Alinta signs early contractor deal for first multi-billion dollar pumped hydro project

Australian energy major Alinta has signed an early contractor deal that will lay out plans for what it hopes to be its first pumped hydro project.

Alinta’s multi-billion dollar Oven Mountain pumped hydro project is one of a number jockeying for position in Australia’s main grid, as the focus turns to longer duration storage to back up the growing amount of wind and solar that will provide more than 80 per cent of generation by the end of the decade.

Pumped hydro, however, has been sidelined in the various competitive tenders by battery storage, which is proving cheaper and more easier to build. The cost blow outs at Snowy 2.0, and the now canned Pioneer Burdekin project in Queensland, has highlighted the difficulties in managing civil engineering costs.

But pumped proponents, and those of other longer duration storage technologies such as compressed air and solar thermal, argue that deeper storage is needed for a high renewables grid.

The early contractor agreement for Oven Mountain has been signed with Malaysia’s Gamuda, in a joint venture with Spain’s Ferrovial Construction, and will include project design and constructibility,

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. It will likely be sized at 900 megawatts (MW) and eight hours (7,200 MWh) of dispatchable generation.

Alinta hopes to get planning approvals soon. If it is built it will likely be ready in the early 2030s.

“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,” said Ken Woolley, the head of merchant energy at Alinta.

The company owns the Loy Yang B coal fired power station, is seeking to buy Tetris Energy, has a preliminary feasibility licence for the Spinifex offshore wind project in Victoria, is building a big battery at Wagerup in W.A., and has a growing portfolio of wind and solar developments.

Ewan Yee, Gamuda’s CEO, said the company is excited about the appointment as it continues to deliver on its strategy to become a leading sustainable energy contractor. 

The Gamuda and Ferrovial joint venture partners will build on an already strong foundation, currently delivering another piece of major infrastructure in NSW, the Coffs Harbour bypass project.

“This appointment builds upon our ongoing success in the Australian market and allows us to showcase our experience in delivering large-scale hydro projects. We are excited to again partner with Ferrovial to deliver this exciting and game-changing project for Alinta Energy and NSW.”