Herbert Smith Freehills Kramer advises Aggreko on development of hybrid power facility to supply power to Arrow Energy’s Surat Gas Project

Herbert Smith Freehills Kramer (HSF Kramer) has advised Aggreko Australia Pty Ltd (Aggreko) in connection with the development of a hybrid power facility to supply electricity to the Surat Gas Project (SGP) North, in Queensland’s Surat Basin.

The SGP development portfolio is expected to comprise up to 2,500 gas wells and produce 4,000 petajoules of gas over the life of the project.

Construction will be delivered in two stages. The thermal power station and battery system are planned to be operational by mid-2027, followed by the solar farm by the end of 2027.

At peak operations, the solar and battery component is expected to reduce annual fuel gas consumption by around 385,000 gigajoules and cut greenhouse gas emissions by approximately 21,000 tonnes of CO₂‑e per year, when compared to a power station fuelled only by natural gas.

HSF Kramer’s Projects, Energy and Infrastructure team assisted in the preparation and negotiation of a power purchase agreement (PPA) between Aggreko and Arrow CSG (Australia) Pty Ltd.

The PPA covers the procurement, supply, construction, testing and commissioning of a hybrid power station, which will include:

• a 17 MWp solar farm (subject to final government approvals);
• an 8.4 MVA / 16 MWh battery energy storage system; and
• a 33.75 MVA gas‑fired thermal power station.

Aggreko APAC Managing Director George Whyte said the project highlighted the role of hybrid energy solutions in supporting major regional developments.