The Northern Australia Infrastructure Facility (NAIF) has approved up to AUD610m (US$428 million) in debt financing for the Genex’s Kidston Stage 2 Pumped Storage Hydro Project (K2-Hydro).
NAIF board would finance the project through the provision of a long-term concessional debt facility.
K2-Hydro involves the development of 250 MW pumped-storage hydropower plant in Queensland, Australlia. The facility acts like a giant battery, pumping water uphill when energy is abundant and releasing it to create power at night or on a windless day. The facility consists of an operating 50 MW Stage 1 Solar Project (KS1), the K2-Hydro project and the multi-staged integrated solar project of up to 270 MW (K2-Solar) under development and the Kidston Stage 3 Wind Project of up to 150 MW under feasibility study.
Genex has finalized an agreement with EnergyAustralia, now owning 50% of the project. Japan's J-Power has also invested up to AUD25 million (US$17.5 million).
Genex expects to reach financial close for the K2-Hydro in the third quarter of 2019, while commissioning is scheduled in 2022. Genex is also waiting for the Queensland government to approve plans to build a transmission line for the project.
