The Kidston Pumped Storage Hydro Project (also known as K2-Hydro) is a hydro-electricity project located in Kidston, 270 kilometres northwest of Townsville in Far North Queensland. The project has a generation capacity of 250 megawatts and eight hours of storage capacity. The project will utilise two existing mine pits on the site as the upper and lower reservoirs for the project to generate electricity for sale directly to the National Electricity Market (NEM).
|2019||Preferred Bidder Announced|
|Mar 2021||Contractual Close|
|Apr 2021||Construction Commencement|
|2024||Expected Construction Completion|
The Queensland Government's contribution is for the construction of a 186 kilometre single-circuit transmission line from Kidston to Mount Fox to connect the hydro project to the NEM. The Federal Government's funding is through ARENA.
|Equity Finance:||Underwritten Capital Raising|
|Debt Finance:||Northern Australia Infrastructure Facility|
The NAIF's contribution is a 15-year concessional loan. Genex to provide $120 million, including $25 million investment by J-Power in Genex.
|Procuring Agency:||Genex led procurement of the Pumped Hydro facility. The transmission line will be built, owned and operated by state-owned transmission network service provider Powerlink Queensland.|
|Successful Tenderer:||Engineering, Procurement and Construction (EPC) contract and Operation and Maintenance (O&M) contract awarded to a Joint Venture comprising John Holland and McConnel Dowell.|
|Adviser (Tenderer):||NAIF Advisors: Allens|
|Jan 2019||The Engineering, Procurement and Construction (EPC) contract, and Operation and Maintenance (O&M) contract for hydro plant component of the project awarded to a Joint Venture comprising John Holland and McConnell Dowell.|
|Mar 2020||Genex Power and EnergyAustralia signed an Energy Storage Services Agreement (ESSA) for an initial term of 10 years and two 10-year options for extension (a maximum term of 30 years). Under the agreement, EnergyAustralia will operate the plant, have full dispatch rights and be obligated to meet its operating costs. Genex will receive an escalating annual fixed fee. After the full 30-year term, EnergyAustralia will have the right to acquire Genex's shareholding in the project for a fixed cash payment. The ESSA is conditional on the project reaching financial close by 28 February 2021.|
|Dec 2020||The NAIF Board makes refreshed Investment Decision for concessional loan facility, reflecting final ESSA terms.|
|Feb 2021||The Queensland Government increased its funding commitment for the project to $147 million.|
|Mar 2021||ARENA announced up to $47 million in funding for the project, completing financing for the project. Genex Power also announced a $90 million underwritten capital raising to finance the project.|
|Jun 2021||UGL was awarded the contract to deliver the 186 kilometre transmission line, which is to be owned and operated by Powerlink Queensland.|
2021/03/24 (Genex Power)