Kidston Pumped Hydro Project
Preferred bidder announced
Greenfield (construction) or brownfield (government asset divestment) projects needed or likely to occur within the next five years, but is not formally proposed by a state, territory or major local government.
The project or divestment is supported by a state, territory or major local government, is subject to studies or other processes (such as pre-feasibility or scoping studies or business case development), and is likely to proceed to formal announcement.
The project has a firm commitment and timeline from a state, territory or major local government, but has not yet entered the market.
The project or transaction is under procurement (such as a call for Expressions of Interest, requests for tender, or another offer to the market).
Preferred bidder announced
A preferred bidder has been selected and is in exclusive negotiations.
Projects that have progressed to contractual close remain on ANZIP for 12 months.
ANZIP is focused only on major infrastructure activity, above the following thresholds:
Construction projects: > AUD$300m
Investable greenfield & brownfield: > AUD$100m
All greenfield and brownfield projects and divestments: > NZD $100 million
The Kidston Pumped Storage Hydro Project (also known as K2-Hydro) is a hydro-electricity project located in Kidston, 270km northwest of Townsville in Far-North Queensland. The project has a generation capacity of 250MW and 8 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).
To date, the project has secured a concessional loan of up to $610 million from the Federal Government's Northern Australia Infrastructure Facility (NAIF). The Queensland Government has committed $132 million towards the construction of a 186km single-circuit transmission line from Kidston to Mount Fox to connect the hydro project to the NEM. The transmission line will be built, owned and operated by State-owned transmission network service provider Powerlink Queensland. Genex has expressed its intention to seek a joint venture partner for the remaining equity costs of around $100 million, which includes its share of the cost for the new transmission line.
On 30 March 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. In exchange, 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 31 December 2020.
In early-2019, the Engineering, Procurement and Construction (EPC) contract, as well as the Operation and Maintenance (O&M) contract for the hydro plant component of the project were awarded to a joint venture comprising of John Holland and McConnell Dowell.
Last reviewed: 03/04/2020