APA Group (ASX:APA) has reached a final investment decision to construct the 72-megawatt (MW) Sybella Creek Solar Farm and 52MW battery storage system in Mount Isa, Queensland.
APA has committed to invest $259 million, underpinned by an energy supply agreement (ESA) with Ernest Henry Mining, a wholly owned subsidiary of Evolution Mining (ASX:EVN).
The agreement, which runs until mid-2046, supports the long-term future of APA’s gas-powered Diamantina Power Facility, which will provide firming capacity and energy supply to complement the new renewable energy assets.
CEO Adam Watson says the project diversifies APA’s customer base and supports earnings growth while improving energy security in Mount Isa.
“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,” Watson says.
“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.”
Construction is scheduled to begin in late 2026, with completion targeted by mid-2028. The investment forms part of APA’s $3.5 billion organic growth pipeline and will be funded from existing balance sheet capacity.
APA Group is an energy infrastructure business owning and operating more than $20 billion of gas transmission and electricity generation assets across Australia.
Evolution Mining is a gold and copper mining company operating six core mines across Australia and Canada.
Write to Paula Fabe at Mining.com.au
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