Kidston hydro on track as NAIF loan finalised

Genex Power has flagged it is on track to start construction this month and reach financial close in May on the $777 million Kidston pumped hydro project. It has executed all outstanding financing documentation, including closing on a $610 million loan through the Northern Australia Infrastructure Facility (NAIF). Genex chief executive officer James Harding. Expected to be completed by 2024, the project will repurpose the old Kidston gold mine to a 250 MW / 2000 MWh pumped hydro power station, creating about 500 construction jobs along the way. “Following execution of the construction documentation for the Kidston Pumped Storage Hydro Project, I am delighted that we have now executed all outstanding finance documents and, in doing so, secured all of the funding required to construct the project," chief executive officer James Harding said. Financial close is scheduled to occur in mid-May following the company's Extraordinary General Meeting on April 29. Related: Agripower wins $71m NAIF loan for expansion Minister for Resources, Water and Northern Australia Keith Pitt said the project would be a major source of energy and jobs for North Queensland. “The Kidston pumped hydro project will create around 500 jobs in North Queensland during the construction phase and will help secure long-term and affordable electricity supplies to help the region grow further over the next 50 years,” Mr Pitt said. “I congratulate the Genex Power team and project partners for reaching contractual close on the NAIF loan and look forward to seeing the project come to life.” Assistant Minister for Northern Australia Michelle Landry said the Kidston project was NAIF’s biggest investment so far, and underlined the Government’s commitment for NAIF to support jobs, development and opportunities in northern Australia. “NAIF has made financing commitments worth around $2.8 billion, creating jobs and supporting economic expansion across northern Australia,” Ms Landry said. Assistant Minister for Northern Australia Michelle Landry. “In Queensland, NAIF has supported projects with a total value of around $1 billion, supporting around 2500 jobs and returning an estimated economic benefit of more than $2.2 billion. “Our reforms to NAIF, and the decision to extend NAIF’s investment period by five years to the end of June 2026, demonstrate the Government’s ongoing commitment to northern Australia as a great place to live, work and do business.” The project includes a 186km transmission line to connect the project to the national grid, which is being funded by the Queensland Government. In addition to the NAIF loan the project has secured a $47 million grant from the Australian Renewable Energy Agency (ARENA). Along with the proceeds of a fully underwritten $115 million fundraising and Genex’s existing cash, the execution of this documentation means the project is fully funded. The grant from ARENA builds on previous $17.9 million funding support from ARENA including technical and pre-feasibility studies for the project and $54 million in finance from the Clean Energy Finance Corporation for the Genex Kidston Renewable Energy Hub. A McConnell Dowell/John Holland joint venture has been selected to deliver the Kidston hydro project (K2-Hydro). Suppliers and subcontractors: web link - https://www.mcconnelldowell.com/suppliers-subcontractors

Kidston hydro on track as NAIF loan finalised

Industry Queensland

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