The Queensland Government is set to invest $50 million into Evolution Mining’s Mt Rawdon pumped hydro project through Queensland’s publicly-owned energy generator and retailer CleanCo.
The Mt Rawdon project is owned via a 50:50 joint venture between Evolution and ICA Partners, an advisory firm.
The project involves converting the Mt Rawdon gold operation into the Mt Rawdon pumped hydro project, which is expected to provide up to 20 gigawatt hours of renewable energy storage to aid Queensland’s energy transition.
The investment from the Queensland Government aims to help progress the project towards a final investment decision (FID).
“We committed to progressing smaller, more manageable pumped hydro projects, and this fires the starters gun on the first of these projects,” Queensland Treasurer and Energy Minister David Janetzki said.
Evolution executive chair Jake Klein welcomed the funding, describing the Mt Rawdon project as “one of the most advanced, lowest capital intensive pumped hydro projects in Australia”.
“Evolution Mining has operated Mt Rawdon for over a decade and throughout this time has enjoyed outstanding community and Indigenous partner support that has contributed significantly to the operation’s success,” Klein said.
“We welcome the (Queensland) Government’s interest and involvement in this landmark project, which is set to facilitate low-cost green power and provide jobs to the community and Queensland for decades to come.”
ICA executive director Michael Siede echoed similar sentiments.
“Mt Rawdon is an ideal site for pumped hydro with its steep topography, proximity to the grid and well-known environmental and geological footprint,” Siede said.
“We are delighted to work with CleanCo and the Queensland Government to deliver the Mt Rawdon pumped hydro project.
“This project will be instrumental in the transition of the Queensland energy sector to renewable energy by providing low-cost, long-term energy storage for Queensland’s abundant solar resource.”
Evolution, ICA and CleanCo have also entered into a development investment agreement in relation to Mt Rawdon.
CleanCo has agreed to provide $30 million in initial funding to the project for further feasibility work, which is expected to be completed by September 30.
CleanCo also has the option to acquire the project from Evolution and ICA via an upfront payment of $50 million, which would be shared equally between Evolution and ICA. The option is exercisable on or before September 30.
If CleanCo exercises the call option and if a FID is made on or before June 30 2028, then CleanCo would make a further payment of $100 million for the acquisition.
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