Mount Isa, Queensland – APA Group (ASX:APA) has committed a substantial AUD $259 million to develop a new 72-megawatt (MW) solar farm and a 52MW/104MWh battery energy storage system (BESS) in Mount Isa. The final investment decision, announced on 20 August 2026, marks a significant step towards bolstering energy security and reliability for critical mining operations in the region.
The Sybella Creek Solar Farm and Battery project is set to provide firmed renewable energy to Ernest Henry Mining, a subsidiary of Evolution Mining (ASX:EVN), under an energy supply agreement extending until mid-2046. Construction is slated to commence in late 2026, with commercial operation anticipated by mid-2028.
Boosting Reliability in an Isolated Grid
The Mount Isa region’s North West Power System operates independently of the National Electricity Market (NEM), making local energy generation and storage solutions crucial for stability. This isolation means excess generation has no external grid to export to, and shortfalls must be covered locally, historically relying on gas-fired or diesel generation.
APA Group’s investment directly addresses this challenge by integrating significant renewable capacity with battery storage. The 104 MWh BESS is designed as a two-hour duration system, capable of sustaining 52 MW of discharge power for two hours, a deliberate configuration to meet the specific operational demands of the region.
“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.”
— Adam Watson, CEO and Managing Director, APA Group
A Gas-Solar-Battery Triad for Sustainable Operations
A key aspect of the Sybella Creek project is its strategic integration with APA’s existing gas-powered Diamantina Power Facility. This facility will provide firming capacity, ensuring a holistic, lower-emissions energy solution that improves reliability and offers cost efficiencies for Ernest Henry Mining. This “gas-solar-battery triad” approach highlights how diverse energy assets can work in concert to support industrial demand in remote areas.
For businesses and industries operating in such environments, reliable and cost-effective energy is paramount. The shift towards large-scale battery storage, even when paired with traditional firming assets, demonstrates a pragmatic approach to decarbonisation without compromising operational integrity. This contrasts with residential battery applications, where homeowners might focus on maximising self-consumption and participating in programs like a Virtual Power Plant (VPP) to earn additional income.
Supporting Queensland’s Critical Minerals Future
APA Group’s CEO and Managing Director, Adam Watson, emphasised that this project aligns with the Queensland Government’s recently launched “Delivering Queensland’s Critical Minerals Future 2026-30” plan. This plan aims to grow the minerals sector, build sovereign capability, and attract new investment, with the Sybella Creek development directly supporting this vision for the North West Minerals Province.
The investment is part of APA’s broader $3.5 billion organic growth pipeline, funded from its existing balance sheet capacity. This long-term commitment underscores the growing confidence in large-scale renewable energy projects backed by robust energy storage solutions. Such developments are crucial as Australia transitions its energy landscape, moving beyond residential-scale efforts like those discussed in our guide on 6.6kW Solar & 10kWh Battery Cost Australia 2026 to encompass the energy needs of major industries.
The Broader Battery Landscape in Australia
The Sybella Creek project contributes to Australia’s rapidly expanding battery storage capacity. While grid-scale batteries face evolving market dynamics, as evidenced by a recent 85% collapse in the NEM battery price spread over the past year, sophisticated operational strategies are becoming crucial for profitability. The industry is moving beyond simple merchant arbitrage to focus on automated bidding optimisation and strategic asset management.
This large-scale investment in Queensland highlights the diverse applications of battery technology across Australia. From boosting grid stability in isolated mining regions to enabling greater renewable integration in the NEM, batteries are proving indispensable in the nation’s energy transition. The ongoing development of such projects is critical for managing peak demand and ensuring a resilient energy future, complementing the efforts of homeowners making energy-efficient upgrades to their properties. For those considering their own energy solutions, understanding the full scope of battery applications, from residential to industrial, is increasingly important. Our guide on Is a Home Battery Retrofit Worth It in Australia 2026? provides further insights into residential options.
Sybella Creek Project at a Glance
| Feature | Details |
|---|---|
| Location | Mount Isa, Queensland |
| Total Investment | AUD $259 million |
| Solar Capacity | 72 MW |
| Battery Capacity | 52 MW / 104 MWh (2-hour duration) |
| Primary Customer | Ernest Henry Mining (Evolution Mining) |
| Construction Start | Late 2026 |
| Commercial Operation | Mid-2028 |
| Firming Support | APA’s Diamantina Power Facility (gas-powered) |
This significant investment underscores the growing role of integrated renewable and storage solutions in securing Australia’s industrial energy future, particularly in remote and resource-rich regions.