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). The proposed project site is located within Queensland's Northern Renewable Energy Zone.
The pumped hydro project is in addition to a 258 megawatt wind farm on the same site.
Key Dates
| 2015 | Project Announcement |
| 2019 | Preferred Bidder Announced |
| Mar 2021 | Contractual Close |
| May 2021 | Construction Commencement |
| 2024 | Expected Construction Completion |
Funding contributions
| Federal Government | |
| Queensland Government | |
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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. |
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Financing
| Equity Finance: | Genex |
| Equity Finance: | J-Power |
| Debt Finance: | Northern Australia Infrastructure Facility |
| Debt Finance: | Clean Energy Finance Corporation |
| Debt Finance: | J-Power |
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The NAIF's contribution is a 15-year concessional loan. |
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Procurement
| 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 |
| Related contracts: |
PROJECT HISTORY
| 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. |
| Oct 2022 | The project received approval under the Environmental Protection and Biodiversity Conservation Act 1999. |
| Jan 2023 | The Queensland Government has declared the project to be a prescribed project, which will give the project priority in development approvals. |
| Jul 2023 | J-Power provided a loan facility of $35 million as additional standby source of finance for the final stages of project delivery. |
| Jul 2024 | Genex shareholders approved a 27.5 cent per share, $380 million takeover by J-Power, meaning the company would not longer be listed on the ASX from 22 July. J-Power previously held around 15 per cent of Genex. |
