APA awards Sybella Creek Solar and Battery EPC contract to UGL

APA Group has appointed UGL to deliver the engineering, procurement, construction and commissioning of the Sybella Creek Solar Farm and Battery Energy Storage System near Mount Isa, Queensland. The project will combine 72 MW of solar generation with a 52 MW / 104 MWh battery, creating a hybrid energy asset designed to support the North West Minerals Province and Evolution Mining's Ernest Henry operation.

The award follows APA's final investment decision in August 2026 to construct, own and operate the A$259 million project. Construction is expected to begin in late 2026, with completion targeted for mid-2028.

Project at a glance

UGL's scope of work

Under the EPC contract, UGL will deliver the full project delivery package for both the solar farm and battery system. Its responsibilities include:

• Engineering design for the 72 MW solar and 52 MW / 104 MWh battery facilities

• Procurement of the project's major equipment and associated balance-of-plant components
• Construction of the solar farm, battery energy storage system and related site infrastructure
• Commissioning of the integrated solar and storage asset

The contract positions UGL as the key delivery partner for one of the more significant remote grid renewable energy projects now progressing in Queensland. UGL has described Sybella as its 16th solar farm and 12th battery energy storage system project, highlighting the contractor's established presence in Australia's renewable energy construction market.

A contracted energy solution for Mount Isa

Sybella Creek is not being developed as a conventional merchant solar project exposed primarily to wholesale electricity price movements. Instead, its economics are underpinned by an Energy Supply Agreement between APA and Ernest Henry Mining Pty Ltd, which runs until mid-2046. Ernest Henry Mining is a wholly owned subsidiary of Evolution Mining.

The project will supply renewable energy into APA's broader Mount Isa energy operations. APA intends to combine output from the solar farm and battery with firming capacity from its existing gas-fired Diamantina Power Station.

This hybrid structure is important. Solar generation is strongest during daylight hours, while mining operations require dependable power around the clock. The battery can capture, store and dispatch electricity over shorter periods, while Diamantina's gas-fired generation provides dispatchable support when solar output falls or demand rises. The result is intended to offer Ernest Henry lower-emissions electricity without sacrificing the reliability required by a major mining operation.

Why the battery matters

The planned battery is rated at 52 MW and 104 MWh. In simple terms, it can theoretically discharge at its full 52 MW capacity for about two hours: 104 MWh divided by 52 MW gives two hours.

In practice, battery operation will be managed according to demand, solar conditions, grid requirements and asset-protection limits. Its role is likely to include:

• Absorbing excess solar generation that might otherwise be curtailed
• Supplying stored power after solar production declines
• Reducing short-term reliance on gas generation
• Supporting grid stability and power quality in a remote electricity network
• Helping match renewable energy output with the operating profile of industrial customers

For Mount Isa and the wider North West Power System, storage is particularly valuable because remote power systems typically have fewer generation sources and less redundancy than the more interconnected regions of the National Electricity Market.

Building on APA's remote energy portfolio

APA is funding Sybella through existing balance sheet capacity. The company has said the project forms part of its approximately A$3.5 billion organic growth pipeline and is expected to meet APA's required return hurdles.

The development also builds on APA's existing presence in the region, including the 88 MW Dugald River Solar Farm, which was officially opened in March 2024. Sybella is expected to benefit from APA's experience operating remote energy infrastructure and from the opportunity to integrate renewable generation, storage and gas-fired firming capacity across its Mount Isa portfolio.

This approach reflects a broader shift in the resources sector. Rather than relying solely on diesel or gas-fired generation, mine operators are increasingly contracting for integrated energy systems that combine renewable generation, batteries and dispatchable thermal capacity. The objective is not simply to add renewable capacity; it is to lower energy costs and emissions while preserving operational reliability.

What the project means for key parties

APA Group

For APA, Sybella adds a long-term contracted renewable energy asset to its portfolio. The Energy Supply Agreement through mid-2046 provides a clearer revenue foundation than a purely merchant project, while APA retains ownership and operating responsibility for the asset after construction.

UGL

For UGL, the appointment adds another large solar and storage project to its EPC pipeline. The company will be responsible for delivering the project from design through commissioning, making schedule control, remote logistics, procurement and integration performance central to the project's success.

Evolution Mining and Ernest Henry

For Evolution Mining, the agreement supports the energy requirements of Ernest Henry with a mix of solar, battery storage and gas firming. The model is designed to reduce the emissions intensity of supplied power while maintaining the high reliability needed for mining and processing operations.

North West Queensland

For the broader region, Sybella introduces additional generation and storage into the North West Power System. While the principal customer is Ernest Henry, APA has stated that the project is intended to support a more reliable, lower-cost and lower-emissions power system for the wider Mount Isa area.

Key milestones to watch

The following milestones will determine whether Sybella progresses to schedule and delivers its intended commercial and operational outcomes:

• Late 2026: Expected commencement of construction.
• 2027: The main construction period between the late-2026 start and mid-2028 completion.
• Mid-2028: Target completion and commissioning of the solar farm and battery system.
• After completion: Performance of the solar, battery and gas hybrid system, delivery against the Ernest Henry supply agreement and any wider reliability benefits for the North West Power System.

Sybella Creek is a notable example of how Australia's resources and energy sectors are converging around long-term, integrated power solutions. With APA owning the asset, UGL delivering the EPC works and Evolution Mining underpinning demand through a long-dated supply agreement, the project has the contractual structure and technical mix increasingly favoured for remote industrial decarbonisation.

Published 14 September 2026