Stanwell has completed a prefeasibility study for a hydro-electric power station on the Burdekin Falls Dam.
Energy, Biofuels and Water Supply Minister Mark Bailey said the study confirmed there were no fatal flaws in the concept and that the proposed project would be commercial.
“It also confirmed that a Burdekin Falls Hydro Power Station could be built on the existing dam without impacting the water releases from the dam and with minimal environmental impact,” he said.
“Stanwell, which owns and operates several hydro-electric power stations across Queensland, will now prepare a detailed business case for the construction and operation of the hydro-electric power station to be completed by July 2018.
“Subject to outcomes of the business case, construction would commence in 2020.”
Mr Bailey said $386 million had been set aside to strengthen and diversify power and water assets in North Queensland under the Powering North Queensland Plan.
- $150 million reinvestment of Powerlink dividends for the development of strategic transmission infrastructure to support a clean energy hub;
- $100 million reinvestment of Stanwell dividends to help fund the proposed hydro-electric power station at Burdekin Falls Dam;
- $100 million equity injection and reinvestment of dividends towards improvement works to ensure that the Burdekin Falls Dam continues to meet design standards; and
- commissioning a hydro-electric study to assess options for deploying new hydro in the state, including North Queensland.