancing the efficiency and reliability of its energy supply at a reduced cost.
According to the company, the battery storage system will bolster network reliability and resilience for not only Ernest Henry but also for mining clients and the wider local community within the North West Power System.
Transitioning to Renewable Energy
APA is following a trend among vertically integrated energy firms by shifting focus towards the development, generation, and supply of renewable energy. Its growing portfolio now includes 342 MW of wind power, 356 MW of solar capability, and 75 MW of battery energy storage, with an impressive development pipeline exceeding 1 gigawatt (GW).
“Our strategy centres around investing in dependable generation capacity, while gradually integrating more flexible renewable energy and energy storage options over time, ensuring system reliability and lower emissions outcomes,” the company explains. Engineering studies are also underway to explore remote microgrids capable of replacing diesel and gas electric generators.
APA has celebrated the first operational year of its 45 MW solar farm and 35 MW BESS adjacent to its Port Hedland gas power station in Western Australia, with plans to increase solar capacity and introduce new gas engines at the site.
Driving Customer Value and Energy Security
Adam Watson, CEO and managing director of APA, underscored the importance of customer demand in driving the company’s transition to solar and battery storage. “Essentially, these projects are only viable when customers can achieve a lower levelised cost of energy,” Watson stated during a webcast following the company’s results announcement.
“We take pride in providing customers with solutions that lower their costs, deliver attractive renewable outcomes, and are supported by the Diamantina Power Station.” He added that this initiative diversifies their customer base and promotes ongoing earnings growth while enhancing energy security in Mount Isa, further contributing to their remote power generation growth strategy.
Construction of the Sybella solar and battery project is expected to commence later this year, aiming for completion by mid-2028. Watson anticipates this will serve as a benchmark for additional projects harnessing renewable energy and battery storage for powering mining and other remote operations.
Insights from Industry Leaders
The industry is witnessing a shift towards high levels of renewable energy for remote mining operations, as illustrated by the Bellevue gold mine in Western Australia, which has achieved consistently high renewable shares averaging over 80% during February, with some days reaching up to 93.8%.
As reported by Renew Economy, several off-grid mining projects are also achieving remarkable renewable energy outputs, frequently surpassing initial predictions. For instance, Lynas Gold reported a staggering 95.7% renewable share during the entire March quarter at its Mt Weld lithium mine, while the Kathleen Valley facility run by Liontown Resources has consistently maintained more than 80% renewable energy in its operations.
APA’s established gas generation capabilities set it apart, enabling them to power not only traditional mining operations but also data centres.
“Our strategy leverages the Sybella project as an example of a behind-the-meter solution,” Watson mentioned during the Thursday webcast. “This enables us to efficiently bring renewable power generation to market, complemented by battery storage and supported by an existing facility. Our skill set allows us to effectively fulfil the energy needs of customers across multiple sites, catering to both power generation clients and data centres.”
Watson noted that APA isn’t merely aiming to build infrastructures connected to the grid but is also focusing on optimising their extensive land resources for attractive behind-the-meter solutions encompassing gas supply and electricity potential for the future.
