Australia’s largest gas pipeline company APA Group has unveiled plans to build a new large off-grid solar and battery project, underpinned by a deal to supply a mix of firmed renewables and gas to a copper, gold, and silver mining operation in remote regional Queensland.

APA said on Thursday that it had reached a final investment decision to build, own and operate the 72 megawatt (MW) Sybella Creek Solar Farm (SCSF) and the 52 MW 104 megawatt-hour battery energy storage system (BESS) in Mount Isa.

The ASX-listed gas giant, which owns and operates more than 15,000 km of pipelines, says it will invest $259 million in the project, underpinned by an Energy Supply Agreement (ESA) with Ernest Henry Mining, a wholly owned subsidiary of Evolution Mining, until mid-2046.

It will be the group’s second solar farm in the region, following on from the completion of the 88 MW Dugald River solar farm in 2024.

APA says that together with the company’s existing gas-fired Diamantina Power Facility, the solar and battery systems will provide “a holistic, lower emissions energy solution” for Ernest Henry’s operations, and improve its reliability at a lower cost.