This report provides a basis for future commercial development of pumped storage hydro technology in Australia, through detailing the Kidston PHES project specifications and lessons learned through the feasibility, development and financing activities for the project up to financial close.
Report extract
Genex Power Limited (Genex, Company or Owner) is the 100% owner and developer of the Kidston Clean Energy Hub, located in North Queensland (the Kidston Hub). Stage 1 of the Kidston Hub was completed in the form of the 50MW Stage 1 solar farm, which was energised in November 2017. Stage 2 of the Kidston Hub is the 250MW Pumped Storage Hydro Project (K2-Hydro or Project) which is currently under construction, having reached financial close in May 2021. A further Stage 3 of the Kidston Hub, being a wind project of approximately 150MW, is currently in feasibility stages along with a potential co-located solar farm of up to 270MW. This report is focused on the feasibility, development and financing activities for K2- Hydro as part of the ARENA Knowledge Sharing program.
The Project is located at the former Kidston Gold Mine, which closed in 2001, and represents a world first re-use of a historical gold mine site for energy storage. The Project has been designed for a nameplate capacity of 250MW and will be capable of storing and dispatching a minimum of 1,870MWh per generation cycle, with an asset life well in excess of 60 years. The total Project capital expenditure is $775.5M, which is financed through a combination of debt financing from the Northern Australia Infrastructure Facility (NAIF), a non-recoupable grant from the Australian Renewable Energy Agency (ARENA) and equity from the Project owner.
