The Northern Australia Infrastructure Facility has approved a loan of up to $610 million to Genex Power Limited's Kidston pumped hydro-energy storage near Einasleigh.
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Minister for Resources and Northern Australia Matt Canavan said the loan was NAIF's largest to date and showed the federal government's commitment to building new infrastructure and creating jobs in the north.
"This is an exciting new project for North Queensland - one that will create a longterm future for the north's industries and households, with affordable and reliable power a key consideration for anyone looking to operate an energy intensive business in the region," Minister Canavan said.
"The NAIF is investing in this project because of the importance of affordable and reliable power in developing the north."
Minister Canavan said there would be 510 jobs created during construction of the project and its supporting transmission line, along with roughly 30 ongoing jobs, and a direct contribution of $235 million to north Queensland's economy.
"The Genex project will be capable of storing and dispatching electricity at full design capacity for eight hours, for a total of 2,000 megawatt hours per generation cycle," he said.
"Having that electricity available on demand during the peak will mean lower power prices, in addition to greater electricity network security and stability."
The project also requires an agreement with the Queensland Government on shared financing of the transmission line connecting it to the power grid under its Powering North Queensland policy. Construction is expected to start in coming months with the project to be operational in 2023.
KAP Leader and Federal Member for Kennedy Bob Katter has welcomed the announcement but will believe it when the money has been transferred.
"We've had numerous statements made and nothing has happened out of the NAIF. So while we are tremendously pleased that the project has come through, people must understand until the money leaves the Facility and the hard hats are on, it's just another announcement," Mr Katter said.
In late 2017, Mr Katter toured with then Shadow Minister for Transport and Infrastructure Anthony Albanese to show him the 'Triangle of Power' which featured Kidston as one of the three projects that are key to reducing the cost of electricity in Australia.
"The Kidston Pump Hydro project, 270km north-west of Townsville, is essential to providing reliable power to the north, but we also need to invest in the Hell's Gates proper and the Tully Realignment, which will firm up base load and peak load power. Together they can provide a very reliable peak load," he said.
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