Genex Power Ltd (ASX:GNX) has launched the main construction activities at its 250-MW Kidston pumped-storage hydro project in Queensland, Australia.

Building works have begun with tunnel digging at a disused Kidston gold mine, Sydney-based Genex, which owns the project, said on Friday.

A joint venture between McConnell Dowell and John Holland Group that is tasked with delivering the AUD-777-million (USD 559.3m/EUR 493.4m) project. Their engineering sub-contractors are Mott MacDonald and GHD.

Genex expects works on the main access tunnel to be finalised in early 2022. The Kidston complex is due to become operational in the last quarter of 2024. EnergyAustralia is the off-take partner.

The project will create the first such facility to be built in Australia since 1984. Financial close was achieved in May 2021.