Genex Power Limited (ASX:GNX) announces it has commenced an early works program relating to the 250-MW Kidston Pumped Storage Hydro Project (K2-Hydro).
This follows the recent announcement of its Final Investment Decision and reflects the company’s confidence that it is in the position to close out remaining workstreams and reach financial close in February 2021, according to a press release. The commencement of the early works program ensures the site is ready for construction activity, which is planned to begin in Q1 2021.
The scope of early works relates to four activities:
- Development of a new 275-kV transmission line connecting K2-Hydro to the National Electricity Market;
- Renovation of Oaks Rush Construction Camp, which will provide accommodation during the construction of K2-Hydro;
- Refurbishment of the Kidston Airstrip, allowing mobilization of the workforce; and
- Upgrade of communication infrastructure.
Genex has entered into an Early Works Agreement with Powerlink in advance of executing a Connection & Access Agreement for the project. Powerlink is undertaking a scope of early works on development of the 275-kV transmission line mentioned above. Powerlink will build, own and operate the transmission line. The scope of early works includes the establishment of the project management processes, contractor engagement and transmission line design.
Genex has commenced work associated with the Oaks Rush Construction Camp, including completing the refurbishment design and securing all required building approvals. The renovations will allow the camp to be used as accommodation for up to 500 people during the construction phase and serve as longer-term accommodation during the operation phase of K2-Hydro.
Genex has also commenced necessary refurbishment works of the Kidston Airstrip. The airstrip was developed by Kidston Gold Mine to support mine operations and has since been maintained by the Ethridge Shire Council. The Council will lease the airstrip to Genex to operate in order to support the construction and transition to operation phase of K2-Hydro. Refurbishment work primarily consists of re-sealing of the airstrip to allow for services required to transport employees relating to K2-Hydro.
The final component is to upgrade the communication infrastructure at Kidston, owing to the site’s remote location. These works include identifying and securing microwave tower sites as well as construction access tracks to their locations. The new infrastructure will provide the communication signal strength required for the development and operations of K2-Hydro.
“Genex has been working tirelessly with all our project stakeholders to progress the development of the Kidston Pumped Storage Hydro Project to this point, and we are delighted to have commenced a targeted programme of early works which will ensure the site is ready for construction activity to start early in 2021,” said Genex Chief Executive Officer James Harding. “K2-Hydro is a significant development project for regional Queensland. It will create over 500 direct jobs during the construction phase, and will support businesses and communities in Kidston, Einasleigh and the surrounding areas of Northern Queensland.”
Genex Power is 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. The Kidston Clean Energy Hub is comprised of the operating 50-MW stage 1 Solar Project (KS1) and K2-Hydro, with potential for further multi-stage wind and solar projects.