New transmission line project in QLD to support 400 construction jobs

Genex Power Limited has announced that the Queensland Government is investing approximately $147 million for the delivery of a transmission line as well as a new substation that will support the Kidston Pumped Storage Hydro Project (K2-Hydro). 

The funding commitment will cover the construction of a new 185.9-kilometre 275kV single circuit transmission line from K2-Hydro to Mt Fox and a new substation at Mt Fox. 

This significant infrastructure will help facilitate the connection of K2-Hydro to the National Electricity Market (NEM). 

In addition to connecting K2-Hydro to the NEM, the new transmission line will also open opportunities for the creation of a new Renewable Energy Zone in North Queensland as well as underpin the development of the Kidston Clean Energy Hub – which can possibly include the connection of the Kidston Stage 3 Wind Project and Stage 2 Solar Project. 

“Genex is delighted to receive confirmation of the Queensland Government’s $147 million funding package for this critical transmission infrastructure. The Transmission Line will support not only our flagship Kidston Pumped Storage Hydro Project, but the broader Kidston Clean Energy Hub including the Kidston Stage 3 Wind Project and the Kidston Stage 2 Solar Project, with the creation of a new North Queensland Renewable Energy Zone,” Genex CEO James Harding said. 

Powerlink Queensland will build, own and operate the new transmission line. 

The $147 million funding injection will be provided directly to Powerlink, with the funding arrangement to be reflected in a Generator Connection and Access Agreement executed between Powerlink and K2-Hydro as part of the financial close process. 

The new transmission line project is anticipated to support up to 400 jobs during its construction phase. 

“The funding is a crucial piece for the overall project financing for the project, which is rapidly advancing toward financial close. We will continue to update the market as we move through the final approvals and documentation in the coming weeks. 

“We would like to thank the Queensland Government for their support and look forward to continuing to work together to deliver this exciting new piece of electricity infrastructure which, together with the pumped hydro project, will deliver over 500 new jobs, contribute to a more stable electricity supply in North Queensland and assist Queensland in moving toward its 50% renewable energy target by 2030,” Mr Harding said. 

The K2-Hydro is going to be built on the site of an abandoned gold mine in Far North Queensland, approximately 270 kilometres north west of Townsville. 

The project will be utilising the two existing mining pits, Wises and Eldridge, as the upper and lower reservoirs to help minimise construction cost and time. 

Once up and running, K2-Hydro will have a generation capacity of 250MW and about 2,000MWh of storage capacity. 

The engineering, procurement and construction as well as operation and maintenance works for K2-hydro is undertaken by the McConnell Dowell – John Holland joint venture. 

Source: Genex Power Limited (1, 2); Renew Economy; PV Magazine Australia; The Market Herald; Industry Queensland