From coal to vanadium batteries: Copperstring gets another $1bn from fossil fuel royalties

Queensland Labor has made its second transfer of funds from coal royalties to the CopperString 2.0 transmission project, this time through a $1 billion downpayment that will kick off early works on the 1,100km link connecting North Queensland to the state’s renewable SuperGrid.

The Palaszczuk government said on Thursday that $594 million of the new funding would go towards kick-starting construction of Copperstring, which promises to unlock up to 6GW of renewables in the North Queensland REZ and more than $500 billion dollars in new critical minerals.

Plans to build the massive transmission line between Townsville and Mount Isa were put on the fast track in March, when the state government announced it had bought and would develop the $5 billion project.

At the time, Premier Annastacia Palaszczuk promised to get early works on the project underway this year, with construction planned to commence next year, led by the state’s publicly owned transmission business Powerlink.

The premier then also made a $500 million down payment from the state’s coal royalties fund into Copperstring.

“CopperString is the most significant investment in economic infrastructure in North Queensland in generations,” the premier said in a statement.

That promise was honoured this week, with a $20 million early works package for engineering and geotechnical awarded to CIMIC Group companies UGL and CPB Contractors.

CIMIC Group says the early works will cover detailed engineering design, field surveys, geotechnical surveys and geotechnical works.

This follows a previous Early Contractor Involvement agreement awarded to the UGL and CPB Contractors Joint Venture in 2021 which included scoping, design, site investigations, pricing and progress of the design and construct contract.

“Copperstring 2032 will be connected to the Queensland SuperGrid, the nation’s largest energy grid, meaning that wherever energy is generated–we can capture it, send it, store it, and use it wherever it is needed,” said Queensland energy minister Mick de Brenni on Thursday.

“As CopperString 2032 progresses we’re also set to see a number of high quality renewables resources become available in the Hughenden region – a region that has the potential to become Australia’s largest Renewable Energy Zone (REZ).

“The Palaszczuk government is also committed to maximising local supply chain opportunities by leveraging our Buy Queensland procurement policy to bring component manufacturing for the Queensland SuperGrid, to regional Queensland.”

To that end, the announcement of the new wad of coal cash for Copperstring was made at the official opening the $26 million Townsville Vanadium Battery Manufacturing Facility, which received support through the Queensland Jobs Fund.

The Vecco Group facility will produce the electrolyte needed to manufacture vanadium batteries, an emerging battery technology that will be critical to support the world’s transition to renewable energy.

As part of the funding agreement, Energy Queensland and Vecco Group will work together to assess the benefits and technical considerations for connecting more vanadium batteries to the electricity network.

“I want to see vanadium mined in Queensland, processed in Queensland, and made into vanadium batteries here in Queensland,” said Palazczuk at the opening.

“This is just the beginning of the manufacturing and mining jobs boom that our investment in CopperString 2032 delivers for North Queensland,” the premier said.

“Our government is proudly backing more full-time secure Queensland manufacturing jobs like these, and it’s Copperstring 2032 that will unlock the full power of the north,” added minister for resources Scott Stewart.

“If we don’t manufacture our future, someone else will.”

Scott says about 800 jobs will be supported through the construction of Copperstring and, with the new funding and contracts, works on the 500kV line will be fast-tracked “towards construction commencing in 2024.”

CIMIC Group executive chair Juan Santamaria says his companies have a track record of high voltage power projects in Australia’s remote regions, having installed more than 6,500km of transmission lines across the country.

They are currently working alongside Powerlink to build the 275kV electricity transmission line and associated switching station to connect Genex’s hybrid renewables and pumped hydro project at Kidston.