APA Approves $259 Million Sybella Creek Solar and Battery Project for Queensland Mining Grid
APA Group has approved a $259 million investment in the 72 MW Sybella Creek Solar Farm and 52 MW/104 MWh battery system near Mount Isa, combining the new assets with gas generation to supply Evolution Mining's Ernest Henry operation.
Published · Updated · 4 min read
APA Group reached final investment decision on August 20, 2026, for the Sybella Creek solar battery project in Mount Isa, Queensland, committing $259 million to a 72 MW solar farm and 52 MW/104 MWh battery energy storage system. The project will supply Evolution Mining’s Ernest Henry operation while adding battery-supported renewable generation to the isolated North West Power System, where reliability and energy security are critical for mining operations and surrounding communities.
Construction is expected to begin in late 2026 and completion is planned for mid-2028. The investment is underpinned by an energy supply agreement with Evolution Mining subsidiary Ernest Henry Mining running until mid-2046, while APA’s existing gas-fired Diamantina Power Facility will provide firming capacity and additional energy supply.
The project combines solar, batteries and existing gas generation
APA announced the final investment decision on August 20, describing Sybella Creek as part of its strategy to develop remote power-generation infrastructure for major industrial customers.
The solar farm will have a rated capacity of 72 MW, while the battery will be capable of delivering 52 MW with 104 MWh of stored energy. That gives the battery approximately two hours of energy at its maximum rated discharge power.
The new assets will not operate as a solar-and-battery system in isolation. APA said its Diamantina Power Facility will provide firming capacity and energy supply under the long-term agreement, creating a hybrid portfolio of solar generation, battery storage and dispatchable gas-fired generation.
Ernest Henry Mining anchors the investment
The commercial foundation for the project is an energy supply agreement with Ernest Henry Mining, a wholly owned subsidiary of Evolution Mining.
The agreement extends until mid-2046, giving APA a long-term industrial customer for the new infrastructure. Ernest Henry is a major copper and gold mining operation in northwest Queensland.
APA included Sybella Creek in its approximately $3.5 billion organic growth pipeline as part of its fiscal 2026 results, saying the project will expand its remote-grid business and improve utilization of the existing Diamantina facility.
The structure illustrates how mining companies can support investment in renewable and storage infrastructure through long-term energy contracts while retaining firm generation for periods when renewable output is insufficient.
The battery is intended to strengthen the North West Power System
APA explicitly identified reliability and resilience as objectives of the battery. The company said the BESS will enhance network reliability and resilience for Ernest Henry and more broadly for mining customers and the local community connected to the North West Power System.
That makes the storage component more than a mechanism for shifting solar generation. In an isolated regional power network, fast-response batteries can also help manage fluctuations in generation and demand.
APA Chief Executive Adam Watson provided additional context during the company’s fiscal-year results discussion, saying experience with the existing Dugald River Solar Farm demonstrated the value of adding batteries alongside remote renewable generation.
The company already operates solar, gas generation and transmission infrastructure in the Mount Isa region. Its 88 MW Dugald River Solar Farm supplies renewable electricity to mining customers and the region with output firmed by the nearby Diamantina Power Station.
Sybella Creek expands APA’s remote hybrid-power strategy
The Sybella Creek solar battery project fits a model APA is deploying elsewhere in remote industrial power systems.
APA’s portfolio includes the Port Hedland Solar Farm and Battery in Western Australia, which combines 45 MW of solar generation with a 35 MW/36.7 MWh battery and existing gas-fired generation.
The company has described these combinations as remote-grid hybrid energy solutions, using renewable generation to reduce fuel use and emissions while batteries and dispatchable generation support reliability.
Sybella Creek takes that model into another major mining region and at a larger battery energy capacity than Port Hedland.
The project adds another major storage asset outside Australia’s interconnected grid
Much of Australia’s recent battery development has occurred in the National Electricity Market, where large systems participate in wholesale electricity and ancillary-services markets. Mount Isa presents a different operating environment.
The North West Power System is an isolated electricity network rather than part of the eastern Australian NEM. Investment decisions therefore depend heavily on local industrial demand and the ability to balance generation and consumption within the regional system.
Sybella Creek’s combination of contracted mining demand, solar generation, battery storage and existing firm generation provides a model for integrating renewable resources where there is no large interconnected grid to absorb fluctuations.
What happens next
APA expects construction to start in late 2026, with project completion targeted for mid-2028.
The company will fund the $259 million development from its existing balance-sheet capacity. The project remains subject to construction execution and the usual development milestones before the solar farm and battery enter operation.
Once complete, the project will provide another test of how large batteries can support renewable penetration and reliability in isolated industrial grids where continuous power supply is essential to mining operations.
Jonas Muthoni is Editor-in-Chief of Microgrid Media, where he oversees reporting and analysis on microgrids, energy storage, distributed energy resources, data center power demand, grid modernization, resilience, renewable energy, and electricity policy and markets. His work focuses on the infrastructure, technologies, and regulatory developments reshaping the power system.
As Editor-in-Chief, Jonas leads Microgrid Media’s editorial strategy and standards, including story selection, source verification, technical accuracy, and the development of original reporting and analysis. His coverage draws on regulatory filings, government records, utility and company disclosures, technical documentation, and independent industry sources to explain significant developments across the evolving energy system.
