CIMIC's UGL secures $150M contract at Kidston pumped storage project -

CIMIC’s UGL secures $150M contract at Kidston pumped storage project

Genex solar — The 50MW Kidston Solar Project (KS1). Image courtesy of Genex Power.

CIMIC Group’s UGL has secured a contract for the design, construction and installation of a high voltage transmission line from Kidston to Mt Fox in Queensland, and a new 275kV switching station located at Mt Fox.

The contract will provide revenue to UGL of approximately $150 million.

UGL is currently performing early works and mobilisation for the contract with its client, Powerlink, in support of the Kidston Clean Energy Hub in Queensland.

The Kidston Clean Energy Hub is comprised of the operating 50MW stage 1 Solar Project (KS1) and the 250MW Kidston Pumped Storage Hydro Project (K2-Hydro) with potential for further multi-stage wind and solar projects.

The project, which is being developed by Genex Power, was green-lighted after reaching financial closure last week and will utilise two disused gold mine pits near the central Queensland township of Kidston to provide dispatchable supplies of energy storage, combined with onsite supplies of renewable electricity.

Major investors in the project include J-POWER, the Northern Australia Infrastructure Facility, the Australian Renewable Energy Agency, and the Queensland Government , which is investing $147 million.

Queensland’s Energy, Renewables and Hydrogen Minister Mick de Brenni said the high voltage transmission lines were significant part of the project.

“By connecting the first pumped hydro storage project in Queensland in more than 40 years, the Palaszczuk Government is ensuring the security of the network. Not only that, construction of the 186-kilometre transmission line alone will support 400 jobs and have impacts across the supply chain in communities like Ingham and Charters Towers,” the minister said.

CIMIC Group Executive Chairman and Chief Executive Officer Juan Santamaria said the award followed UGL’s involvement with other critical power infrastructure projects in regional areas, including Queensland’s CopperString 2.0 and South Australia’s Hill to Hill project.

“This project will deliver a transmission line and switching station to connect the Kidston Clean Energy Hub to the national electricity grid – a vital step in the provision of power to Queenslanders and businesses,” Santamaria said.

UGL Managing Director Doug Moss said UGL now had an exciting pipeline of work in delivering high voltage power projects around Australia.

“We are delighted to build on our relationship with Powerlink for this important renewable energy infrastructure project,” he added.

The McConnell Dowell/John Holland joint venture had earlier been selected for delivering the Kidston Hydro 2 (K2-Hydro), part of the Kidston Clean Energy Hub.