In accordance with the agreement, the MDJH-JV, the EPC and O&M contractor, will start work on an agreed program of works to fast track the development of the K2-Hydro project prior to the financial close which is expected to be reached in H1 2019.
The pumped storage hydro project is to be developed at Genex Power’s A$1bn ($711m) Renewable Energy Hub at Kidston in North Queensland, with an investment of A$330m ($234.6m).
The early works program to be taken up by the MDJH JV will focus on work pertaining to the hydraulic design and related activity for the hydro turbines. After that, the JV will work on preliminary electrical design and other project preparation activities.
Genex Power CEO James Harding said: “Embarking on this early works programme with the MDJH-JV is a significant milestone for Genex as work gets underway on our biggest project which has been in planning for a number of years.
“Genex continues to work closely with Powerlink, the Queensland State Government, NAIF, ARENA, EnergyAustralia and other key stakeholders to finalise the remaining activities ahead of the Financial Close milestone.”
The K2-Hydro project, which will have two 125MW reversible turbines, is planned to be built on the abandoned Kidston goldmine’s upper and lower pits. The two existing mining pits – Wises and Eldridge are proposed to be used by Genex Power as the upper and lower reservoirs for the pumped storage hydro project to minimize construction time and cost.
Owing to the considerable potential water head differential offered by the two pits and the vast quantity of water they can hold, the K2-Hydro project can generate 2,000MWh of continuous power generation in a single generation cycle of 250MW of peaking power generation over an eight hour period.
Power generated from the hydro project will be directly sold into the National Electricity Market (NEM).
The K2-Hydro project is expected to be commissioned in 2021 and is likely to involve 370 construction jobs over its two-year construction phase.
