Genex Power: Kidston Stage 2

Investment Decision July 2019

Genex Power: Kidston Stage 2

250MW pumped storage hydro project, Kidston (near Georgetown), 270kms north west of Townsville.

NAIF loan Total project value
Up to $610m Commercial in confidence
Public Benefit Jobs
$814m (public benefit to the broader economy and community) including $235m direct value added for Far North Queensland 510 during construction (including supporting transmission line) ; 30 ongoing operation

 

NAIF’s Investment Decision was in July 2019

The NAIF indicative term sheet was issued in June 2018 which demonstrated the bankability of the project to potential counterparties.

Concessions offered in NAIF Investment Decision helped overcome disadvantages due to Project’s remote location being:

  • higher construction costs,
  • challenges recruiting and accommodating labour force,
  • significant cost impost of the new transmission line/grid connection, and
  • relatively high transmission losses due to distance from current energy load.

Indigenous Engagement

  • Actively seeking to maximise job opportunities for the local Ewamian people and Indigenous businesses
  • The project will provide funding for a local Indigenous owned tourist facility

* Financial assistance to the project is subject to a number of conditions including the finalisation of the Queensland Government’s consideration and agreement for the approved funds to be advanced, the Queensland Government’s commitment to linking transmission infrastructure for the Project and EnergyAustralia’s final approval of its commitment to the project.

Economic Impact and Public Benefit, including

  • Energy storage facilities have a significant role to play in Australia’s transition to a low emissions, low cost energy future
  • Wholesale market energy cost savings
  • Emission savings
  • Storage capacity and ‘dispatchability’ of energy to enhance network reliability