Alinta signs contractor deals for Australian 7.2 GWh pumped hydro project

Chinese-owned Alinta Energy has signed an early contractor involvement agreement with a Gamuda and Ferrovial Construction joint venture (JV), to advance the design of its AUD 1.3 billion ($855 million) Oven Mountain pumped hydro energy storage project, planned for northern NSW.

Oven Mountain is an “off-river” site next to the Macleay River, between Armidale and Kempsey and within the New England Renewable Energy Zone. Alinta said the site will produce up to 900 MW of electricity and store enough water to provide up to eight hours of dispatchable, reliable energy at full generation.

Alinta lodged an environmental impact statement for the project with the NSW planning department in 2023 and project director Anthony Wiseman said the agreement with Gamuda and Ferrovial is about working through project costs and construction matters.

“In this phase, we’re ensuring that we can get the parts, we can get the materials, we can get the labor, and at the right cost, so that construction can commence once we receive our remaining approvals and make a final investment decision,” said Wiseman. “It’s exciting but we still have a lot of work to do to make this project a reality.”

Alinta, owned by Hong Kong holding company Chow Tai Fook Enterprises, said long-duration energy storage is crucial for Australia’s energy transition and the Oven Mountain project is well placed to form part of NSW journey to replace coal-fired power and support the addition of more renewables to the energy system.

Oven Mountain would use two natural granite basins with a height difference of 600 m and 2.5 km apart to create a closed-loop pumped hydro plant able to generate up to 900 MW of power to be 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 geotech, 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 wants to start construction around mid-2025, pending final planning approval from the state and Commonwealth governments.

The company said the project is expected to inject more than AUD 40 million into the regional economy and to employ up to 800 people during construction.

From pv magazine Australia.