Ann: Kidston Hydro Project Update, page-5

For anyone interested in how this CAPEX change impacts the LCOS and CAPEX/MWh I created some rather timely and accurate models below. Looks like it aged well, after all. If you're short on time, it's minimal. I'll be able to look at profitability in the near-term but I'm expecting much the same.

https://hotcopper.com.au/threads/kidston-v-hornsdale-assessing-price-increases-in-pumped-hydro-li-battery-projects.5469543/

On today's announcement, fantastic! Positive news all around and good to have updated certainty around the construction pricing. Sounds like J-POWER won't be JV partner, which allows them to continue with the original agreement.

If the only current holdup is the Queensland Government's funding package of the transmission line and it's O&M, then confidence is due. It is highly unlikely they would boast about the $132m in funding and 500+ jobs and then get cold feet as the economy desperately needs it.

Jackie Trad (QLD Fed Gov't) was lobbying hard on our behalf back in March and April per RE - The report also noted that Queensland deputy premier and Treasurer Jackie Trad was applying pressure to the federal government for its role in supporting the project, via the up to $610 million NAIF loan. “Unlike NAIF, that money is not a loan – it’s cold hard cash for Powerlink to connect Kidston to the grid, to get the power pumping. This is a project that would deliver 500 jobs during the first two years of construction, and 30 permanent operational jobs. Adding 250MW of renewable energy to the grid would support more jobs in more industries in Townsville and other centres".

The transmission is necessary to ensure we can also develop K2W in the short-term, and K2S further down the track.

Cheers
Jeremy