Chinese-owned Alinta Energy has signed an early contractor involvement (ECI) agreement with Gamuda and Ferrovial Construction to advance the design of its estimated $1.3 billion (USD 860 million) Oven Mountain pumped hydro energy storage project planned for northern New South Wales (NSW).
The Oven Mountain project is an “off-river” proposal located adjacent to the Macleay River between Armidale and Kempsey, within the New England Renewable Energy Zone. Alinta said when complete, the facility will produce up to 900 MW of electricity and will store enough water to provide up to eight hours of dispatchable, reliable energy at full generation.
Alinta lodged an environmental impact statement (EIS) for the project with the NSW planning department last year and project director Anthony Wiseman said the new agreement with Gamuda and Ferrovial is about working through the project costs and constructability.
“In this phase, we’re ensuring that we can get the parts, we can get the materials, we can get the labour, and at the right cost, so that construction can commence once we receive our remaining approvals and make a final investment decision,” he said.
“It’s exciting, but we still have a lot of work to do to make this project a reality.”
Alinta, owned by Hong Kong-based holding company Chow Tai Fook Enterprises, said long-duration energy storage solutions are crucial for Australia’s energy transition and the Oven Mountain project is well placed to form part of NSW’s journey to replace coal-fired power and support the addition of more renewables to the energy system.
The Oven Mountain pumped hydro project plans to utilise two naturally occurring granite basins, with a height differential of 600 metres and located 2.5 kilometres apart to create a closed-loop pumped hydro plant that will be able to generate up to 900 MW of power that can be readily fed into the grid.
Ken Woolley, executive director of merchant energy at Alinta, said the Gamuda Ferrovial joint venture was chosen as a partner for the project due to each company’s expertise in large-scale, complex infrastructure construction projects.
“Gamuda and Ferrovial have proven expertise in tunnelling, hydro and geo-tech, which makes this JV the perfect partner to deliver the most advanced pumped hydro project in NSW,” he said. “We are excited to work together to progress this project.”
Alinta is aiming to commence construction around mid-2025, pending final planning approval from state and Commonwealth governments.
The company said the project is expected to inject more than $40 million into the regional economy and employ up to 800 people during construction.
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