Genex Energy has marked a new major milestone on the Kidston Pumped Storage Hydro project (K2-Hydro) in North Queensland, with the Northern Australia Infrastructure Facility (NAIF) approving a $610 million concessional loan for the delivery of the project.
“This loan to the Kidston Project is the largest investment made yet by NAIF.
“Energy storage facilities have a significant role to play in Australia’s transition to a low emissions, low cost energy future. The project will provide Far North Queensland with 250MW of firm, dispatchable energy, improving energy reliability while lowering transmission losses and electricity prices,” NAIF CEO Laurie Walker said.
Genex Energy is anticipating to reach financial close for K2-Hydro in the third quarter of 2019.
K2-Hydro is part of the Kidston Hydro-Solar Project Stage 2 - also known as K2 - which is located approximately 270 kilometres north west of Townsville. K2 is comprised of the 250MW K2-Hydro and a 270MW solar farm (K2-Solar).
K2 is going to be built on the old Kidston gold mine. K2-Hydro will utilise the existing infrastructure at the mine, including the Wises and Eldridge pits that will serve as the upper and lower reservoirs. The development will also utilise the water pipeline linking the Copperfield Dam to Kidston via an existing pumping rights; and the existing facilities at the mine such as accommodation, solid road access and airstrip.
“The decision by the NAIF Board in providing its Investment Decision approval is a further indication of the significance of Genex’s K2-Hydro project for northern Australia. We have been gaining momentum with this project over the last few months and are confident that, given the status of discussions with the various relevant stakeholders in the project, Genex will be in a position to reach financial close before 30 September this year,” Genex Energy CEO James Harding said.
In February 2019, the joint venture between McConnell Dowell and John Holland (MDJH-JV) signed an agreement with Genex Energy for the delivery of early works on K2-Hydro.
K2-Hydro is expected to have an operational life of 80 years and its construction is anticipated to support up to 510 jobs.
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