Financial close of USD601.2 million achieved for 250MW pumped storage hydro project in Australia

Genex Power announced a financial close for the 250 megawatts Kidston pumped storage hydro project (K2-Hydro) in Queensland, Australia. 

The project has completed the financing of AUD777 million (USD601.2 million), which signals the satisfaction of all conditions precedent associated with the development. It follows settlement and allocation of 106,990,005 shares in Genex at AUD 0.2337 per share to J-Power, who now has a 10% interest in the company.  

The Northern Australia Infrastructure Facility (NAIF) gave a loan of up to AUD610 million (USD472 million) for the K2-Hydro, marking it as the largest investment to date. Another funding support of AUD147 million (USD113.74 million) was provided to link the project to the National Electricity Market by the Government of Queensland together with financiers Australian Renewable Energy Agency (ARENA).    

The K2-Hydro involves the development of a 250 MW pumped-storage hydropower plant and consists of two reservoirs. The project can support 2,000 MWh of continuous power generation in a single cycle with a peak power generation of 250 MW over an 8-hour period. Construction work has already begun on the Kidston site and is expected to be completed by the end of 2024. The project will create over 500 construction jobs and around 25 operational ones.  

The Kidston Pumped Storage Hydro Project and its associated transmission infrastructure are expected to be completed and feeding into the National Electricity Market by early 2025.