Kidston Pumped Storage Hydro Project
Explore how NAIF's investment is driving the development of the Kidston Pumped Storage Hydro Project, an innovative energy storage scheme within an abandoned gold mine, contributing to reliable and affordable electricity for northern Queensland.
July 2019
Energy
Kidston (near Georgetown), 270kms north west of Townsville.
The Kidston Project is the first pumped hydro energy storage scheme globally to be developed in an abandoned gold mine. The project includes a contribution to the construction cost of the 186 km transmission line from the Kidston site to Mt Fox.
The project is NAIF’s largest Investment Decision to date and involves a loan of up to $610 million. The project is forecast to create more than 500 construction jobs and deliver affordable, reliable electricity to North Queensland.
Proponent Background
Genex Power Limited is an ASX-listed company focused on developing a portfolio of renewable energy generation and storage projects across Australia.
The company’s flagship Kidston Clean Energy Hub, located in North Queensland, will integrate large-scale solar generation with pumped storage hydro and wind energy.
Project Overview
Kidston is essentially a giant battery, pumping water uphill when energy is abundant during off-peak periods and releasing it to create power in times of peak demand. The project is co-located at an existing 50 MW solar farm, and a larger solar farm at the same location is planned.
The project will buy and store power from the National Electricity Market when it is cheap and plentiful in off-peak periods. It will then sell it back to the market when prices increase in periods of high demand, typically in the morning and evening peak periods. This additional source of peak generation capacity will lead to lower average wholesale power prices, which flow on to end users through the competitive retail power market.
The energy storage project will provide dispatchable, reliable and affordable renewable energy to the grid.
Financial close on the project was achieved in May 2021. Construction activities carried out on site so far include the installation of accommodation units at the Oaks Rush accommodation village and at Kidston, upgrade of the access ramp to Eldridge Pit, and installation of a new communication system. Rock material sampling and testing for concrete production has been completed, and pumps are being mobilised on site to commence the initial dewatering of the Eldridge pit.
Project infrastructure includes:
- 186 km 275 kV transmission line.
- New substations, switchyard and control building.
- Dam construction.
- Powerhouse cavern, two pumps/turbines.
- Upgrade of local airstrip.
How We Helped
The Kidston project is supported by NAIF’s largest loan approved to date.
NAIF was an early supporter of the project. In 2018 NAIF conditionally approved a loan that helped Genex secure other support for the project, including from EnergyAustralia through a long-term off-take agreement, and an agreement with J-Power of Japan, conditional on the Kidston project closing.
Public Benefit
The project is forecast to contribute $343 million in net public benefit to the regional, state and national economies, including $235 million direct value-add for Far North Queensland. Benefits include:
- wholesale market energy cost savings estimated at a present value of $500 million,
- emission savings,
- reliable, on-demand electricity,
- 530 forecast jobs.
The support we have received from the NAIF team in advancing the Kidston project has been instrumental in getting the project to the stage it is today. NAIF’s conditional approval for the project in June 2018 brought confidence in the project’s financeability. This has been vital in building the momentum we have achieved with a range of other project participants and stakeholders.
James Harding
Genex CEO
Related Links
Indigenous Engagement
- The Ewamian people
Ewamian Country is located in Queensland’s Gulf of Carpentaria, covering the upper Gilbert and Einasleigh River catchments and encompassing the townships of Georgetown, Forsayth, Einasleigh and Mount Surprise. Ewamian Country is diverse, featuring open plains, rugged hills, and escarpments shaped by volcanic activity over the past 140,000 years. This unique environment is rich in cultural heritage with significant sites including rock art, scar trees, bora grounds, stone grooves and ceremonial locations. The Ewamian Peoples Aboriginal Corporation plays a key role in supporting the Ewamian native title rights and fostering community partnerships. The Ewamian people lead a range of initiatives on country including the management of Talaroo Station, now an Indigenous Protected Area and registered Nature Refuge, alongside the development of the Talaroo Hot Springs as an eco-tourism destination, and the Ewamian Ranger program, which drives caring for country initiatives on country.
Indigenous Engagement Strategy Commitments
- Committed to cultural heritage inductions and ongoing engagement with the Ewamian Peoples Aboriginal Corporation (formerly the Ewamian Aboriginal Corporation) to update them on the project status and discuss Ewamian involvement.
- A First Nations target set at 5% over the life of the project, with a customised procurement process including a First Nations supplier database.
- Financial sponsorship committed to the Ewamian owned and ran, Talaroo Hot Springs.
Indigenous Engagement Strategy Outcomes
- Genex supported the development of the Talaroo Hot Springs Tourism Development Plan with sponsorship of over $500,000.
- In 2021 and 2022, Genex Power engaged with 100% Indigenous-owned Australian Training Works (ATW) to support workforce development. Preference was given to Ewamian people and First Nations employment reached 7%.
- In 2023, First Nations employment reached 10% and Genex and contractor, McConnell Dowell, continued to work with ATW and the Ewamian Peoples Aboriginal Corporation on the First Nations supplier database and procurement strategies.
- In 2024, the Kidston Project continued achieving 10% First Nations employment with training and workplace support from ATW. The Project continued engagement with the Ewamian Traditional Owners and procurement strategies with First Nations businesses sustained.
- Total Indigenous procurement spend to date equates to over $6.6m, including contracts provided to Australian Training Works, Ewamian Aboriginal Corporation and Giidja Industries.
