Future North - Smart Energy...Queensland that can harness low cost green energy to process the minerals of the future, will be in a most advantageous economic position. 4. Natural

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Future North

Opportunity for a diverse economy and prosperous future for Northern Queensland

Establishment of North Queensland Development and

Diversification Fund

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Future North

Opportunity for a diverse economy and prosperous future for north Queensland. Recommendation for the establishment of a North Queensland Development and Diversification Fund to support the financing of major infrastructure projects

Prepared in conjunction with the Smart Energy Council, PO Box 231, Mawson, ACT 2607 www.smartenergy.org.au Prepared By Oliver Yates Kevin Holmes October 2019

Disclaimer: This Future North Report has been prepared by authors Oliver Yates and Kevin Holmes in conjunction with the Smart Energy Council. It has been prepared from information provided directly to the authors by project proponents or from publicly available information. The Smart Energy Council involvement in this report does not necessarily mean that it endorses every project opportunity.

http://www.smartenergy.org.au/

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Table of Contents SECTION 1 EXECUTIVE SUMMARY ............................................................................................................4

1.1 THE POTENTIAL ......................................................................................................................................... 4 1.2 COMPETITIVE ADVANTAGES ......................................................................................................................... 4 1.3 GOVERNMENT ASSISTANCE .......................................................................................................................... 5

SECTION 2 INTRODUCTION ......................................................................................................................7 2.1 PURPOSE OF THIS REPORT ............................................................................................................................ 7 2.2 VISION FOR FUTURE NORTH ......................................................................................................................... 8 2.3 FUTURE NORTH SUPPORT REQUIREMENTS ...................................................................................................... 9 2.4 THE CHANCE TO BECOME A SUSTAINABLE AND DIVERSE ECONOMY ...................................................................... 10

SECTION 3 VALUE PROPOSITION OF FUTURE NORTH ............................................................................. 11 3.1 ALTERNATIVE NARRATIVE .......................................................................................................................... 11 3.2 PROJECT OPPORTUNITIES ........................................................................................................................... 11 3.3 EMPLOYMENT BENEFITS ............................................................................................................................ 12 3.4 ECONOMIC RISKS ..................................................................................................................................... 12 3.5 PROJECT SUPPORT REQUIREMENTS .............................................................................................................. 13 3.6 NORTH QUEENSLAND DEVELOPMENT CORPORATION (NQDC) ......................................................................... 13 3.7 TABULAR SUMMARY OF PROJECTS BY INDUSTRY SECTOR INCLUDING ESTIMATED CAPEX AND JOBS ............................ 15

SECTION 4 INDUSTRY SECTOR ANALYSIS ................................................................................................ 17 4.1 SCOPE OF THE REPORT .............................................................................................................................. 17 4.2 AQUACULTURE ........................................................................................................................................ 17 4.3 WATER INFRASTRUCTURE .......................................................................................................................... 17 4.4 BIOFUELS ................................................................................................................................................ 18 4.5 HYDROGEN AND AMMONIA ....................................................................................................................... 19 4.6 RENEWABLE ENERGY AND TRANSMISSION INFRASTRUCTURE ............................................................................. 19 4.7 TOURISM ................................................................................................................................................ 20

SECTION 5 PROJECT SUMMARY TABLE ................................................................................................... 22 5.1 PROJECT MAP OVERVIEW .......................................................................................................................... 35

SECTION 6 DETAILED PROJECT DESCRIPTIONS ........................................................................................ 36 AQUACULTURE ..................................................................................................................................................... 36 BIOFUELS ............................................................................................................................................................. 36 TOURISM ............................................................................................................................................................. 36 WATER ............................................................................................................................................................... 36 RENEWABLE ENERGY ............................................................................................................................................. 36 TRANSMISSION INFRASTRUCTURE ............................................................................................................................. 36 MANUFACTURING ................................................................................................................................................. 36 MINING, PROCESSING AND MANUFACTURING ............................................................................................................ 36 6.1 AQUACULTURE PROJECTS .......................................................................................................................... 37 6.2 BIOFUELS PROJECTS .................................................................................................................................. 41 6.3 TOURISM PROJECTS .................................................................................................................................. 46 6.4 WATER PROJECTS .................................................................................................................................... 72 6.5 RENEWABLE ENERGY PROJECTS................................................................................................................... 79 6.6 TRANSMISSION INFRASTRUCTURE PROJECTS ................................................................................................ 103 6.7 MANUFACTURING PROJECTS .................................................................................................................... 110 6.8 MINING, PROCESSING & MANUFACTURING PROJECTS .................................................................................. 117

SECTION 7 PROJECT PROPONENTS: CONTACT DETAILS ........................................................................ 126

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Section 1 Executive Summary

1.1 The Potential

North Queensland has the potential to become a major growth engine for diversified Australian exports. Few places in the world have such underutilisation of natural resources, existing infrastructure resources and people resources, all within a stable geopolitical environment as exists in this region. These key resource areas provide a sustainable competitive advantage that should provide confidence to the region’s long-term prospects.

Resources in northern Queensland remain underutilised primarily due to a lack of the necessary financial investment in projects and industries for the region to grow. Because of remoteness and distance, the region is financially disconnected from Australia’s main capital markets, making it surprisingly difficult for private sector participants to secure the investment interest and capital they need to open up and tap these resources. This financial disconnect needs to change, for the economic betterment of both the region and in turn Australia.

While the region is presented with multiple new opportunities to diversify and grow its economy, some of the region’s more traditional industry sectors face an inevitable transition challenge. If the region can attract the investment it needs now for a diversified economy, then a holistic regional economic ecosystem will emerge in north Queensland, ensuring the region’s long-term success.

This Future North report presents a pathway for the region to develop its world leading resources through project opportunities, of which many are very well advanced. For each of these opportunities, the report identifies measured, controlled and manageable levels of government support that could be considered. It proposes the establishment of a new body that will facilitate the financial infrastructure the region currently lacks, catalyse private sector investment and unlock the region’s enormous potential.

This report is primarily based on discussions with proponents of a wide range of projects that they are currently trying to launch across the region. Near term project opportunities could involve some $15 billion of capital investment and create over 8,000 construction jobs and more than 7,000 enduring and diversified jobs when the facilities are in a steady state of operation.

1.2 Competitive Advantages

From the projects proposed in the region, it should be clear that northern Queensland has significant sustainable competitive advantages in the following areas.

1. Energy resources. Regardless of the source of energy, be it traditional fossil fuels or new clean energy resources, the region has access to strategically low power prices, so long as there is appropriate investment in transmission, generation and localised industries.

2. Mineral resources. The demand/supply outlook for key minerals within the region is highly positive. In addition, it will become a supplier of many new age minerals that emerging industries will increasingly utilise, particularly in lower emission energy solutions. Furthermore, it has other minerals that will be needed to enable the ever-increasing supply of food to be produced globally.

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3. The combination of low energy prices and abundant mineral resources presents the region with a natural competitive advantage in the value add of resources prior to their export. As the world takes greater action to address climate change, regions such as northern Queensland that can harness low cost green energy to process the minerals of the future, will be in a most advantageous economic position.

4. Natural beauty. As global tourism continues to grow, the value of unspoilt environments will grow with it. Whilst the Great Barrier Reef is under environmental stress, the outlook for tourism in the region is still very strong. Several significant new resort developments are identified and proposed in this report that seek to capture the growth in visitations, especially from Australia’s northern neighbours.

5. Strategic location for the aquaculture industry. Located on the Great Barrier Reef, the global brand potential for aquaculture in such an iconic region should not be underestimated. Progress has been held back because of perceived conflicts between the industry and water quality management issues in the reef locality. That is no longer the case. With this now solved, the ability for the aquaculture industry to grow and become a major exporter of seafood to Asia is significant. In fact, the industry’s wastewater management solution should also be used in municipal wastewater systems in the region that are currently responsible for discharging over 500 tonnes of nitrogen a year into the reef. These are further project opportunities identified in this report.

6. Both land and water resources abound in the region. In most parts of an increasingly urbanised world, access to land and water is a growing problem. In north Queensland, however, land and water are both underutilised. If the projects such as Big Rocks Weir can demonstrate the economic return available from combining the region’s water resources with abundant land, it would strengthen the case for some mega water projects such as Hells Gate Dam and the Hughenden Irrigation Scheme, subject to environmental considerations.

1.3 Government Assistance

The report recognises that early developments in a new region will face significant financing challenges where there are no comparable reference points. This report recommends the establishment of a Queensland government-owned body called, for example, the North Queensland Development and Diversification Fund (“NQDDF”) along the lines of the federal government’s successful Clean Energy Finance Corporation. The NQDDF will provide expertise, financing leadership and capital itself where necessary, to attract private sector investment into the region. The NQDDF will target new industry sectors and areas of business where financing and investment is lacking. The proposed budget impact would be initially limited to $20 million per annum over three years to cover establishment and operations. There would also be a budget allowance for a moderate amount of concessionality of say $100 million over the life of the NQDDF, although we wouldn’t expect this to be fully utilised.

The north Queensland region has enormous potential to develop into an enviable economic powerhouse. For too long its potential has been ignored or underrated by governments and at times, its own people, who have relied very heavily on the mining sector for their livelihoods. This is natural as it is the mining sector that has traditionally attracted capital into remote regions. With access to global commodity prices, mining has the advantage of well-functioning market pricing for its products which in turn, has provided certainty for investors. However, with some targeted

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government intervention now, as proposed in this Future North report, the region no longer needs to rely so heavily on traditional mining for its future.

Through the project opportunities, government support and the facilitation of finance by the NQDDF, all as outlined in this report, north Queensland can develop and diversify its economy and have the financial infrastructure it needs to thrive.

This Future North report illustrates how less traditional industry sectors, if supported by government, can rapidly develop and build their own strength and track record to attract investment capital to build the diversified economy and a breadth of jobs and careers that citizens of the region deserve.

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Section 2 Introduction

2.1 Purpose of this Report The fundamental premise of this report is that people in northern Queensland need sustainable, long-term jobs, driven primarily through private sector investment. With the inevitable global transition to a cleaner world economy, people also need to transition to jobs in new diversified industries. This report provides the Queensland Government with a plan to deliver these jobs. Opportunities abound for investment in a diverse and resilient future economy for the north Queensland region. Such Investments could be accelerated, catalysed and managed by a newly established state-owned North Queensland Development and Diversification Fund (“NQDDF”), designed along the same lines as the federal government's successful Clean Energy Finance Corporation. The diversity of industry investments would include aquaculture, water infrastructure, biofuels, hydrogen and ammonia, transport, mining and processing, renewable energy, battery manufacturing, energy transmission infrastructure and tourism. This report presents real opportunities to rapidly accelerate investment in new projects in northern Queensland that will create many thousands of jobs, both in the construction phase and enduring jobs during operation. With private sector funding commitments well advanced in many projects, the report Identifies a range of support requirements and activities that the Queensland government would need to undertake to allow the projects to be accelerated, ranging from policy, legal, contractual, regulatory or Investment support. Assuming the Queensland government accepted the merits in addressing the identified roadblocks of these projects, this report then outlines, at a macro level, the significant economic benefits of a multiple diversified investment strategy, rather than a continued focus on large concentrated projects, especially in the coal sector that will have a challenged future. Such a diversified strategy will provide a far better outcome in the longer term for those living and working in northern Queensland. Diversity of opportunity will bring confidence and strength to the region, allowing it to flourish. In summary, this report:

1. Is an update of the Future North report first prepared In May 2017, noting that many of the projects identified in the original report have now proceeded with a modest amount of government support from the federal government-owned Clean Energy Finance Corporation (“CEFC’) and ARENA.

2. Contrasts the benefits of a diversified approach over large, remote projects which lack a sustainable future.

3. Outlines the various support arrangements and activities the Queensland government could initiate to accelerate the projects in this updated report, including indicative budget implications.

4. Suggests a governance structure for the establishment of a state-owned NQDDF. 5. Presents a compelling basis for ongoing advocacy of the merits of these projects and the

contribution they can make to a diversified economy and a prosperous future for northern Queensland.

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2.2 Vision for Future North

With vision and the right investments, communities in the northern Queensland region have a wealth of diversified and real development opportunities to secure their future. The region is well endowed for a diverse and resilient economic future.

The rich abundance of natural resources in this region offers the potential to drive an economic powerhouse – benefiting not just the north Queensland region, but all of Australia. This report clearly shows that the opportunity is more achievable now than ever before.

This Future North report provides an inventory of very real and achievable projects that will attract significant private sector capital and provide meaningful and sustainable jobs for the northern Queensland region. These projects will propel the northern Queensland economy forward in more diverse, resilient and adaptive ways for decades to come.

Some of the key goals of Future North for the region will include:

• Targeted and more efficient financial investment in local industry and infrastructure through the establishment of the NQDC, drawing in private sector capital.

• Support for future ‘sunrise’ industries with potential for replication and sustainable long-term growth development.

• Lowering energy costs to enhance industry productivity, particularly for commodity-based operations

• Positioning northern Queensland as a competitive low-cost producer and exporter of energy, minerals, food and biofuels

• Creating opportunities to significantly grow local employment and attract the best new talent

• Establishing connectivity of markets and industries to the rest of Australia and the world • Developing the region’s enormous tourism potential

Already, the economy of northern Queensland is evolving with the recent completion of a range of renewable energy projects that are now commencing operation. However, with a diverse range of even more significant opportunities in the pipeline, communities need assistance to best capture their incredible potential and value for the northern Queensland region. Time is of the essence to bring these projects to fruition to enable the region to become a thriving, sustainable and diverse economy for generations ahead.

The breadth and size of the development opportunities outlined in this Future North report can secure a prosperous future for northern Queensland, regardless of the success or otherwise of any future thermal coal projects or the need to address climate change. This report presents a blueprint for northern Queensland that will drive the region’s economy forward in a more diverse, resilient, adaptive and sustainable way.

Significant investment in the most recent round of renewable energy construction is concluding, but much more could be unlocked to provide cheap and sustainable power for a range of new industries. Northern Queensland is blessed with significant, natural and sustainable competitive advantages that can be utilised to build a strong diverse economy. Communities in the region need to understand the potential of the region and reach for a Future North.

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2.3 Future North Support Requirements

In summary, developing Future North requires the following support:

1. Access to capital and investment support through the NQDC. It is an unfortunate reality that northern Queensland is given scant attention and is highly under-serviced by the finance sector. Therefore, and as with any developing economy, it is proposed that the Queensland government establishes a regional development and investment entity that would be similar to the CEFC, to help develop and fund to all sectors of the economy. The focus of the NQDC should be to improve general financial liquidity for investment in north Queensland and to support new industries that show potential for project replication. This development bank should operate with the same independent governance and commercial principals as the CEFC, with a mandate to accelerate projects as fast as possible, whilst optimising private sector investment and utilizing government concessionally only as needed.

2. Fostering a pipeline of strong diverse projects in the north Queensland that will provide the diversity of industries and employment that region needs. This report sets out these projects and any additional support that would assist in accelerating their development. Most importantly, many of these projects are replicable. Once they prove that they can operate and generate a commercial return, they will be copied by the private sector without the need for any additional support. In turn, a multiplier effect will occur. Supporting early projects through the NQDC is important as they will demonstrate the competitiveness the projects/industries in the region. Some of these projects should be given urgent attention to address their roadblocks, to start construction and provide jobs as soon as possible. It is important to note that some of these projects have not yet come to fruition simply because they have not received the support that other more traditional projects have received.

3. The region needs to upgrade its water infrastructure and the recent establishment of the

North Queensland Water Infrastructure Authority is a positive development. Building projects like the Big Rocks Weir and Rockwood Weir and potentially building Hells Gate Dam, Hughenden Irrigation scheme and/or raise the existing Burdekin Dam wall are all projects that will help establish the region’s potential as an agricultural and bioenergy/bio-plastics hub. Having proven the economics of the high value agricultural activities and biofuels projects identified in this report, the further potential of Future North will massively expand into bioenergy, bioplastics and aquaculture industries within the region, using the additional water and the region’s soils, sun and access to sea.

4. New transmission corridors are needed but they must be accelerated now. A number of electricity transmission projects identified in this report need to be developed to reach renewable energy projects like the Kidston pumped hydro storage facility, the Kennedy Energy Parks and solar farms that will allow the region to obtain greater diversity of renewable energy generation. Currently parties are delaying their investment commitments pending a decision on the government’s priorities. Clarity is urgently needed. Discussions are already underway about how this infrastructure can be funded with support from the CEFC/NAIF and the Queensland state government. These projects will further reduce power prices when they come on stream.

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5. Very significant utility scale solar projects have now been constructed in the region and more is possible once transmission roadblocks are addressed. The energy status of the region has been transformed, reversing the energy direction and sending its power south. The region is a highly attractive area for both wind and solar renewable energy generation, which is now cheaper than ever before. This solar revolution was initiated with the financial support of ARENA and the CEFC, combined with private sector investors who foresaw that renewables are a more competitive and sustainable energy source than new fossil fuel generation in this region. Access to cheap power will complement the other natural competitive advantages of northern Queensland for it to become an economic superpower for Australia. Of particular note is the complementary nature of wind and solar resources in the region to provide steady loads with reasonable predictability.

2.4 The chance to become a sustainable and diverse economy

The vision for Future North is deliverable and clear, but time is of the essence. Developing diverse industries and projects will be critical to the region. The transition from fossil resources will continue at pace, due to global climate change considerations. The future for thermal coal in the region is significantly challenged as global demand is declining.

Efforts are also underway to develop technological alternatives to metallurgical coal in steel production. The region cannot be anchored to its past and it must seize the exciting opportunities presented in this Future North report.

There is a real risk that the region will lose this chance to become a sustainable and diverse economy if it cannot capture the investment opportunities in the emerging industries of the future. Continued investment in the internationally declining thermal coal industry will drain the resource capacity of the region. Such traditional investments run the risk of stalling before they are completed or rapidly becoming stranded assets.

Development of northern Queensland can be accelerated with more focus of time, effort and money from the banking fraternity. It will require entrepreneurship, connectivity and highly focussed development mindset to secure the opportunities presented. There can be more of everything for the region.

We want northern Queensland to prosper and capture macro trends for growth. It has the land, minerals, beauty, water, sun and wind resources for many future sunrise industries. The region can readily export power and biofuels. With solar and wind, the region can be the lowest cost producer of energy, powering new local industries and exporting surplus power to the south. Lower prices for power can also drive a thriving commodity and minerals processing industry.

Rather than the unsustainable jobs of the past, there are abundant and exciting employment prospects in sunrise and growth industries. To achieve this, we need greater intellectual focus and talent to push the Future North opportunities forward. We want to capture that talent and build permanent networks and connections to Asia; grow the population and create an ever-growing pipeline for further deal flow and investment.

This report provides a pipeline of many of the major projects already being considered but still need help to reach financial close. It sets out their scale and potential to attract massive investment and provide diversified employment.

Importantly, Future North demonstrates the diversity of opportunities for the region that should be captured to provide the employment prospects and economic prosperity that will be so critical to the development of a strong regional economy.

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Section 3 Value Proposition of Future North

3.1 Alternative Narrative

This Future North report is intended to provide an alternative narrative about project and employment opportunities in a more diversified economy in northern Queensland. Many stakeholders are concerned that the construction of another large, inland project could crowd out broad, strong skill-based jobs across the community. Given the inevitable global transition to a cleaner economy, that project could also become a stranded white elephant in a few years’ time, causing catastrophic disruption to local communities.

This updated report provides a summary of the potential projects, their development status, job opportunities and the key issues that would need to be resolved to rapidly bring the projects to fruition. It describes the potential for northern Queensland to grow a diversified economy that will be critical to its longer-term sustainability.

Northern Queensland, with its abundance of natural resources and breadth of project opportunities, is well placed to take advantage of the inevitable transition to a cleaner global economy. Alternative projects will provide a ‘pull through’ of new technologies to diversify the economy away from traditional energy sources and provide a breadth of new industries and job opportunities within the local communities.

The region is blessed with significant solar, wind and water resources and plenty of space across a large geographic footprint. It also has world class agricultural resources for the likes of biofuels and biomass. It will also remain the home for strategic minerals for the future economy, such as cobalt, rare earths, zinc and copper. Metallurgical coal will also remain part of the mix until such time as we have a viable alternative solution for steel making. Of course, we need to manage this transition very carefully so that people in local communities can reskill and take jobs in the emerging new industry sectors. With vision, courage and some government support we can advance projects in northern Queensland that can be an economic superpower for the rest of Australia, with an abundance of very cheap renewable energy, supported by storage that can be reliably dispatched at any time of the day to drive all forms of existing and new industries. Northern Queensland has an enormous competitive advantage that needs to be grasped to drive economic prosperity and a sustainable future that will be the envy of the country. 3.2 Project Opportunities The potential projects presented in this report represent opportunities for long-term, sustainable jobs across a diverse range of industries. The amount of intervention and support from governments and other parties to make these projects happen varies from none at all, to a reasonably measured amount. Many of the projects will be very replicable and follow-on projects will likely require no, or at least less government support going forward. This multiplier effect will further accelerate population, employment and economic growth in the region. A diversified economy that captures its abundant natural resources to drive projects that are close to existing communities is a great opportunity for the people of northern Queensland.

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The potential projects presented in this report and summarised in the table in Section 3.7 below involve the following industry sectors: aquaculture, water infrastructure, biofuels, hydrogen and ammonia, transport infrastructure, mining, renewable energy, battery storage, transmission infrastructure, and tourism. This table reflects the authors’ realistic estimation of the likely direct jobs available from such projects. We note that some project proponents may have indicated higher job numbers in the detailed project information they have provided for this report, either during construction or in operation. We have considered the complex logistics implications of managing over 500 people on a site at one time and we have therefore capped construction jobs at 500 for such projects. We have also limited the direct ongoing jobs at tourism developments to 1,000 per project. It should again be noted that these numbers reflect direct jobs, whilst many more indirect and support jobs will also be created. This report is not intended to be an exhaustive list of all projects, but rather a selection of projects to demonstrate the diversity and breath of opportunities that will create long term employment prospects and attract private sector capital. Together with publicly available information, the report provides the latest status from project proponents seeking to develop their projects, including roadblocks they face. 3.3 Employment Benefits

Overall these projects will attract some $15 billion in investment, creating around 8,000 jobs during their construction and over 7,000 diverse and enduring jobs during the operation of the various facilities. This compares rather strikingly to the proposed Adani thermal coal mine - that is not included in this report - but is projected to employ only 1,500 people during the construction phase and no more than 100 ongoing jobs once completed. There are over twice as many tourism jobs in tourism in northern Queensland as there are in mining. Perhaps surprising to some, even though Queensland produces a huge amount of coal and other minerals, it doesn’t produce a huge amount of jobs. 3.4 Economic Risks There is a significant risk that if the infrastructure for the Adani mine is built, it is likely that the rest of the Galilee basis will, in turn, be developed and competing for manpower and resources that are needed across the region to build the diversified economy it needs. Aside from the major environmental impact, the additional supply of new thermal coal into a declining world market will drive down the market price of thermal coal, put existing coal mining jobs at risk. According to some estimates, this could amount to some 13,000 job losses across Australia. The risk of this disruption will drive up costs for the development of new industries in the region. With demand for thermal coal declining, production from any new mega mines would come at the expense of existing mines. Large new thermal coal mines in the Galilee Basin would displace coal production in other coal mining regions across Australia. Given new technologies, the Galilee Basin mines are highly likely to be largely autonomous with few ongoing jobs post construction. Should the world successfully limit climate change to well below 2 degrees of warming, fossil fuel extraction must rapidly decrease towards zero net emissions. Thermal coal is the most negatively

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exposed commodity in this scenario with obvious employment and economic risks to coal mining communities. There is a clear imperative to transition to new industries and sources of employment. 3.5 Project Support Requirements Requirements from the Queensland government for the proposed alternative projects are largely in four key areas:

1. Assistance in the construction of energy transmission infrastructure to provide systems strength for more renewable energy generation to be developed. The Copperstring 2.0 and other transmission infrastructure projects outlined in this report are key to providing the transmission augmentation that will in turn unlock significant new renewable energy capacity.

2. Various approvals such as environmental impact statements, mining leases and licences

could be accelerated in established resource basins and for projects in less environmentally sensitive areas. Whilst no special conditions are proposed, red tape needs to be removed to enable such approvals to be progressed in the most efficient manner. In business there is a very true statement that “time kills deals” and governments need to be highly attuned to the need for timeliness, especially of projects that could otherwise be located elsewhere in regions outside north Queensland. Project approvals for a mine that is site specific are less time sensitive than a manufacturing, processing or tourism facility and the public service needs to recognise there are plenty of projects across Australia competing for capital.

3. Long-term offtake agreements, other forms of pricing support or credit support, for the

likes of biofuels offtake and battery manufacturing. Such support enhancement is critical to optimise private sector bankability.

4. Establishment of NQDDF to provide long-term funding to complete the project financing

package and/or to catalyse private sector investment. The establishment of an independently governed, state-owned investment development bank will be key to facilitating government investment based on rigorous due diligence and commercial terms that will draw in the private sector capital that these project need.

3.6 North Queensland Development and Diversification Fund (“NQDDF”) Given the success of the federal government-owned Clean Energy Finance Corporation (“CEFC”) and conversely the challenges faced by the framework of the Northern Australia Infrastructure Facility (“NAIF”), this report recommends that a Queensland state-owned investment development bank or fund, the North Queensland Development and Diversification Fund (“NQDDF”) be established along the same lines as the CEFC. Importantly, the NQDDF would operate on commercial principles with an independent board comprising private sector investment experts and, given its investments in financial instruments, would target budget neutrality over time. The NQDC would progressively reach sufficient scale to cover its costs and would ultimately be profitable, providing a positive return to the state. The NQDDF could be wholly or partly owned by the Queensland government, with both the private sector and/or the federal government taking a partial interest in the institution. Its activities could be accelerated and complimented by working alongside the CEFC and the NAIF for co-investment opportunities.

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It is important that the institution has a flexible investment mandate where it will invest for both profit and for social purpose. It will operate under the highest standards of independent governance and invest across all industry sectors as outlined in this report. The state-owned NQDDF will effectively be the regional capital-deployment champion, managed in the region and operated in the region. The on-the-ground team will have connections and expertise to make the right investment decisions, free from any political interference. The board will comprise relevant experience and would not include government representatives that may otherwise influence investment decisions. Just like the CEFC, it would work with other financial institutions and investment groups to draw them towards the region and into projects. It would become a regional financing specialist and provide confidence to other financial institutions that have less experience with northern Queensland. Based on the pipeline of potential opportunities outlined in this Future North report, the NQDDF will have immediate investable opportunities to consider in its initial phase. Given the size and breadth of opportunities, the NQDC will grow into a profitable, enduring institution that will benefit the northern Queensland region long into the future. As was the case with the CEFC, it is recommended that the NQDDF has a 3-year establishment budget that would have a minor state budget impact of around $20 million per annum. As the NQDDF will seek to use concessionally very sparingly in its investments, it should have no, or minimal additional budgetary impact of less than $100 million. Where the NQDDF considers that certain projects warrant special consideration, it would approach the government with investment cases for special state support that could have more significant budgetary impacts.

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3.7 Tabular Summary of Projects by Industry Sector including estimated capex and jobs

Industry sector

Projects

Aggregate

Investment

Construction

Jobs

Operations

Jobs

Government Assistance Required

Aquaculture • Guthalungra Prawn Farm $100M 130 220 • $25M transmission loan Water Infrastructure

• Municipal wastewater upgrades / bioremediation

• Hughenden Irrigation • Big Rocks Weir • Hells Gate Dam • 15 Mile Irrigated Agricultural Dev’t Project

Total Water Infrastructure

$136M

$Uncertain $30M

$Uncertain 47

$213M

80

TBC 50

TBC 5

135

16

TBC TBC TBC

2 18

• Opex &/or capex support under a Build/Own/Operate model

• No further support required. • Funding of irrigation infrastructure • Funding of $25M feasibility study received • TBA

Biofuels • Pentland Bioenergy Project $800M 500 each stage 150 each stage • Pricing support. CFD for fuel. Hydrogen & Ammonia

• Gladstone Green Hydrogen & Ammonia Plant

$500M 300 30 • Funding support1

Mining and Processing

• Olive Downs Coking Coal • Winchester South Coking Coal • Amorphous Silica Project • Sconi Cobalt & Nickel Project

Total Mining

$450 M Stage 1 $500 M Stage 1

$663 M $1,000

$2,613 M

500 500 490 500

1,990

500 450 470 300

1,720

• Mining lease • EIS and mining lease • Funding support1

Renewable Energy & Energy Storage

• Kidston Renewable Energy Hub • Lakeland Wind Farm • Kennedy Energy Park • Clarke Creek & Haughton Solar Farms • Bunkers Hill Pumped Hydro • Mt Fox Energy Park • Lacour Clarke Ck Wind & Solar • Majors Creek • Kaban Green Power Hub

Total Renewable Energy

$1,100 M $220 M

$1,000 M TBC

$600-$800M TBC

$1,000M $450M $350M

$4,820 M

500 120 250 480 TBC 300 350 500 150

2,650

44 5

25 16

TBC 15 20 10 50

185

• Co-funding transmission line • Transmission augmentation • Transmission augmentation • Plus, govt underwrite of LT offtake • Funding support state significance & revenue model • Grid infrastructure & MLFs • Ready to proceed • Grid infrastructure & MLFs • No support required

Battery Manufacturing

• Lithium Battery Plant (3 stages) $2,100 M 500 each stage 350 each stage • Qld govt offtake support

1 Funding support. Provision of assistance in securing debt from federal agencies like the CEFC and NAIF, combined with private sector financing and, where necessary supplemented with additional finance from the NQDC

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Transmission Infrastructure

• Copperstring • Queensland Clean Energy Hub

$1,000 M TBC

400 TBC

40 TBC

• Numerous legislations & approvals

Tourism • Cassowary Coast Regional Airport • Great Keppel Island Resort • Castaways Resort & Convention Centre • Capricorn Resort • Nth Queensland Country Club • KUR – World Integrated Eco Resort Total Tourism

$100 M

$1,000 M

$70 M $600 M

$1,000 M $500 M

$3,270 M

300

260

220 500 Staged

300 300

1,880

150

1,000

170 1,000 1,000 1,000

4,320

• Feasibility funding, long-term fixed rate debt & public commitment to regional assets growth

• Funding support, improved lease terms & casino licence

• Funding support1 • Conclusion of EIS/ funding support • Accelerated approvals & LT debt • Accelerated approvals and LT debt

Grand Total

$15,416 M

8,480

7,033

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Section 4 Industry Sector Analysis

4.1 Scope of the Report

It is important to note that this Future North report is not a holistic inventory of all project opportunities in northern Queensland. Rather its scope is on significant near-term projects and emerging industry sectors which demonstrate the diversity of opportunities currently available to the region.

For instance, it only includes project opportunities north of Gladstone and it does not include many traditional projects that will readily proceed without additional support. The selected industry sectors and project opportunities are intended to offer a different discourse about sustainable job opportunities within a diversified economy, and any government support that will be required to make them happen.

The report proposes various macro changes to the approach in developing project opportunities in the region, as well as specific solutions and actions that need to be considered in individual industry sectors. We have set out specific strategies for the following sectors that will diversify the region’s economy.

4.2 Aquaculture

Aquaculture is a highly promising sector for development. Clearly seafood produced in this region and the marketing of its association with the Great Barrier Reef should enable the region to become a premium global producer.

The technology developed and applied by Pacific Bio could enable this region to become a world leading aquaculture centre, whilst co-exiting in harmony with the reef. It is the water quality around these facilities and the protection of the reef that will set them apart from global competitors. The project will represent a symbiotic relationship between industry and health of the reef.

The Queensland government should consider all possible to avenues to facilitate the construction and operation of the first new aquaculture facility which is likely to be the Guthalungra Prawn Farm. The government could then establish a certification regime for new facilities and even existing operations to ensure they operate to a leading mark of excellence, as zero net nutrient facilities

As this facility is replicable in the region and with world demand for high quality seafood rapidly increasing, there is an exciting and compelling prospect for the government to see these projects established across the region. In aggregate, these facilities could create a significant regional industry with considerable employment and export potential.

4.3 Water Infrastructure

There is an urgent need to address the totally unsatisfactory quality of regional waste facilities that are major contributors to reef nutrient pollution. In addition, proposed investment in water infrastructure such as weirs and dams, need to be carefully managed as silt flows and environmental flows can impact not only water quality but spawning cycles.

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Noting the obvious environmental concerns of water management and environmental flows, water infrastructure projects cannot be simply left to their own devices to address these concerns in the best interests of all parties.

Municipal wastewater facilities are a contributor to nutrient discharge into the Great Barrier Reef, with many north Queensland facilities not meeting international discharge standards, whilst they are compliant within existing grandfathered licences. Without motivation to change, either through regulatory, financial or community pressures, there will be no change to the quality of wastewater discharge. Provision of funds to support councils, who have a limited ratepayer fund base, to move to a cleaner wastewater management system is critical.

There are several large water infrastructure projects proposed in the region including Rockwood Weir, Hughenden, Big Rocks and ultimately Hells Gate. They are premised on the significant expansion of irrigated agriculture, especially in the high value horticulture sector. It is therefore critical that support is not just focused on the construction of the water infrastructure, but also on ways to ensure the private sector develops an industry hub in the region to make optimum use of the water.

Big Rocks will be the forerunner and how this project is managed will be critical to the future success of other water infrastructure projects. There are clear equity issues and arrangements need to be put in place to ensure that the land capable of being irrigated from Big Rocks is indeed used as a proving ground.

It is vitally important to bring the local farming community on this journey to higher value agricultural production. Farmers adjacent to the water infrastructure projects will see their land rerate in value, but they still might not be willing to invest what is necessary to convert their properties for high value agriculture production. Time and time again we see farmers wanting to stick with what they know and most in the region have little experience with high value crops.

Therefore, allied to these projects, arrangements will need to be put in place to liberate land at scale that can be make available for high value horticulture. To then incentivise operators to relocate skills to this region, arrangements will be needed to invest in, or lease property with irrigation infrastructure already installed. The lag between planting and income can be long in this sector, so it requires infrastructure investments with low costs of capital. Government investment in such long-term water infrastructure assets would significantly assist with the economics of these developments.

In summary, don’t assume you can simply build water infrastructure assets and ‘they will come’. Active incentive programs and follow on investment will be required in early projects to demonstrate the region’s capability to combine the water, soil and sun to generate significant commercial opportunities.

Due to the current uncertainty around these large water infrastructure projects, we have elected to largely exclude their contribution as significant employment prospects in the region at this stage.

4.4 Biofuels

There is currently one large biofuels project under development in the region known as the Pentland Bioenergy Project. Whilst it is not high value horticulture, it would demonstrate the potential of the region to utilise land and water at scale. Support arrangements should be considered rapidly move that project into commercial operation as, just like the prawn farm, once the project demonstrates clear commercial viability, it will be replicated in the region to clearly

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position it as a thriving agricultural hub. This project is focused on cane and sorghum as feed stock for biofuel and biomass production. It has the potential to encourage other operators into the region and create early demand for water from these new water infrastructure facilities.

To meet the carbon abatement challenge, the development of a biofuels/biomass and bioplastics hub is critical. Queensland is the ideal location and the active efforts and investment should be made to ensure this sector is firmly established in the region. The work that has already been done on this initial project demonstrates the potential of the region as a leading producer of biofuels/biomass and bio plastics.

4.5 Hydrogen and Ammonia

Given the continued rapid development and scale of the renewable energy sector, the economics are now in place to enable Australia to become a leading producer of green hydrogen and with that, all the other flow on chemicals. Gladstone is a major import terminal for chemicals such as ammonia. It is produced through the combination of hydrogen with nitrogen. Given the low cost of renewable energy, it is expected that green ammonia can be produced in Gladstone at a price lower than the costs of imported ammonia, creating a path to a significant and successful renewable hydrogen and green chemical business.

Ammonia is used in explosive production, fertilizer and increasingly in the mineral processing space. Based on proven engineering and viable project economics for such an exciting new sector, early projects should receive financing support to quickly move them to construction and into production. As is often the case with initial projects, traditional financiers are reluctant to lend. Therefore, support is required to demonstrate their viability and eliminate their perceived novelty risk.

4.6 Renewable Energy and Transmission Infrastructure

The renewable energy sector shows significant further promise in the region. Already significant investment has occurred, as was identified in the previous Future North report. For investment to continue in northern Queensland, decisions and commitments need to be made on significant transmission projects. Without new transmission infrastructure to evacuate the power, renewable energy investments will stall, except for some projects in the south of the region with special features.

Renewable energy in north Queensland is quite special. The combination of solar with diurnal wind patterns provides very high capacity utilisation factors, reliability and predictability. These resources can unlock strategically competitive electricity prices that, in turn, can power other low cost industries the region.

In discussions with project proponents, three transmission investments are necessary, namely CopperString 2.0, the Clean Energy Hub and an additional link south, known as Q-Link. Renewable energy project proponents are all waiting for decisions on these projects before making additional investment commitments. The first project that has the greatest prospect of unleashing significant regional investment is CopperString 2.0, an 1,100-kilometre line from Townsville to Mt Isa. It seems clear that linking the loads and electrifying the minerals province of north-west Queensland has significant merit.

• It would provide additional load that could be met by existing and future renewables projects.

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• It would allow the more rapid development of new minerals resources and significant growth prospects in the mining sectors.

• It would link in the gas generators in Mt Isa to the National network providing additional dispatchable capacity to the network.

• It would rapidly trigger the construction of Kennedy Phase 2 and other renewable energy projects.

Many current wind and solar farm operators are incurring revenue losses through the imposition of Marginal Loss (MLF) factors because of lack of load near to generation and systems constraints in evacuating the power. Whilst many of the projects proposed in this report will provide such load, there is also an imperative to upgrade the transmission infrastructure in the region to allow electricity to be exported south. CopperString 2.0 will provide some relief to allow load in the west to connect to existing and new renewable energy projects, but ultimately a new link to the south will be required unless significant additional local load is added in the region.

Whilst CopperString 2.0 and renewable projects should be able to secure financing support from the CEFC and NAIF, the Queensland government’s processes for resolving the network congestion issues and the approval of the transmission pathways should be accelerated where possible. In addition, if finance is not available from NAIF or there is still a financing gap, additional support might be needed to ensure this project rolls forward rapidly. As far as the Clean Energy Hub is concerned, Powerlink advised that ‘they have undertaken a feasibility study on behalf of the Queensland Government regarding the potential development and this study has been provided to the Government. The timing and scope of the Clean Energy Hub is a decision for the Queensland Government’.

In addition to the above transmission constraints, project proponents have raised another issue that they say will need to be addressed before the next wave of renewable energy projects can proceed. It relates to the newly legislated Electrical Safety (Solar Farms) Amendment Regulation that requires utility scale solar installations to be done by qualified electricians. They are concerned that this requirement will add to construction costs. Solar panels are installed prior to energisation of the facility, so they are effectively mechanical constructions. The view of the project proponents is that the requirement for qualified electricians for this work is excessive.

4.7 Tourism

The tourism sector has historically been subject to considerable volatility, but with growth in the international travel industry and especially the expected growth in visitors from China, demand for high quality resorts and accommodation increases. As should have been evident from the previous Future North Report, projects that did not receive any financing assistance were simply not developed. Tourism investment has not received support from the CEFC/ARENA or NAIF due to mandate limitation and this needs to change.

The construction of significant resorts is highly capital intensive and the Australian capital markets lack depth in their ability to provide long term, fixed rate debt. Also, Australian financial institutions have been traditionally conservative in their lending practices to the tourism sector, as the volatility of income of these resorts can be high and impacted by factors outside the control of borrower.

Weather, travel issues, health scares, international conflict or terrorism can significantly impact visitor numbers and rapidly undermine the economics of resort operators and owners. Development of the tourism sector would significantly benefit from a patient long term capital provider.

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To accelerate investment in tourism the government should consider investing in enabling infrastructure. Given the large distances involved, the lack of time and reluctance to drive for most tourists, priority should be given to building well located airstrip facilities. Such facilities need not be extravagant and can consist of a simple airstrip, but they are critical to regional development. Particular attention should be considered to projects like the Cassowary Coast Regional Airport with an extended airstrip to enable the growth of developments in the Mission Beach area. Historic low, long term interest rates provide an ideal time for government to invest in these facilities, with the upside of securing a full return on any future sale or privatisation.

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Section 5 Project Summary Table

Each column in the following table is a summary of the various diversified project opportunities for north Queensland.

The projects are as follows:

Aquaculture

1. Guthalungra Prawn Farm

Biofuels

2. Pentland Bioenergy Project

Tourism

3. Great Keppel Island Resort 4. Cassowary Coast regional Airport 5. Castaways Resort and Regional

Convention Centre 6. Capricorn integrated Resort Project 7. North Queensland Country Club 8. KUR World Integrated Eco Resort

Water

9. Municipal Wastewater Upgrades/Bioremediation

10. Hughenden Irrigation Scheme 11. 15 Mile Irrigated agricultural

Development Project 12. Big Rocks Weir 13. Hells Gate Dam and Pumped Hydro

Project

Renewable Energy, Storage and Transmission

14. Kidston Renewable Energy Hub 15. Lakeland Wind Farm 16. Kennedy Energy Park 17. Clarke Creek & Haughton Solar Farms 18. Bunkers Hill pumped Hydro 19. Mt Fox Energy Park 20. Lacour Clarke Creek Wind & Solar

Farm 21. Majors Creek 22. Kaban Green Power Hub 23. CopperString 2.0 24. Clean energy Hub 25. Other Solar Projects

Manufacturing

26. Lithium Battery Plant

Mining

27. Olive Downs Coking Coal 28. Winchester South Development 29. Amorphous Silica Project 30. Sconi Cobalt and Nickel Project

Hydrogen

31. Gladstone Green Hydrogen & Ammonia Plant

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1 2 3

Project Name Guthalungra Prawn Farm Pentland Bioenergy Project Great Keppel Island Resort

Industry Sector Aquaculture Biofuels Tourism

Location Guthalungra between Bowen and Townsville Charters Towers Great Keppel Island

Description New 259 Ha Aquaculture facility

http://Pacificreef.com.au/Guthalungra/

PDD provided

200m ML a year fuel grade

Ethanol Plant

PDD Provided

Integrated tourism resort

www.gkiresort.com.au

PDD Provided

Project proponents Pacific Bio/Pacific Reef Fisheries Renewable Developments Australia Pty Ltd Tower Holdings

Project Costs $100M A$ 800M In excess of $1Billion

Funding Sources Corporate and Project Finance Project Finance Private equity and debt finance

Jobs Construction: 130

Operation: 220

Construction: 500 each stage

Operations: 150 each stage

Construction: 260

Operations: Over 1,400 on the island and throughout the region

Other Benefits Net Zero discharge to GBR Application of leading Australia algae bioremediation Replicable and first new prawn farm approved on GBR since 2001, Partnership with James Cook University, North QLD Based

First major ethanol growth and production facility Increase Australian Fuel security Feed stock to blend into petrol to reduce emission in remaining conduction engine fuel stock

Re-establishment of iconic tourist destination

Commencement Dates

Construction: Mid 2020

Operations: Mid 2022

Construction: late 2019

Operations: late 2021

TBC

Current Status Achieved Prescribed Project Status Long term debt and transmission infrastructure

EIS complete

Local and federal govt approvals. Unable to obtain local finance, lease conditions too restrictive, govt reluctant to provide casino licence

Support Requirements

Long term debt and $25M 15 year transmission loan at govt rates + 1%

Support to manage risk of long-term low fuel prices CFD like provided to renewables

Financing, lease terms, casino license

http://pacificreef.com.au/Guthalungra/

http://www.gkiresort.com.au/

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4 5 6

Project Name Cassowary Coast Regional Airport Castaways Resort & Regional Convention Centre Capricorn Integrated Resort Project

Industry Sector Tourism Tourism, Logistics and Infrastructure Tourism and Town Development

Location Mundoo Aerodrome Innisfail Airport Mission Beach Yeppoon

Description Aviation and logistics hub for the Cassowary Coast supporting tourism development and freight for high value agriculture

PDD Provided

Development of tourism and convention facilities at the Castaways Resort on the beach front at Mission Beach

PDD Provided

Resort, golf Couse, 600 rooms of accommodation, airstrip, 8000 dwellings

PDD Provided

Project proponents Innisfail Airport Pty Ltd, Neville Smith Group Neville Smith Group Iwasaki Sangyo Co (Australia)

Project Costs $100M $70M $600M

Funding Sources Project Finance Project Finance Corporate and Project Finance


Operations: 150

Construction: 220

Operations: 170

Construction: +2000

Operations:+1500

Other Benefits Unlocks tourism and high value agriculture and horticultural offerings in the region

Town and region are located in one of the coastline’s untapped natural wonderlands. It is a natural location for investment

Long term employment and growth plan for the region

Commencement Dates

Construction: 2023 Construction: 2022 Construction: 2022

Current Status Still subject to detailed Feasibility Study Shovel ready EIS due to be submitted this year


Ideal candidate for NAIF support. Projects like this need long term fixed rate debt, because the demand for the logistics facility and airport will grow over time as additional facilities are established.

30% patient equity capital is required. Timing needs to match the Innisfail airport redevelopment

50% debt with commercial banks

Rapid consideration and conclusion of EIS Long term debt support would assist with key infrastructure aspects of the development e.g. airport

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7 8 9

Project Name North Queensland Country Club KUR World Integrated Eco Resort Municipal Wastewater Upgrades/Bioremediation

Industry Sector Tourism Tourism Wastewater

Location Townsville Greenvale, Townsville region GBR Reef catchment area

Description http://www.kur-world.com/

Mining, processing and manufacture of silicon fertilisers

https://www.agripower.com.au

PDD Provided

Projects to upgrade waste water treatment and improve water quality

Project proponents Landmark Projects / R H Group Agripower Australia limited Pacific Bio

Project Costs $1000m $663M $136m (Initially 4 plants totalling $18.5M)

Funding Sources Projects Finance and Investor equity Capital raisings and project financing Grants and Councils

Jobs Construction – 300

Operations -1000

Construction: 490

Operations: 470

Construction: 20 per plant

Operations: 4 per plant

Other Benefits Local jobs and facilities Local services and transport New multi-user rail corridor Organic agriculture 200-year mine life Expansion of Port of Townsville

Remove significant damaging reef pollution Removes 372m t/year of nitrogen (initial 4 plants – 20m t/year) Removes 106t/year of phosphorus (initial 4 plants – 6m t/year)

Commencement Dates 2024 Construction: June 2021

Operations: Dec 2022

Construction is progressive

Operations are progressive

Current Status progressing Environmental approval

Prescribed project status by Qld Premier

Negotiating with Councils and QLD Water

Support Requirements Accelerated approvals and long term debt LT debt support Opex &/or capex support under a Build/Own/Operate model, e.g. contribution from the State govt or GBRM Authority to Councils to help maintain the water treatment facilities

http://www.kur-world.com/

https://www.agripower.com.au/

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10 11 12

Project Name Hughenden Irrigation Scheme 15 Mile Irrigated Agricultural Development Project

Big Rocks Weir

Industry Sector Water Resources Infrastructure for irrigation Water Water Resource Agriculture

Location Upper catchment of Flinders River, 15 kms north of Hughenden

12 km NNW of Hughenden Charters Towers

Description 400,000 megalitre dam and 50 MW hydroelectricity project for Hughenden Establishment of new 15,000 ha irrigation region that would open high value agricultural sector opportunities

Irrigated agricultural development project, initially for 60 hectares of table grapes and 60 hectares of citrus crops

Construction of a weir on Burdekin River and opening of 5000H of irrigated lands adjacent to the weir 10,000ML capacity

Project proponents Hughenden Irrigation Project Corporation Flinders Shire Council Charters Towers Regional Council

Project Costs $180M $47M $30M

Funding Sources CEFC to support TBC Grant Funded

Jobs Subject to review Construction: 5

Operations: 2 plus 70 seasonal

Construction: 50

Opens significant agricultural opportunities

Other Benefits Crop irrigation, power and flood mitigation

The project would be overseen by the new North Queensland Infrastructure Authority.

A major irrigated agricultural development project. Opens up 344 ha for high value horticulture, 101 ha for farming infrastructure and lower value crops, and 447 ha for environmental protection.

The project will secure water supplies for the Town of Charters Towers and significantly expand Agricultural activities in the region

Commencement Dates Construction: 2019 Completion: 2020

Current Status Funding pledge of $180M from Prime Minister

Declared a Coordinated Project

Draft IAR being prepared

Support Requirements Integral with Copperstring CEFC financing

TBC

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13 14 15

Project Name Hells Gate Dam & Pumped Hydro Project Kidston Renewable Energy Hub Lakeland Wind Farm

Industry Sector Irrigated Agriculture and Power Project Renewable Energy – Solar, Pumped Storage and Wind

Renewable Energy, Wind

Location Upper Burdekin 120 Km North west of Townsville

Kidston Lakeland, Cook Shire

Description 2,100GL Dam, 1,200 MW Pumped Hydro and opening of significant Irrigation potential

https://www.townsvilleenterprise.com.au/key-projects/agriculture/advocacy-tel/

PDD Provided

Stage 1: KS1 Solar 50MW solar PV constructed 2017 Stage 2: K2- Hydro 250MW pumped hydro storage, paired with K2-Solar 165MW solar project Stage 3: K3 – Wind up to 150MW

PDD Provided

Wind generation 100 MW

PDD Provided

Project proponents North QLD Water Infrastructure Authority Genex Power Windlab

Project Costs $5 billion K2-Hydro approx. $500M; K2-Solar approx. $250M

K3-Wind approx. $350M

$220M

Funding Sources Govt supported National project K2-Hydro NAIF debt, ARENA grant, Equity 50:50 with EnergyAustralia

Jobs Construction: 12,000 staged

Operation: 4,000

Construction of K2-Hydro and K2-Solar: 800 (incl. transmission line)

Operation: 44 in total

Construction: 120

Operation: 5

Other Benefits Significant regional development project. Market benefits of scheduled dispatchable power on demand. Can suppress peak demand pricing by dispatching 2000MWh over an 8-hour period.

Clean energy; Uncorrelated wind resource reducing requirement for storage; Manufacturing & export opportunities from low- cost energy



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13 14 15

Grid strength and network stability through synchronous generation, enabling further renewable projects. Solar paired with pumped hydro cuts pollution equiv. to taking 33,00 cars off the road, dispatchable clean power when needed to 280,000 homes World first project utilising disused gold mine for energy storage First pumped hydro project in Aust in 30 year. First private sector funded – will unlock other PSH projects around Aust.

Commencement Dates 24 million feasibility study overseen by NQWIA Construction: K2-Hydro 2019, K2-Solar 2020 and K3-Wind 2020/21

Operations: K2-Hydro, K2-Solar and K3-Wind all 2022

Construction: Feb 2020

Operations: June 2021

Current Status Subject to NQWIA Strong support from Etheridge Shire Council Declared State Govt Project Critical Infrastructure and Coordinated Project All environmental permits are in place Offtake agreement with EA

Network capacity and stability issues

Support Requirements Detailed feasibility study funded Awaiting confirmation from QLD government re co-funding of transmission line connection

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16 17 18

Project Name Kennedy Energy Park Clarke Creek & Haughton Solar Farms Bunkers Hill Pumped Hydro

Industry Sector Renewable Energy, Wind & Solar Renewable Energy & Transmission Infrastructure Renewable Energy & Transmission Infrastructure

Location Flinders Shire, 240 kms SW of Townsville Clarke Creek - between Mackay and Rockhampton Upper Haughton (Stage 1 100MWac in final stage of construction)

Northern Queensland

Description Wind and solar generation of over 1GW when fully developed.

PDD Provided

315 MWac of solar generation, enough to power 196,000 homes. PDDs provided Haughton - 500 MW enough to power 291,000 homes

Up to 300 MW of storage capacity

Project proponents Windlab Pacific Hydro Pacific Hydro

Project Costs Over $1 Billion TBA $600M - $800M

Funding Sources Private equity and project finance Private equity and project finance

Jobs Construction: Stage 1: 250 + Stage 2: 250

Operations: 25 + 10

Construction: 240 + 240

Operation: 6 + 10

Other Benefits Clean energy, uncorrelated wind resource reducing requirement for storage; Manufacturing & export opportunities from low cost energy

Direct community investment of over $2.5M over life of solar farm Local supply chain benefits

Storage can provide system support

Commencement Dates Construction: Apr 2022 + Apr 2024

Operations: Oct 2024 + Oct 2026

TBA TBA

Current Status Long distance to grid connection Network capacity and stability issues

Impeded by new law requiring qualified electricians to do manual labour System strength/MLF uncertainty

Grid connection & system strength are issues faced by all project proponents Lack of guaranteed revenue streams

Support Requirements Clean Energy Hub/North Qld Link. Transmission augmentation, Copperstring, synchronous condensers

Govt underwritten long-term offtake agreement Whole-of-state investment in infrastructure to strengthen system (vs synchronised condensers)

Grant funding, govt loans Streamlining of processes e.g. through a ‘State Significance’ scheme Additional market mechanisms for additional ancillary services revenue e.g. for system support

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19 20 21

Project Name Mt Fox Energy Park Lacour Clarke Creek Wind & Solar Farm Majors Creek

Industry Sector Renewable Energy & Transmission Infrastructure

Renewable Energy & Transmission Infrastructure Renewable energy

Location 10 KM NW of Townsville, near Ingham 150 KM NW of Rockhampton and 150 KM south of Mackay in Isaac Shire and Livingstone Shire areas.

Woodstock QLD

Description Staged wind & solar hybrid project up to 460 MW

PDD provided

800 MW of wind, enough to power around 590,000 homes and 4% of state’s electricity 400 MW of solar Utility scale battery PDD Provided

www.edifyenergy.com

Project proponents Zephyr Energy Developments Pty Ltd Lacour & Goldwind Australia Edify Energy

Project Costs TBC $1 billion $450m

Funding Sources Equity and project finance debt Equity and project finance debt Project finance and investor equity


Operations: 10-15 ongoing

Construction: 350

Operations: 20

Construction: 500

Operation: 10

Other Benefits Access to advanced weather profiling for local industry, local coal and infra. upgrades

Complimentary generation with wind at night and solar during day

Located in Lansdown Industrial Precinct providing behind the meter power solutions to tenants

Commencement Dates Construction: 2021

Operations: 2022

Construction: 2019 Construction – Q4 2019

Operation – Q1 2010

Current Status Aiming for DA submission Nov 2019 Environmental approval Advanced

Support Requirements None at this stage None. Grid infrastructure and MLFs

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22 23 24

Project Name Kaban Green Power Hub CopperString 2.0 Clean Energy Hub

Industry Sector Renewable Energy - Wind and Battery Renewable Energy & Transmission Infrastructure Renewable Energy & Transmission Infrastructure

Location Ravenshoe Transmission Infrastructure Between Townsville and Cairns

Description https://kabangreenpowerhub.com.au/

Project proponents Neoen Autralia 1,100 km of transmission Infrastructure from Townsville to Mt Isa

http://eisdocs.dsdip.qld.gov.au/CopperString/2019/IAS/copperstring-initial-advice-statement-2019.pdf

PDD Provided

Powerlink on behalf of Queensland government

Project Costs $300m CuString Pty Ltd, an SPV controlled by parent entity VisIR Pty Ltd

TBC

Funding Sources Projects Finance and Investor equity $1 billion TBC

Jobs Construction: 150, Operations: 50 Infrastructure equity and project finance debt Would enable up to 4,600 jobs

Other Benefits Local jobs and community Fund Construction: 400

Operations: 40

Allows additional 2000 MW of renewable energy to be augmented to the grid

Commencement Dates

Not disclosed Reliability of supply, competition in electricity supply for industry, mining & domestic use. Allowing renewable energy on to the NEM, incl Kennedy wind project.

Significant economic stimulus in flow investment

TBC

Current Status Advanced Construction: 2020; Operations: 2022 EoI to inform development options; Current status is highly unclear; Current MLF issue complicating matters


Grid infrastructure and MLFs EIS to be completed; Regional Reference Group established

A solution is needed to allow export of power south towards Gladstone

https://kabangreenpowerhub.com.au/




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25 26

Project Name Other Solar Projects Lithium Battery Plant

Industry Sector Renewable Energy & Transmission Infrastructure Manufacturing

Location Various locations. Projects over 100 MW Townsville

Description 1. Esco Pacific – Rolling Stones 110 MW 2. Esco Pacific – Moura Solar Farm 110 MW 3. FRV – Bluewater 102 MW 4. Edify – Majors Creek 400 MW 5. Clean Gen – Burdekin Solar 140 MW 6. Equis – Collinsville North 100 MW 7. Eco Energy World – Broadlea Solar 100 MW 8. Eco Energy World – Bouldercombe Solar Farm 200 MW 9. Eco energy World – Raglan Solar Farm 350 MW 10. Adani Solar - Rugby Run Stage 2 - 105 MW 11. Tilt Renewables – Dysart Solar 100 MW 12. Hanwha – Dysart Solar 130 MW 13. Renewable Energy Developments – Gregory Solar 215 MW 14. Renewable Energy Developments – Blackwater 150 MW 15. Infigen – Bluff Solar 100 MW 16. Wirsol – Rodds Bay Solar 250 MW 17. Acciona – Aldoga Solar Farm 265MW 18. Hadstone Energy – Comet Solar Farm 235 MW

www.iM3.com.au

https://www.townsvilleenterprise.com.au/key-projects/lithium-ion-battery-plant/

PDD Provided

Project proponents Boston Energy and Innovation, Magnis Technologies and Charge C4V Boston Energy and Innovation, Magnis Technologies and Charge C4V

Project Costs Three stages @ $700m each stage Three stages @ $700m each stage

Funding Sources Project Finance and investor equity Project Finance and investor equity

Jobs Construction – 500 each stage; Operation- 350 per stage Construction – 500 each stage; Operation- 350 per stage

Other Benefits High tech manufacturing in Townsville region High tech manufacturing in Townsville region

Commencement Dates 2020 2020

Current Status Seeking to finalise business case; The project needs investment grade offtakes for the batteries

Seeking to finalise business case; The project needs investment grade offtakes for the batteries

Support Requirements The QLD govt could provide offtake support The QLD govt could provide offtake support

http://www.im3.com.au/



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27 28 29

Project Name Olive Downs Coking Coal Winchester South Development Amorphous Silica Project

Industry Sector Mining, Processing & Manufacturing Mining, Processing & Manufacturing Mining, Processing & Manufacturing

Location 40Km south east of Moranba The Winchester South Project is located 30km south-east of Moranbah in QLD’s Bowen Basin

Greenvale, Townsville region

Description www.pembrokeresources.com.au

PDD Provided

http://www.whitehavencoal.com.au/operations-3/winchester-south-project

PDD Provided

Mining, processing and manufacture of silicon fertilisers https://www.agripower.com.au

PDD Provided

Project proponents Pembroke Resources Whitehaven Coal Agripower Australia limited

Project Costs Stage 1 $450m Approximately $1 billion in capital expenditure inclusive of the mining fleet, to bring the project into production by FY24

$663M

Funding Sources Project finance and investor equity Project Finance and corporate facility Capital raisings and project financing

Jobs Construction – 500-700

Operation -1000

Construction- 500

Operation - 450

Construction: 490

Operations: 470

Other Benefits Located in coal community region Boost local communities in coal community region and provide State Royalty revenue

Local services and transport, new multi-user rail corridor Organic agriculture, 200-year mine life, expansion of Port of Townsville

Commencement Dates 2020 Construction: June 2021

Operations: Dec 2022

Current Status Advanced Environmental approval, Prescribed project status by Qld Premier

Support Requirements Issue of mining lease LT debt support

http://www.pembrokeresources.com.au/

http://www.whitehavencoal.com.au/operations-3/winchester-south-project/



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30 31

Project Name Sconi Cobalt and Nickel Project Gladstone Green Hydrogen & Ammonia Plant

Industry Sector Minerals Hydrogen & Ammonia

Location Greenvale Gladstone

Description http://eisdocs.dsdip.qld.gov.au/North Queensland Country Club Resort and Equestrian Centre/Initial Advice Statement/north-queensland-country-club-resort-and-equestrian-centre-initial-advice-statement.pdf

Currently Australia is major importer of Ammonia. Ammonia produced in Australia from renewable energy is possible and price competitive with imported ammonia.

Project proponents Australian Mines Limites H2U

Project Costs $1000m Approx. $500m

Funding Sources Project finance and investor equity Project Finance

Jobs Construction – 500-

Operation -300

Construction: 300 and Operations: 30

Other Benefits Regional jobs and infrastructure near Greenvale New technology application

Significant benefits to grid stability

Replaces a high carbon emitting process with a zero emissions operation.

Commencement Dates 2022

Current Status Early stage project. Aust is uniquely placed to apply this technology due to its low variable power prices and high gas prices


The technology is not a new application, but it has not occurred at this scale in Aust. Support will be required from ARENA, CEFC and NAIF pls QLD govt

http://eisdocs.dsdip.qld.gov.au/North%20Queensland%20Country%20Club%20Resort%20and%20Equestrian%20Centre/Initial%20Advice%20Statement/north-queensland-country-club-resort-and-equestrian-centre-initial-advice-statement.pdf





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5.1 Project Map Overview

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Section 6 Detailed Project Descriptions The Detailed Project Descriptions are outlined as follows:

Aquaculture 1. Guthalungra Prawn Farm

Biofuels

1. Pentland Bioenergy Project

Tourism 1. Great Keppel Island Resort 2. Cassowary Regional Airport 3. Castaway Resort & Regional Convention Centre 4. Capricorn Resort Project 5. North Queensland Country Club 6. KUR World Integrated Eco Resort

Water

1. Municipal Wastewater Upgrades 2. Hells Gate Dam Project

Renewable Energy

1. Kidston Renewable Energy Hub 2. Lakeland Wind Farm 3. Kennedy Energy Park Stages 1 & 2 4. Clarke Creek Solar Farm 5. Haughton Solar Farm 6. Bunkers Hill Pumped Hydro (No PDD) 7. Mt Fox Energy Park 8. Lacour Clarke Creek Wind & Solar Farm 9. Majors Creek 10. Kabban Green Power Hub

Transmission Infrastructure

1. CopperString 2. Clean Energy Hub

Manufacturing

1. Lithium Battery Plant Mining, Processing and Manufacturing

1. Olive Downs Coking Coal 2. Winchester South Development 3. Amorphous Silica Project 4. Sconi Cobalt and Nickel Project

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6.1 Aquaculture Projects

6.1.1 Detailed Project Description: Guthalungra Prawn Farm

Description and location:

The Guthalungra Prawn Farm is the first GBRMPA approved aquaculture project since 2001 in north Queensland. It will be a 259-hectare greenfield site and has been made possible by using algal bioremediation to take out nutrients from discharge water.

This project will deliver around 130 jobs during the construction phase and will create 220 new jobs when it is operating in regional North Queensland. Algal bioremediation will be used to achieve net-zero discharge of nutrients onto the Great Barrier Reef.

Project website:

www.pacificbio.com.au

www.pacificreef.com.au

Project proponents:

Pacific Biotechnologies Ltd (Pacific Bio) is an Australian aquaculture and biotech company that is setting a new standard in sustainable aquaculture, wastewater management and plant nutrition.

http://www.pacificbio.com.au/

http://www.pacificreef.com.au/

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Incorporated in 2006, Pacific Bio is an Australian unlisted company with over 200 shareholders and over 150 employees. It has worked closely with James Cook University in Townsville to develop proprietary know-how in harnessing nature to clean water and grow sustainable sources of nutrition for plants, animals and humans.

The purpose of the company is to help address two of the world’s most challenging issues – water purity and food security.

Head office is based in Melbourne, with the bulk of operations and workforce in north Queensland, bordered by the Great Barrier Reef where production and farming facilities and the R&D team are based.

Pacific Bio operates four key business units that offer the following products and services:

• Aquaculture (Pacific Reef Fisheries) – sustainably farming premium black tiger prawns and cobia (black kingfish) with plans to expand.

• Bioremediation (RegenAqua TM) – using native, edible green algae to naturally clean nutrient-rich water from municipal water treatment plants and aquaculture facilities to protect the environment, especially the Great Barrier Reef.

• Plant Nutrition (Plant Juice TM) – concentrated natural plant biostimulants, extracted from algae produced through bioremediation, stimulate root, shoot and fruit development leading to reduced fertilizer requirements, improved soil health, and more sustainable agriculture.

• Human Nutrition (ReefAsta TM) – using freshwater microalgae to produce, extract and encapsulate astaxanthin, a distinct antioxidant with compelling human health benefits.

Environmental credentials:

Pacific Bio is setting a new standard in sustainable aquaculture, wastewater management and plant nutrition.

The Ayr aquaculture facility was the first prawn farm in Australia to gain certification from the Aquaculture Stewardship Council (ASC) – an organisation which certifies environmentally and socially responsible seafood.


https://www.pacificbio.com.au/bioremediation-services/

https://www.pacificbio.com.au/plant-nutrition/

https://www.pacificbio.com.au/human-nutrition/

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What makes this aquaculture facility truly unique is how wastewater is managed. Pacific Bio’s world leading algae bioremediation technology known as RegenAquaTM provides for tertiary treatment of wastewater removing nitrogen and phosphorus levels to below the internal standards of 5 mg/l and 1mg/l.

Efficacy of its technology has been proven in multiple locations including aquaculture facilities and municipal wastewater treatment plants throughout their partnership with James Cook University. Pacific Bio’s bioremediation technology has been accepted by the Great Barrier Marine Park Authority in 2016 when they provided the first permit for a new aquaculture facility in Queensland since 2001.

Estimated project costs:

The total Estimated project costs: of $112 million in capex (excluding financing payments) for the three grow out stages, hatchery and domestication facility plus around $17 million of equipment.

Expected sources of funding:

The project will be funded by way of a loan facility and corporate equity.

Likely jobs during construction:

Bio Pacific estimate that construction jobs will peak at 110.

Likely jobs during operation:

Bio Pacific estimate that operations jobs will peak at 220.

Other ancillary benefits to the community: There is huge potential for the growth of the aquaculture industry in Queensland, however this growth has been constrained due to regulatory restrictions, management of wastewater and potential disease. Pacific Bio has been at the industry forefront in developing a business model that addresses all of these issues. The Guthlungra project is a flagship development project that will demonstrate this commercial potential to the wider investment community. There is potential to open up the export market, particularly into Asia. In addition, the algal biomass that is produced through the bioremediation process can be value-added and created into a bio stimulant product. This has significant market potential across agriculture and horticulture in northern Queensland, enabling further job creation. The Guthalungra aquaculture project is also integral to the development and commercialisation of Pacific Bio’s innovative algal-based technologies in other areas, particularly bioremediation of wastewater and production of valuable algae-based products for agriculture. Target date for financial close:

December 2019

Target date for commencement of construction:

January 2020

Likely commercial operations date:

1 September 2021

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Factors that are holding the project back from progressing:

The project is being held back by excessive cost of securing power connection to the grid. The project’s connection costs are almost 25% of the overall project construction cost.

The project would benefit from a long-term loan to fund this cost. This would be a very well secured loan as having power at night when the facilities need significant aeration is a strategic asset of the operation and therefore unlikely to contain significant long-term credit risk once the facility is constructed.

Current local and federal government support:

Pacific Bio has approached both the NAIF and the CEFC to assist with financing support.

Additional government support that could help bring the project to fruition:

This project opens the door to a significant growth potential along the north Queensland coast. It is being held back due to high power access costs.

The State Government should either instruct ERGON to provide the transmission and recover the transmission cost over time like any other transmission assets or consider providing the facility as long-term loan so that the costs of this transmission can be repaid over an extended period of time.

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6.2 Biofuels Projects

6.2.1. Detailed Project Description: Pentland Bioenergy Project

Description and location of project:

Renewable Developments Australia Pty Ltd (“RDA”) is planning to develop a fully integrated biofuel facility using sugarcane as a primary feedstock near the township of Charters Towers in North Queensland, Australia (the “Project”). The Project Stage 1A will incorporate an integrated sugarcane growing and processing facility to deliver approximately 100 million litres (“ML”) per annum of fuel grade ethanol to the international market via a long-term offtake arrangement with a global distribution company.

The Project Stage 1B is also approved and ready for construction and will follow on the completion of Stage 1A with a further 100 million litres per annum of fuel grade ethanol production.

The Project is considered shovel ready with full environmental and planning approvals at Federal, State and local approved.

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Project website:

Detailed project data is available but remains confidential. Parties interested in further information should contact the project proponents.

Project proponents:

Renewable Developments Australia Pty Ltd (“RDA”) RDA has selected Tomsa Destil as their delivery joint venture partner for the EPC contract, to deliver the sugar processing, cogeneration and ethanol production plants and farm infrastructure. The EPC contract with RDA & Tomsa Destil will specify fixed time, fixed price with associated damages for failure to perform.


The project will produce Renewable Fuel Grade Ethanol from sugar cane and generate the project’s base load power requirements from renewable biomass source of excess bagasse. Emissions from fuel standard ethanol is carbon neutral.


The total estimated project cost for both Stage 1A & 1B producing 200 million litres of ethanol per annum is US$520 million.


The Project will be funded by government supported debt funding of US$350 million from North Australian Infrastructure Facility (NAIF), Clean Energy Finance Corporation (CEFC) and FIEM (a Spanish Government Internationalisation fund supported via the Tomsa Destil Processing Facility construction contract).

There are five Australian and international funding partners presently carrying out due diligence for the injection of the equity funds of US$170 million.

Market certainty for sale of bioethanol into the 120 billion litre international market through short term (10 year) government guarantees would expedite financial close of the Project allowing construction of the Project to start in Q4 2019.

Funding Source Total Costs 1A & 1B Costs 1A Costs 1B

Total Costs US$520 M US$320 M US$200 M

Debt: CEFC, NAIF, FIEM US$350 M US$215 M US$135 M

Equity (5 Participants) US$170 M US$105 M US$65 M


RDA estimate that construction jobs will peak at 500 for each stage.


RDA estimate that operations jobs will peak at 150 for each stage.

Other ancillary benefits to the community:

RDA commissioned PWC to complete a Cost Benefit Analysis and a Public Benefit Analysis for the Project and these were the key findings:

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Economic analysis finds the Project is economically viable over a range of conditions:

Economic analysis is based on comparison of a Project Case versus a Base Case. The Project Case is defined as implementation of the Project and the Base Case is defined as continuation of the status quo. The key findings from this analysis are:

The project generates a positive BCR and is economically viable. The project has a BCR value of 1.3 which means that it is economically viable.

The project generates a positive Net Present Value (NPV). The project has an NPV of $549 million which supports the assessment of project economic viability.

The project remains economically viable under a range of potential conditions. The project is economically viable under all scenarios considered with exception of two highly pessimistic cases. Consideration of these scenarios generates BCR values ranging from 0.8 to 2.3.

The project has a strong economic return using a conservative approach. PWC has deliberately taken a conservative approach to all input estimates including incorporating costs for two alternate water sources and excluding employment benefits and the impact of greenhouse gas emissions from oil production. Even with this conservative approach the Project is forecast to have a total economic return of $549 million.

The tax payable to the Government by the project which equates to $133 million in discounted terms over the life of the Project

Reduction in greenhouse gases from both conversion to ethanol from petrol, and from bagasse fired electricity generation replacing equivalent coal fired generation, equating to $123 million in discounted benefit over the life of the project.

Increased land use revenue for local landholders which represents the lease payments from the proponent to the landholders to enable the Proponent to grow the feedstock on this land.

Target date for financial close:

The financial close date is targeted to be second half 2019.


The Target date for commencement of construction is expected to start one month after financial close.


The Likely commercial operations date is expected to be second half of 2021.


There are no fundamental flaws or concerns with the Project economics, Project technology and process, environmental benefits and economic benefits to Queensland. The uniquely integrated Project will be a world first that will deliver fuel grade ethanol in the lowest cost quartile globally, whilst supporting the developing future environmental focus of low carbon lifecycle renewable products.

The Project has no barriers to support, except for securing Equity participation which is seeking great assurance over the long-term sales arrangement for the ethanol.

The Project is struggling to source equity partners who are prepared to take a commodity market risk approach to ethanol prices. All potential investors are seeking secure minimum returns

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supported from the offtake floor price for ethanol. Australia have not had stable policy arrangements supporting biofuels and therefore investors face higher uncertainty.

Market certainty for sale of bioethanol into the 120 billion litre international market through short term (10 year) government support arrangement like a Contract for Difference floor as used in the renewable energy sector would expedite financial close of the Project allowing construction of the Project to start in Q4 2019.

The offtake agreement provides a floor price that supports all Operations and Maintenance costs, all interest repayments and 50% of amortisation payments, but does not support a return for equity, during prolonged periods at floor price. However, the Project’s market study report by Argus Marketing provides a 15-year forecast of ethanol prices considerably higher than the floor price, that support equity returns well above equity mandated returns.


In May of 2015 ARENA approved an AU$3 million grant (to be repaid at financial close), to assist RDA with the some of the development costs against a total expenditure budget of AU$ 14 million.

In October 2017 the Queensland government under its BIDF support Team approved funds of AU$2.1 million (to be repaid at financial close), against a budget of AU$4.2Million to assist RDA with costs associated with financially closing the project.

Clean Energy Finance Corporation and the Northern Australia Infrastructure Facility, both Australian Federal government owned corporations and FIEM a Spanish Government owned Corporation have agreed to support the project with the entire debt funding for the project.

Funding Source Total Costs 1A & 1B Costs 1A Costs 1B

Total Costs US$520 M US$320 M US$200 M

Debt: CEFC, NAIF, FIEM US$350 M US$215 M US$135 M

Equity (5 Participants) US$170 M US$105 M US$65 M


There are five Australian and international funding partners presently carrying out preliminary due diligence for the injection of the equity funds of US$105 million for Stage 1A or US$170 million for both Stage 1A & 1B. These prospective equity investors are looking for supported downside equity returns available to other renewable energy projects such as wind and solar projects often achieved via a CfD structure.

Being a renewable, green field project, the first of its kind in Australia and globally requires a high level of lateral thinking to structure the project finance and support to achieve required outcomes of all parties.

Government support to expedite the project could include:

• Market certainty for sale of bioethanol into the 120 billion litre international market through short term (10 year) government support arrangement would expedite financial close of the Project allowing construction of the Project to start in Q4 2019.

• Floor Price gap support arrangement to provide downside market returns in times of low market conditions for a fixed period.

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• Australian government lenders support of long-term concessional loans with options of amortisation deferment in low market conditions to help manage price risk.

• Government taking an equity position (100% or partial) with a planned exit strategy after construction. E.g. IPO / sale.

• As is evident most of these arrangements are targeted to reduce the risk that the floor price of ethanol falls below a threshold for an extended period of time. In the market where reducing emission was a priority this should not happen but given the uncertainty in Australia government policy toward climate action investors seek additional support if they are to invest targeting a reasonable equity return.

To date the project has received financial support from both the Federal and State Governments.

Effectively, if governments want to help move the Project from this advanced stage to financial close, RDA requires lateral thinking decision makers to work on a solution that satisfies all parties’ objectives to manage an unlikely downside price risk.

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6.3 Tourism Projects

6.3.1 Detailed Project Description: Great Keppel Island Resort


Integrated tourism resort located on Great Keppel Island that looks advanced. The Great Keppel Island Resort (GKI Resort) seeks to deliver the world’s premier eco-luxury resort and villa development within the Great Barrier Reef World Heritage Area.

The plan includes a new 250 room beachfront hotel, 700 luxury villas, 300 luxury apartments, a 250-berth marina, premium retail village, day spa, Greg Norman designed championship golf course, commercial airstrip, research centre and a 575-hectare environmental protection precinct.

The project has also been designed to be a world leader in global environmental tourism. The cornerstone of this objective is to deliver a ‘carbon positive’ resort which will produce more clean renewable energy than it consumes each year through the use of solar power and the installation of over 24,000 solar panels.

The new GKI Resort aims to be an integral part of the regional community, a facility that will provide guests with fun, excitement and entertainment on a level currently unrivalled in Australia.

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Project website:

www.gkiresort.com.au

Project proponents:

Tower Holdings


As outlined in the Great Barrier Reef Outlook Report 2009, climate change is one of the most serious issues affecting the long-term survival of the Great Barrier Reef. The cornerstone of the GKI Resort will be a significant commitment to the use of renewable energy by embracing one of Australia’s most significant natural resources – its abundant sunshine.

The Plan sets an ambitious target in its sustainability initiatives which will provide a model for future tourism projects to begin to address the issue of climate change.

ARUP Engineers (a world leading firm of sustainability engineers) has concluded that the GKI Resort can achieve its target of being Australia’s first carbon positive island resort through the installation of over 24,000 solar panels on the rooftops of the tourism accommodation.

In total the solar panels will generate over 12,400 megawatt hours of clean renewable energy each year.

The Resort will therefore generate more green power than it can use, allowing additional energy to be fed back to the mainland through a submarine cable. Through this activity, additional green energy will be fed back into the grid for the benefit of all Central Queensland residents.

The Great Keppel Island (GKI) Revitalisation Plan states that it will apply the highest level of environmental scrutiny to ensure that:

• The quality of the Southern Great Barrier Reef improves over the life of the Resort; • Improved research facilities are made available in the Southern Great Barrier Reef; • The World Heritage Values of the Great Barrier Reef are actively protected and enhanced; • The community of Central Queensland have improved access to the Island; and • Any environmental impacts are either mitigated or offset through commitments to

environmental sustainability.

The GKI Revitalisation Plan’s team of expert environmental scientists and advisors will work with the community and leading researchers to ensure the Plan for Great Keppel Island is not only an inspiration to other island resorts but to every guest, supplier and resident to ensure the long-term sustainability of the Great Barrier Reef, its islands and its communities.

The cornerstone of the GKI Revitalisation Plan is a significant commitment to the use of renewable energy by embracing one of Australia’s most significant natural resources – its abundant sunshine.

Key initiatives of the GKI Revitalisation Plan seeks to ensure that the Great Barrier Reef World Heritage Values are protected and enhanced. These include:

• A reduction of the original project scale by approximately 75% (reduced by 50%, twice); • A sustainability strategy to create Australia’s first carbon-positive island; • The establishment of a GKI Research Centre and a Biodiversity Conservation Fund; • A reduced development footprint and limiting the building footprint to < 3% of the island; • The reduction of the marina by approximately 55%;

http://www.gkiresort.com.au/

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• A significant setback from Leeke’s Beach wetland and sensitive environments to ensure no adverse runoff enters the wetlands or the surrounding marine park waters;

• The establishment of 575 hectares of Environmental Protection Areas over Lot 21 (equivalent to 66% of Lot 21) for environmental protection and biodiversity conservation;

• Significant reduction in scale by adopting an environmental constraints-based approach to site planning; and

• Provision of buffer zones to ensure protection of habitats and to provide fauna corridors.

A full sustainability statement report is available.

Estimated project cost:

The estimated project cost is in excess of $1 billion.


Private equity and debt finance.


260 construction jobs each year.


over 1,400 new jobs on the island and throughout the region.


It is forecast to have the following positive impacts for the region:

• An estimated final development cost of $592.5 million. • Creation of an average of 263 construction–related jobs each year during the 12–year

construction period, with total full-time equivalent jobs generated representing 3,160 person years of employment.

• Through flow–on or multiplier effects, the creation of around 164 additional full–time equivalent construction jobs on the mainland, predominantly at Rockhampton and Yeppoon.

• Around 1,055 full time, part time and casual jobs generated in the Capricorn Region once Great Keppel Island is fully operational.

• Once fully operational, an estimated base of 685 persons employed on the Island in full time, part time and casual jobs, equivalent to 485 fulltime employees. There will be an additional workforce in periods of high demand.

• An average of around 2,274 visitors, staff and residents on the Island each day, totalling around 830,000 person days per year. This is comparable to the peak daily visitation of the Island in the early 1990s.

• Forecast annual expenditure of $83 million per annum on Great Keppel Island by its visitors and employees.

• A substantial increase in total visitor days in the Capricorn Region. • Provision of a significant number of local business opportunities in the Capricorn region. • Diversification of the Capricorn Regional economy through promotion of the regional

tourism industry, making the region less reliant on the commodity price–driven mining and agricultural industries.

• Privately funded infrastructure development provided at no cost to Government. • Significant increases in local and state government revenue through rates, headworks

charges, property transaction duties, land tax and payroll tax. • Forecast economic impact on the Gross Regional Product of the Fitzroy region of $458

million from construction, and around $75 million per year when fully operational.

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A full economic report is available.


Inability to obtain local finance, restrictive leasehold conditions, significant infrastructure spend, government reluctance to provide casino license.


All approved.


Project finance, improved lease conditions and granting of casino license.

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6.3.2 Detailed Project Description: Cassowary Coast Regional Airport

Description and location: The vision for the Airport and the Logistics Hub is a runway extension and development of Mundoo Aerodrome to become the Cassowary Coast Regional Airport and Logistic Hub.

The project seeks to develop the Airport, into a world class logistics hub, to serve as the gateway to the Cassowary Coast Region.

The aim of the projects is to establish the airport by 2025, as:

• A fully functioning aviation and logistics hub for the Cassowary Coast, supporting interconnectivity of air, rail, road and sea freight;

• Operating RPT services and providing for the ability to accommodate aircraft up to a B737- 800/A320 (Code 4C);

• Facilitating direct air connections to/from the Australian east coast capital cities; • A valuable port of entry to the Ultratropics (Cassowary Coast) where natural tourism assets

and developed tourism product is exceptional; • Expediting high priority and air freight direct to market opportunities and leveraging off

other transport nodes in the regional network; • Providing the local community with a more efficient means of air travel and stimulating the

local economy with increased job availability; • The centre of the regions infrastructure network to stimulate regional investment and

regional growth; and Preparing for direct air connections from Asia, to provide fast freight access, supporting the overseas demand for Australian agriculture and produce.

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High level site development strategy:

The proposed site development strategy has been developed through a Master Plan approach. The Master Plan is available and provides an overview of the vision for the layout of the Airport Site to support RPT, GA and logistics services and operations.

The Master Plan Drawing allows for a future airport boundary which will only be possible via additional land acquisition. A future runway length of 2200m x 45m width which will accommodate the workhorse of the Australian domestic aviation industry, the Boeing 737. The 737’s maximum range would allow operations to serve Australia’s East and West Coasts, New Zealand and significant portions of South-East Asia, including key business and freight hubs such as, Singapore, Jakarta and Manila.

Supporting 737/A320 operations would create regional flexibility, enhancing Northern Australia’s capabilities for freight distribution, logistics, maintenance and could offer a significant cost-down opportunity for companies who find the cost of capital city airports and existing secondary hubs prohibitive.

Project website: N/A

Project proponents: Innisfail Airport Pty Ltd (100% The Neville-Smith Group): The Neville Smith Group (NSG), was established in 1924 by Francis Neville Smith. Neville, as he was referred to, was a trader and developed a business trading building material from Tasmania to Victoria.

The business was highly successful despite the troubled economy of the time. The business focused on hardwood timber initially supplying cross arms for the State Electricity Commission, then broadening into a range of structural and eventually highly decorative flooring, furniture and joinery timbers.

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Close to one hundred years later the business is still operating under the stewardship of James Neville-Smith, Neville’s grandson. Neville’s son Richard is still involved in the business after taking over the business at an early age, after Neville died in 1974.

The NSG has a property division which is active in bespoke property development in Victoria, Tasmania and QLD. In QLD, the NSG owns and operates Castaways Resort & Spa and has plans to develop this beachfront land in to a 5-Star Resort and Convention Centre. The group is prominent in the region between Townsville and Cairns, with several tourism-based operating businesses supporting its core resort asset.

The NSG is based in South Melbourne, James Neville-Smith is the CEO and executive Director of the family group and plays an active role in the strategic development of all the non-passive investments. James reports to a mixed board of family members and independent board members. The chairman of the board is Gerard Belleville who is a senior partner at Deloitte.

Note: Innisfail Airport Pty Ltd (Neville-Smith Group) presented the opportunity to the NAIF & council on various occasions separately and together, resulting in local council (Cassowary Coast Regional Council) putting out an EOI seeking a lead proponent from the private sector to drive the development. INNISFAIL AIRPORT PTY LTD have been appointed as the preferred proponent and are seeking State Government support for a feasibility study which would then enable long-term lease arrangements between local council and INNISFAIL AIRPORT PTY LTD.


N/A


$70 - $100 Million.

Expected sources of funding: A combination of federal government, state government, local government, NAIF and private sector.


Analysis hasn’t yet been completed – waiting on feasibility report. Expected to be upwards of 150 FTE.

Likely jobs during operation: The Proponent believe that the Cassowary Coast Regional Airport development will create 1000’s of jobs on the back of the aviation sector; boosting economic development in freight and logistics, upscale fruit and agricultural production and further “flow-on” employment. 1000’s of regional jobs will be maintained as a result of a transition away from cane and bananas as a core proposition, moving to a higher value agricultural and horticultural offering.

Other ancillary benefits to the community: The Innisfail logistics hub at Innisfail Airport has been on the State’s radar for over a decade and this initiative prompted by Innisfail Airport Pty Ltd (upgrade of Innisfail’s regional airport) will bring the vision of a multi-faceted integrated logistics hub (airport, road, rail and port) to fruition, providing huge productivity increases, logistical efficiencies, create new economic pillars within the region and drive regional employment.

Target date for financial close: Subject to government funding for feasibility study.

Target date for commencement of construction: Subject to feasibility study funding and outcomes.

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Subject to the above.

Factors that are holding the project back from progressing: Financial support; Innisfail Airport Pty Ltd have already spent considerable funds initiating the discussion and participating in the EOI process. It is now the role of local and state to fund the feasibility study required.


• The project is well supported in the region; • Local government (Cassowary Coast Regional Council) support; • State member for Kennedy, Shane Knuth; • Federal member for Kennedy, Hon Bob Katter; and • State Tourism Minister Kate Jones – absolute verbal support and commitment to assist as a

result of a presentation in conjunction with Shane Knuth in April 2019.

Additional government support that could help bring the project to fruition: Public statement committing to the regional asset growth and funding for the feasibility study.

Other pertinent information: A greenfield airport development anywhere in Australia is incredibly difficult due to planning and community hurdles; here in Innisfail we have existing airport infrastructure surrounded by other key logistical components (Road, Rail and Port), which will require in relative terms minimal planning complexity due to the existing infrastructure.

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6.3.3 Detailed Project Description: Castaways Resort & Regional Convention Centre


Mission Beach is an exceptionally beautiful part of the Tropical North Queensland coast between Cairns and Townsville, with low hills in the background and rainforest coming right down to the beach.

Castaways is located at a prime, centrally situated location with direct access to the beach across the lawn.

The Mission Beach area has a long history in tourism, including the Dunk Island and Bedarra Resorts immediately off the coast in front of the Castaways Resort and with the coral reefs of the Outer Great Barrier Reef closest off the mainland in the region and easily accessible for reef visitation.

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Region and Mission Beach Bounce Back

The Global Financial Crisis (GFC) and very high Australian dollar period resulted in a setback to the Cairns/Tropical North Queensland regional tourism 2008 - 2013, but with a more competitive Australian dollar, it has been rebounding strongly, and, to new record levels.

The Mission Beach area received an additional setback in 2011 from Cyclone Yasi that, against a background of increasing costs of offshore operations, resulted in the closure of the iconic Dunk Island Resort. However, taking into account that up to this point in time Dunk Island has not been replaced, the indications are that the area’s traffic has been coming back strongly in line with what has been happening in Cairns, the Cairns Northern Beaches and Port Douglas.

Place of Castaways in Mission Beach Accommodation

Within the Mission Beach area, there is substantial accommodation accounted for by backpacker hostels, holiday let houses and holiday flats, and hotel/motel style accommodation. In terms of size, location and quality, Castaways is a lead property in the resort category at present and its redevelopment and expansion will place it in the role of the former Dunk Island resort as the “signature” property in the area.

The Proposed Development

The Castaways Resort is in a prime location with direct beach-front access at Mission Beach. The first stage of development is proposed to develop regionally competitive conference and events facilities of 400 sq. metres capable of seating 240 at tables and 468 in conference-style seating.

Stage 2 of the project will involve demolishing the existing -room resort, restaurant and function facilities and replacing it with 105 units and 21 holiday flats, many with dual key configuration and totalling 226 individual rooms.

The development will include restaurant and car parking of 161 spaces.

Project website: http://www.thenewcastaways.com.au

http://www.thenewcastaways.com.au/

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Project proponents: The Neville-Smith Group: The Neville Smith Group (NSG), was established in 1924 by Francis Neville Smith. Neville, as he was referred to, was a trader and developed a business trading building material from Tasmania to Victoria.

In QLD, the NSG owns and operates Castaways Resort & Spa and has plans to develop this beachfront land in to a 5-Star Resort and Convention Centre. The group is prominent in the region between Townsville and Cairns, with several tourism-based operating businesses supporting its core resort asset.


The region is well-positioned as the up-and-coming hub for adventure and eco-tourism, with key world-class tourism assets like the White-Water Rafting on the Tully River, the best skydive beach landing in Australia and awe-inspiring, healthy Great Barrier Reef sites a stones-throw from Mission Beach.

The natural adventure assets of the region have been recognized with international eco-tourism events like the World White-Water Rafting Championships on the Tully River (2019), Red Bull Defiance race (2019-2021) and Onna Mission Multi-sport race (annual).

The Neville-Smith Group seeks to provide a 6-star sustainable development and tourism asset, fitting with the region’s high environmental value proposition and aim to be an industry leader in this regard.


Full project $70 Million.

Stage 1 (Convention Centre & additional room inventory): $12M.

Expected sources of funding: A combination of:

• Neville-Smith Group funding; • Equity injection; • Bank finance; and • Government assistance (required as this is a greenfield project in a relatively new tourism

destination).


The Neville-Smith Group have commissioned a full economic impact report on the development proposal, which indicates an additional 220 jobs created during the construction phase and a “flow-on” regional workforce increase of 390 positions. This represents an indicative regional workforce increase of 2.5% on direct employment and 3.3% including the “flow-on” effect to regional employment.

Likely jobs during operation: Initial Employment: 170 FTE Total Employment including “flow-on”: 220 FTE

It is estimated that wages and salaries paid into the community will increase from about $3 million to about $11 million and number of additional direct jobs created by the Resort rise by about 120 from about 50 to 170.

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Other ancillary benefits to the community: At the moment, the town and region is lacking this kind of Convention infrastructure and investment. As a destination, Mission Beach and indeed the wider Cassowary Coast region is one of Australia’s untapped natural wonderlands and Castaways proposed development will be a catalyst for subsequent widespread investment, development and economic benefit throughout the region. The benefits will not just boost the tourism industry but will “flow-on” to other industries, including service, building and infrastructure.

Local government have already made a strong investment in underground infrastructure in Mission Beach in anticipation of increased community demand in the future.

The Castaways Resort & Convention Centre development has the chance to change the economic fortune of the region.

Target date for financial close: Subject to government funding – the project is shovel-ready.

The NSG are currently in discussion with global hospitality management brands and expects to be ready, subject to finance and government support by October 2019.

Target date for commencement of construction: Project is shovel-ready and immediate construction can begin subject to finance and support, aiming for early 2020.


Subject to the above, anticipated commercial operations starting in 2022.

Factors that are holding the project back from progressing: Key factors holding back the project are financial investment and government support. As a greenfield project in a relatively new, unknown destination, the NSG faces a strong challenge and are working on a multitude of platforms to raise awareness on the region and attract additional investment.


• Local government (Cassowary Coast Regional Council) support; • State member for Kennedy, Shane Knuth support; • Federal member for Kennedy, Hon Bob Katter support; and • State Tourism Minister Kate Jones – absolute verbal support and commitment to assist as a

result of a presentation in conjunction with Shane Knuth in April 2019.

Additional government support that could help bring the project to fruition: Dollar for dollar contribution for the equity piece of project. The NSG anticipate that the banks will lend 40% of project cost; additional support is required for 50% of the balance (30% total project cost).

Other pertinent information: The Neville-Smith Group have been supporting the Mission Beach asset for the last 12 years, regardless of the regional tourism catastrophic downturn in the last 11 years.

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6.3.4 Detailed Project Description: Capricorn Resort Project


Iwasaki Capricorn Integrated Resort is located on the Central Queensland coast, approximately 5km by road north of the centre of Yeppoon and approximately 60km north east of Rockhampton.

Iwasaki has received approval from State and Local government on their proposed use of the 9,000ha site. The intent is to permanently preserve 65% of the site as nature, 20% of the site for grazing and agriculture and 15% to be used for the resort development and high-quality housing

The Capricorn Resort redevelopment will include the following:

• A five-star resort with 300 rooms as well as a golf course, caravan and recreational vehicle park;

• Refurbishment of the 331-room Capricorn Resort; • A Wagyu cattle farm for farm stays, cattle and sheep farming as well as educational activities • An 8,000-dwelling residential community and village centre; • A conservation precinct; and • An airstrip for tourism, chartered flights as well as a potential fly-in, fly-out hub.

Project website:

www.capricornresort.com

http://www.capricornresort.com/

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Project proponents:

The Iwasaki Group employs 3,500 people across Australia, Japan, Korea and Taiwan. The international resort group has experience developing and managing resorts around the world such as the Yakushima Iwasaki Hotel, located on Yakushima Island, parts of which are registered as UNESCO World Heritage.

The Iwasaki Group have a philosophy for development that supports the sustainable and long-term co-existence of nature and human society.

Ibusuki City (where the Iwasaki Group owned Ibusaki Iwasaki Hotel is located) and Rockhampton City are sister cities as a direct result of the relationship of the Iwasaki family with the Capricorn region.

Iwasaki Sangyo is the core company of the Iwasaki Group. Iwasaki Group’s aim is to become an ‘inter-local company’. The term ‘inter-local’ has been coined by Yoshitaro Iwasaki, owner and CEO of Iwasaki Group and demonstrates the local focus of the Iwasaki organisation, and the contrast with the philosophy of ‘globalisation’.

The Iwasaki Group philosophy for development supports the sustainable and long-term co-existence of nature and human society. The Group take a long-term view of development and the need to consider the development in the context of the local environment. They have a record of running tourism facilities in natural settings, such as World Heritage listed Yakushima Island, and other projects which operate in national parks.

At Capricorn Integrated Resort, Iwasaki Group has invested in 9000 ha of natural environment with the intention to create a resort development and local employment, while preserving the majority of the land holding in its natural state.


Iwasaki Sangyo is the core company of the Iwasaki Group. Iwasaki Group’s aim is to become an ‘inter-local company’. The term ‘inter-local’ has been coined by Yoshitaro Iwasaki, owner and CEO of Iwasaki Group and demonstrates the local focus of the Iwasaki organisation, and the contrast with the philosophy of ‘globalisation’.

The Iwasaki Group believes one of the side effects of globalisation is the opportunity disparity between urban and regional areas. The Group believes in addressing this disparity by investing in and promoting regional areas to create prosperity and sustainability.

The founder of the Iwasaki Group, Yohachiro Iwasaki, was born in the Kagoshima prefecture in the southern part of Kyushu in Japan. Primary industry fuelled the economy and the lack of a secondary industry made the region economically vulnerable.

In the 1950’s, in an early example of the ‘inter-local’ approach, Yohachiro Iwasaki decided that tourism would be a viable industry and he began investing in tourism infrastructure in the prefecture. He made Ibusuki City a famous tourist spot, and the Ibusuki Iwasaki Hotel became one of the top 3 resorts in Japan.

Investment by the Iwasaki family in the islands of Tanegashima and Yakushima in Kagoshima Prefecture as tourism destinations has delivered economic diversity to the region, with improvements to access to the islands contributing to the success.

The Iwasaki Group philosophy for development supports the sustainable and long-term co-existence of nature and human society. The Group take a long-term view of development and the need to consider the development in the context of the local environment. They have a record of running tourism facilities in natural settings, such as World Heritage listed Yakushima Island, and other projects which operate in national parks.

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At Capricorn Integrated Resort, Iwasaki Group has invested in 9000 ha of natural environment with the intention to create a resort development and local employment, while preserving the majority of the land holding in its natural state. This has been true for the entire history of the Iwasaki family in the Capricorn region.

Iwasaki understands that preservation of the environment is key to this approach. The intention is to preserve 65% of the natural conservation area forever as national park, and also maintain harmony with nature in the development area.


In excess of $600 million.


private equity and debt finance.


Iwasaki Sangyo estimates that the development will support about– 8,500 on-site over a 20-year period.


2160 positions once the resort is operational.


This project is designed to achieve:

• Economic development, including promoting tourism in the region and preserving the 9,000 ha of high-level nature owned by the company. Iwasaki has received support for the project from State and Local Government. The question is now about how the available land will be used.

• Sixty five percent of the land holding will be permanently preserved as nature, 20% will be used for grazing and agriculture, and 15% will used for the resort development and the development of high quality and advanced housing. Nature is the very core of this project.

• Co-existence with nature, based on the Iwasaki philosophy of valuing the harmony between nature and humans. Iwasaki has proven this approach at other development sites. Through the concept of environmental sustainability, Iwasaki Capricorn Integrated Resort will bring ecologically sustainable living to Queensland.

• A cattle farming resort for 3,000 head of full-blood Wagyu as part of the tourism business. We will expand the existing grazing business and provide a range of unique activities and accommodations. With another Japanese company, we will provide high quality Wagyu and also introduce renewable energy into the business.


Not stated.


Not stated.


Not stated.

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Not stated, but EIS being progressed.


Iwasaki Capricorn Integrated Resort, a member of the Yeppoon community, was declared a Coordinated Project on December 12th, 2012 by the Queensland government. This means the project has ’strategic significance to the locality, region, or state including infrastructure, economic and social benefits, capital investment and employment opportunities’.

http://statedevelopment.qld.gov.au/assessments-and-approvals/coordinated-projects.html

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6.3.5 Detailed Project Description: North Queensland Country Club


North Queensland Country Club Resort and Equestrian Centre" include 2,800 hotel rooms and units spread over several five-storey buildings, set to be built over five stages and completed by 2044.

The project will also include a country club resort, world-class equestrian centre, arenas, horse stabling, polo fields, training areas, veterinarian services, cross-country trails and camping sites as well as an art gallery and restaurants.

Project website:

https://www.statedevelopment.qld.gov.au/coordinator-general/assessments-and-approvals/north-queensland-country-club-resort-and-equestrian-centre.html

Initial Advice Statement:

http://eisdocs.dsdip.qld.gov.au/North Queensland Country Club Resort and Equestrian Centre/Initial Advice Statement/north-queensland-country-club-resort-and-equestrian-centre-initial-advice-statement.pdf






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Project proponents:

The landowner Landmark Projects, which have owned the beachfront site north of Toolakea for over 25 years, are part of Rimbunan Hijau Group (R H Group’), a Malaysian group with interests including in forestry, hotels and media.

The RH Group is a family run conglomerate founded by the Tiong family, now predominately based in Malaysia and Hong Kong. The RH Group’s activities span eight countries, with projects and businesses in Australia, New Zealand, Papua New Guinea, Malaysia, Singapore, Hong Kong, China; and North America, including tourism, hospitality, hotel and media interests.


The proponent acknowledges the project has the potential to impact on important environmental flora and fauna that inhabit, or are thought to inhabit, the site. Initial assessments identify that impacts on the following ecological community and species of Matters of National Environmental Significance (MNES) and/or Matters of State Environmental Significance (MSES) may occur:

• Broad leaf tea-tree Woodlands in high rainfall coastal north Queensland, listed as Endangered under the Environmental Protection and Biodiversity Conservation Act 1999 (EPBC Act);

• Cotton Pygmy-goose (Nattapus coromandelianus), listed as ‘Near Threatened’ under the Nature Conservation Act 1992 (NC Act);

• RainbowBee-eater (MeropsOrnatus)listed as migratory under the EPBC Act; • Several other fauna species listed as threatened under the NC Act and/or the EPBC Act; and • Several other migratory species listed under the EPBC Act.


Direct capital expenditure of 1 billion.


TBA


300


+1000


It is anticipated that the construction and operational phases of the project will have a substantial economic benefit on not only Townsville, but the wider NQ economy. The key direct economic benefits are summarised below:

• An estimated construction cost of $1billion and a total of $2.1billion in total economic activity as a result of the initial capital investment (spread over 20-25 years);

• Approximately $350 million per annum injected into the Townsville regional economy through direct spending at the resort and equestrian centre;

• Approximately $955.9 million in wage/salary income will be added to the broader community both directly from construction and from flow on multiplier effects during the construction phase of the project;

• Approximately $366.8 million in direct (4200 jobs) and indirect (+3986 jobs) employment income annually once fully operational; and

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• Approximately $52.1 million per annum added to the broader community from equestrian events related visitors.


TBA


Subject to approvals, construction of Stage 1 could start in 2022.


2024


The project will require complex assessment and involves regulation at Local, State, and Commonwealth levels, which supports the consideration and acceptance of the project as a ‘Coordinated Project’ under Part 4 of the SDPWO Act. The specific components relevant to these approvals are to be determined as part of the ToR for the EIS, although are expected to include:

• At a Commonwealth level, the project will require approval under the EPBC Act; • At a State level and as part of the assessment under the SDPWO Act, approval is being

sought under the Aboriginal Cultural Heritage Act 2003 (ACH Act), Environmental Offsets Act 2014 (EO Act), Environmental Protection Act 1994 (EP Act), Nature Conservation Act 1992 (NC Act), the Vegetation Management Act 1999 (VM Act), Coastal Protection and Management Act 1995 (CPM Act), the Fisheries Act 1994 (FA), the Transport Infrastructure Act 1994 (TIA) and the Planning Act 2016 (PA); and finally

• At the local level, approval swill be required from Townsville City Council (TCC) under the Townsville City Plan 2014 (TCP). Other subsequent approvals prior to construction and commencement of the use will also be triggered i.e., Operational Works, Building approvals etc.


Nil


The North Queensland Country Club Resort and Equestrian Centre was declared a coordinated project in April 2019 with Queensland’s Coordinator-General now commencing an environmental impact assessment on a possible $1 billion country club resort and equestrian centre at Toolakea Beach, 30 kilometres north-west of Townsville."

Subject to approvals, construction of Stage 1 could start in 2022 and the resort could commence taking guests two year. The proponent estimates the resort will take up to 240,000 visitors per year based on its 560 rooms in Stage 1."

Key issues that will be investigated through the EIS include vegetation disturbance, potential impacts on the Great Barrier Reef Marine Park, onsite wastewater treatment, traffic and transport, flooding, increased use of the beach and natural hazards such as cyclones.

Other pertinent information:

Despite a relatively flat past few years, tourism now plays a significant role in the Townsville economy, with a total of 2.7 million visitors and an output of $1.04 billion in 2017, with Townsville now accounting for 5% of all international visitors to Queensland.

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There has recently also been a sustained, rapid growth in the Chinese outbound tourism market.

Analysis of trends in tourism in Far North Queensland results in forward regional projection of visitation to 2028, as follows:

i. Chinese visitation growing at 15% per annum to 2021-22 and 5% per annum thereafter to about 710,000 per annum by 2027-28;

ii. other international visitors growing at 2.0% per annum from 181,000 to 852,000 by 2027-28; and

iii. domestic visitors continuing to grow at long-term trend of 2.5% per annum by 654,000 to 2,550,000 by 2027-28. Total regional visitation is therefore expected to grow from 2.8 Million to 4.1 Million by 2027-28 (i.e. by about 1.3 Million or an average of 3.2% per annum).

This expected, continued growth is supported by several key factors:

• The decline of the Australian dollar; • Australia is considered ‘safe to visit’; • Relatively low travel costs; and • Softening of travel controls over Chinese residents; and Rising Chinese household income.

The project also looks to diversify away from a single market or economic driver and in doing so, develop ‘niche’ experience-based infrastructure. One such niche is equestrian tourism.

The Chinese equestrian industry has grown significantly since the Beijing Olympics in 2008, with Chinese equestrian clubs actively seeking international partnerships and collaboration to develop the sport both within mainland China and internationally.

By the end of 2017, there were approximately 1,452 Equestrian Clubs in China with an estimated 400,000 – 450,000 registered amateur riders in activities establishes a strong platform and a significant opportunity for the project t0 further assist in capturing and catering for the burgeoning worldwide and Chinese equestrian market.

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6.3.6 Detailed Project Description: KUR World Integrated Eco Resort


The project is located at Myola, approximately 22 kilometres north-west of Cairns, soon after reaching the top of the Kuranda Range. It is approximately 35 minutes’ drive from Cairns International Airport.

The project site comprises 10 titles and 648.3 hectares of pasture, regrowth, forest, open woodland and watercourses. Currently, 90 hectares (13%) of the land are being used for cattle grazing and farming activities; the balance of the site is comprised of regrowth, rainforest, open woodland, watercourses and other uses.

KUR-World intends to become a hub for nature-based, cultural, educational and agricultural tourism on the Atherton Tablelands and beyond. The resort will offer tourists, students and locals, environmentally based experiences set around four key themes, these being:

1. Luxury Eco-Tourism 2. Education and Business 3. Rejuvenation, Health and Wellbeing 4. Adventure and Recreation.

The following facilities are proposed:

• Farm Theme Park and Equestrian Centre • Queenslander Lots • Produce Garden • Lifestyle Villas • KUR-Village • Business and Leisure Hotel and Function Centre • KUR-World Campus • Sporting Precinct • Golf Clubhouse and Function Centre • Golf Course • Premium Villas • Five Star Eco-Resort • Health and Well-Being Retreat • Glamping • Environmental Areas • Services/Infrastructure

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Project website:

http://eisdocs.dsdip.qld.gov.au/KUR-World Integrated Eco-resort/EIS/chapters/chapter-0-executive-summary.pdf


Draft EIS – Executive Summary ( 1.8 MB)

Complete draft EIS

Project proponents:

The proponent of KUR-World is Reever and Ocean Developments Pty Ltd (Reever and Ocean), wholly owned by Mr Ken Lee, an Australian citizen currently residing in Macau, China.). The company’s ABN is 42 612 362 320.


The KUR-World development is predicated on the following environmental and cultural objectives:

• Protecting, managing, and enhancing the site’s environmental values for the wellbeing and enjoyment of the local community and wider FNQ region; as well as international and domestic tourists.

• Incorporating sustainable development principles from design to operation, in order to achieve accreditation from Ecotourism Australia (www.ecotourismaustralia.org.au) and EnviroDevelopment (http://www.envirodevelopment.com.au/).

• Retaining substantial areas of the site in a natural state to support high-quality, nature-based tourism experiences which acknowledge both Indigenous and non-Indigenous cultural

http://eisdocs.dsdip.qld.gov.au/KUR-World%20Integrated%20Eco-resort/EIS/chapters/chapter-0-executive-summary.pdf




https://www.statedevelopment.qld.gov.au/assessments-and-approvals/kur-world-eis-documents.html

http://www.envirodevelopment.com.au/)

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connections to the land, as well as the importance of environmental conservation to the local community.

The Draft Environmental Impact Statement (EIS) identifies the ecological values of the site and the potential impacts of the project on flora and fauna. Where the potential for impacts exist, mitigation measures are put forward to avoid or limit those impacts.

Consistent with its location near World Heritage listed areas, there are many flora and fauna species on the site that are listed under Commonwealth and State legislation.


Direct capital expenditure through the KUR-World entity - $536.4 Million.


TBA


Construction costs fall into two streams: (i) main resort construction totalling $536.4 Million; and (ii) construction through property sales totalling $318.9 Million. Construction is estimated to average about $95 Million a year over nine years, with a peak in 2020-21 at $160 Million. Direct construction employment is also expected to peak at about 348 Full-Time and Part-Time positions in 2020-21.


Direct employment generated at the resort is estimated to reach about 1,450 Full-Time and Part-Time positions by 2027-28.


The economic impacts of the project, when fully established in 2027-28, are estimated as follows:

i. total direct expenditure $470M (including away from resort) ii. addition to Gross Regional Product (Cairns SA4 region) including Type 1 flow-on effects

$345M iii. initial employment generated in the Cairns region: 2,763 iv. total employment generated including Type 1 flow-on effects in the Cairns region: 3,600.

It is estimated that when fully operational, the project will add about 2.0% per annum to Gross Regional Product in the Cairns region (with flow-on effects). The estimated employment impact (including flow-on) is estimated to add about 2.7% to the Cairns region employed workforce by 2027-28.

Apart from the direct impacts of the resort, there will be secondary impacts from expenditure by day trippers and overnight stayers amongst Kuranda shops and tourism facilities. Expenditure is estimated to run at about $36 Million a year by 2027-28, generating a further 150 jobs, most of which are likely to be filled by Kuranda residents.

Additional local employment by 2027-28 (including at the resort and due to secondary impacts), is estimated at about 500, generating a population of about 1,000 and requiring 354 additional dwellings.


TBA

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TBA


TBA


Additional information for the EIS requested by the Coordinator-General on the 18th April 2019.

Consistent with its location near World Heritage listed areas, there are many flora and fauna species on the site that are listed under Commonwealth and State legislation.


Nil


The project has been subject to considerable discussion regarding the environmental impact on the region. The job creation ability of projects is significant but so is the impact on the local community given the scale of the project.


Analysis of trends in tourism in Far North Queensland results in forward regional projection of visitation to 2028, as follows:

i. Chinese visitation growing at 15% per annum to 2021-22 and 5% per annum thereafter to about 710,000 per annum by 2027-28

ii. other international visitors growing at 2.0% per annum from 181,000 to 852,000 by 2027-28; iii. domestic visitors continuing to grow at long-term trend of 2.5% per annum by 654,000 to

2,550,000 by 2027-28.

Total regional visitation is therefore expected to grow from 2.8 Million to 4.1 Million by 2027-28 (i.e. by about 1.3 Million or an average of 3.2% per annum).

The accommodation sector in the Tropical North Queensland region in 2015-16 comprised of 3,980 rooms in hotels and resorts and 3,933 serviced apartments; a combined total of 7,913. Based on projected growth of tourism in the region, it is estimated an additional 3,800 rooms in hotels and serviced apartments would be required by 2027-28.

The project is estimated to supply 1,400 rooms in hotel, resort, serviced apartments and villas by 2027-28; well below projected regional requirements. The Cairns regional economy’s Gross Regional Product including Type 1 flow-on effects over the 10 lead-in years are estimated to total about $2.4 billion. Regional employment generated during the build-up is estimated to total of the order of 24,000 job years and when fully operational in 2027-28 in the order of 3,542 jobs in the region.

Queensland-wide impacts would be substantially higher than this because of flow-on effects to regions down the coast and to Brisbane and the south-east corner. In addition to Queensland State Product (currently at about $320 billion a year), it could be expected to be up around an order of magnitude figure of $400 million a year and employment generated including “flow- on” could be expected to be around an order of magnitude figure in the State of about 4000 a year.

By 2027-28, the combined direct and indirect impacts of the project on the Kuranda population (estimated at 5,490 without the project), is expected to result in the order of an additional 18% in 2027-28 and will require provision of an additional 354 dwellings up to 2027- 2028. The dwelling

Page 71 of 127

construction rate in Kuranda could therefore be reasonably expected to approximately double over the 10 years project lead-in period.

Notification was provided by the Australian Government, Department of Environment and Energy that on 27 June 2016 that it considered that KUR-World represented a controlled action for which assessment and approval under the Environment Protection and Biodiversity Conservation Act 1999 (‘the EPBC Act’) is applicable. On 20 July 2016, the DoEE advised that the assessment of KUR-World under the EPBC Act could be undertaken by way of bilateral agreement with the Queensland Government.

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6.4 Water Projects

6.4.1 Detailed Project Description: Municipal Wastewater Upgrades / Bioremediation


Within the water catchment of the Great Barrier reef there are 126 municipal waste water treatment plants. 96 of these plants don’t company with international tertiary discharge water standards. Just 22 of these plants are discharging over 508 t of nitrogen a year onto the Reef.

Currently non-compliant plants are discharging 11,000 Olympic pools worth of high-nutrient discharge on the reef.

Pacific Bio has a low cost water treatment solution and has an initial four projects ready for implementation. The treatment facilities are cheaper than alternative arrangement and should be implemented in the Reef catchment region as soon as possible.

The initial four projects are located in:

• Ayr/Brandon WWTP controlled by the Burdekin Council; • Condon STP controlled by Townsville Council; • Ingham STP controlled by Hinchinbrook Council; and • Charters Towers STP controlled by Charters Towers Council.

Project website:

https://www.pacificbio.com.au/

Project proponents:

Pacific Bio is an Australian aquaculture and biotech company that is setting a new standard in sustainable aquaculture, wastewater management and plant nutrition.

Incorporated in 2006 Pacific Bio is an Australian unlisted company with over 200 shareholders and more than 150 employees. It has worked closely with James Cook University in Townsville to develop proprietary know-how in harnessing nature to clean water and grow sustainable sources of nutrition for plants, animals and humans.

The purpose of the company is to help address two of the world’s most challenging issues – water purity and food security.



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The Head Office is located in Melbourne with the bulk of operations and workforce in North Queensland, bordered by the beautiful Great Barrier Reef, where production and farming facilities and our R&D team as based.

Pacific Bio operates 4 key business units that offer the following products and services:

• Aquaculture (Pacific Reef Fisheries) – sustainably farming premium black tiger prawns and cobia (black kingfish), with plans to expand.

• Bioremediation (RegenAqua™) – using native, edible green algae to naturally clean nutrient-rich water from municipal water treatment plants and aquaculture facilities to protect the environment, especially the Great Barrier Reef.

• Plant Nutrition (PlantJuice™) – concentrated natural plant biostimulants, extracted from algae produced through bioremediation, stimulate root, shoot and fruit development leading to reduced fertilizer requirements, improved soil health, and more sustainable agriculture.

• Human Nutrition (ReefAsta™) – using freshwater microalgae to produce, extract and encapsulate astaxanthin - a distinct antioxidant with compelling health benefits for people.


Pacific Bio is setting a new standard in sustainable aquaculture, wastewater management and plant nutrition. Pacific Bio’s world leading algal bioremediation technology, known as RegenAqua™ provides for tertiary treatment of wastewater removing nitrogen and phosphorous levels to below the internal standards of 5mg/l and 1mg/l. Efficacy of this technology has been proven in multiple locations including aquaculture facilities and municipal wastewater treatment plants through our partnership with James Cook University. It was this technology that was accepted by the Great Barrier Reef Marine Park Authority in 2016 when they provided the first permit for a new aquaculture facility in Queensland since 2001.


Ayr/Brandon WWTP – $3.5m

Condon STP - $4.5m

Ingham STP - $3.5m

Charters Towers STP – $3.5m


Co-funding between federal, state and local government & related entities (e.g. GBR Foundation).


Ayr/Brandon WWTP 20

Condon STP 20

Ingham STP 20

Charters Towers STP 20


Ayr/Brandon WWTP 4

Condon STP 5


https://www.pacificbio.com.au/bioremediation-services/

https://www.pacificbio.com.au/plant-nutrition/

https://www.pacificbio.com.au/human-nutrition/

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Ingham STP 3

Charters Towers STP 3


Environmental via removal of wastewater from cycle and replacement with high-quality water for overall benefits for surrounding area. Socio-economic with local jobs and supporting businesses. Local product generation feeding into the ‘local-circular solution’ by returning nutrients and carbon back to the surrounding agricultural land.


Plants would be constructed one after the other

Ayr/Brandon WWTP - First

Condon STP - Third

Ingham STP - Second

Charters Towers STP - Fourth


Planning/design would commence directly after financial support is confirmed, with approvals expected within 12-18 months of the commencement of this phase.


Generally nine months after construction commencement.


Lack of funding available for capital works and ongoing operation.

Lack of regulatory action on existing operations to clean up their operations to modern standards.


It is clear that the GBR is under threat.


These projects should be funded rapidly. For too long little has happened to improve the reef water quality.

These projects are clear and identifiable projects that will improve water quality on the reef and bring Australian water treatment plants up to international standards.

Co-funding between federal, state and local government & related entities (e.g. GBR Foundation).

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6.4.2 Detailed Project Description: Hells Gate Dam and Pumped Hydro Project


It is approximately 120 kilometres north of Charters Towers and north-west of Townsville (almost on a straight line between Townsville and Greenvale) and approximately 50 kilometres west of Paluma.

Project website:

https://s3-ap-southeast-2.amazonaws.com/os-data-2/townsvilleenterprise-com-au/documents/hells_gates_dam_-_executive_summary.pdf

Based on a recent studying undertaken by SMEC Australia “the project involves over $5 billion in enabling infrastructure and over $1 billion of on-farm investment during construction, resulting in the creation over 4,000 long-term regionally appropriate jobs and delivering $1.3 billion of GRP annually into the North Queensland economy.”

The study claims that “The Hells Gates Dam Project and the associated infrastructures will open and future-proof the North Queensland economy through bulk agricultural produce, renewables energy, water security and socio- economic development for the region.

The environmental, cultural heritage and engineering work undertaken established the potential of a 2,110 GL dam that could supply water to a 50,000-ha irrigated infrastructure scheme, while also providing long term water security to both Charters Towers and Townsville.

While the design remains at feasibility level, and requires significant additional field studies, drilling and investigation, there is a technical pathway to a project that includes:

• Immediate development of up to 5,000 ha of annual crops with potential for additional perennial cropping by securing water from Big Rocks Weir;

• Staged infrastructure development to support 50,000 ha of irrigated horticulture, including fruit, vegetables, pulses / legumes, and broad-scale agriculture of both perennial and annual crops;

• Upgrades to the road network to handle freight and tourism traffic;



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• Economic development opportunities in food processing in Charters Towers, Greenvale and the Townsville State Development Area;

• Export opportunities of fresh foods and processed foods through the Port of Townsville and Townsville Airport to south-east Asia and southern Australian cities;

• A pumped hydroelectric scheme of up to 1200 MW OA 20 MW solar farm and 15 MW run-of-river hydro facility at the toe of the dam;

• Major upgrades to the power network in the Charters Towers region to allow development of on-farm water pumping and food processing;

• Long-term water security for the City of Townsville, post-2035 (from Hells Gates Dam); • Long-term water security for Charters Towers Regional Council (from Big Rocks Weir); • Socio-economic development of the communities around the Hells Gates irrigated scheme

and long- term employment for over 4,000 people; and • Recreational (fishing, water sports) and tourism (caravan parks, gourmet foods) activities on

a dam that will hold more capacity than the current largest dam in Queensland (Burdekin Falls) within 2.5 hours of Townsville.

IMPORTANTLY – SMEC reiterate that further investigation works are substantial – potentially exceeding $24 million in drilling and study costs and taking as long as 4 years to complete.

Project proponents:

The development of Hell Gate will be managed by that Northern Queensland Water Infrastructure Authority. Given the scale of the project most of the development work and risks will need to be supported by Governments


Considerable environmental work needs to be undertaken before the project can proceed. Significant studies need to be undertaken to review complex matters involving water balance that the structure and nature of environmental flows that must be maintained.

As stated in the SMEC report the main risks to the project are articulated in the report and include “issues such as costs of water likely to restrict the viable cropping opportunities, the absence of a water allocation or allowance under the Water Plan and the capacity of markets to absorb significant additional horticultural production”.

An Environmental Assessment, based on desktop assessment and site flora and fauna surveys, did not identify any major barriers to development. The projects scale and proximity to various environmentally sensitive areas such as wetlands and river systems, however, dictates that a formal Environmental Impact Statement (EIS) be conducted in subsequent development phases.

The project area for the Hells Gates Dam Feasibility Study largely lies within the traditional homelands of two distinct Aboriginal Parties (Traditional Owner groups) – the Gugu Badhun People and the Gudjala People. A thorough consultation process and site monitoring was carried out with the Gudjala and Gugu Badhun Aboriginal groups to ensure the appropriate legislation, processes and protocols were followed.

While archaeological records confirm that a diversity of Aboriginal cultural heritage sites and values have been recorded in the wider Charters Towers and Greenvale areas, the cultural heritage component of the investigation did not identify any culturally sensitive artefacts or constraints during on-site soil sampling.

The desktop cultural heritage study and the preliminary risk assessment has concluded that the proposed dam project would be a high impact activity, with the potential to have major adverse and irreversible impacts upon Aboriginal cultural heritage sites, places, landscapes and values.

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Future planning and design phases must address and comply with the statutory provisions of the relevant cultural heritage legislation, and particularly the Cultural Heritage Duty of Care under the Aboriginal Cultural Heritage Act (ACHA).


SMEC claim that “the development of the proposed Hells Gates Dam is a challenging investment proposition given its nation- building scale and the likely ramp-up time for production of high value tree crops. It is the opportunity of a lifetime to develop a large tract of highly viable land, create 4,000+ jobs and inject $1.3 billion of GRP annually into the North Queensland economy.”


This is highly uncertain given environmental studies needed and economics of the proposed agricultural activities.

North Queensland Water Infrastructure Authority has been established by the Federal Government to oversee the delivery of all major projects that fall underneath the NAIF, including Hells Gates and Hughenden Irrigation Scheme. TEL is leading the business case for Hells Gates and Big Rocks, not the Hughenden Irrigation Scheme.


Unclear


Unclear


The establishment of the Northern Queensland Water Infrastructure Authority to oversee the project is a positive development. Projects like this are complex and continuity is required over time to determine the likely feasibility of the project.

We now understand that Townsville Enterprise oversaw the initial work of delivering the Feasibility Study, along with SMEC, Premise, AEC, and Brazier & Motti, and will lead the process to deliver another independent business case for the Hells Gates Project.


The Federal Government has committed $54M towards Phase 1 of the Project which includes $30M for the first stage of Big Rocks Weir at Charters Towers – a component of the Hells Gate Project. The remaining $24M is for detailed engineering, construction, enhanced economic modelling works, environmental surety and satisfaction of cultural heritage interests quantifying the Hells Gates Dam program.

IMPORTANTLY – Funding of Big Rocks and its early stage development will be critical to the feasibility of the Hell Gate Dam. Should the additional available water trigger investment in high value agriculture in the region at scale it will support the prospect that additional water in Hell Gate Dam could be economically utilized. We consider that the government will need to provide additional support and manage land holder issues around Big Rocks will be required to encourage high value agricultural activates to start


As stated by SMEC Key steps to support and de-risk the proposed Hells Gates Dam development include:

Page 78 of 127

• Releasing water allocations for development and irrigation of parcels of land adjacent to the Burdekin River, referred to as the Burdekin Zone, prior to Dam construction;

• Supporting trial cropping to de-risk production on a significant scale, especially within the initial developments of the Burdekin Zone and to secure water supply available from the near-term construction of Big Rocks Weir;

• Gaining environmental approvals and delivering developed engineering works to reduce the identified capital costs. The current early-stage design retains significant risk factors that are highly likely to be reduced with further research and design development;

• Financial support for the development, including through Commonwealth and State grants. During construction, support through the National Water Infrastructure Loan Facility and the Northern Australia Infrastructure Facility, potentially complimented by the Clean Energy Finance Corporation; and

• Further development of related high-return opportunities such as the prospective large-scale pumped hydro-electric scheme (PHES) that could improve the overall scheme CBR, NPV and IRR results significantly if proven to be technically viable.

Excluding the prospective PHES and bulk water supply to Townsville, construction of the proposed Hells Gates Dam development has the potential to support substantial economic activity for North Queensland. During construction, the project is estimated to support:

• $5.7 billion in total output (including $3.7 billion directly) • A $2.3 billion contribution to gross regional product (GRP) (including $1.4 billion directly) • $1.0 billion in income for local workers (including $474 million directly) • 10,855 FTE jobs (including 4,607 direct FTE positions).

We would recommend that the Governments sets aside capital to support the construction in irrigation infrastructure close to big Rocks weir so as to accelerate the establishment of high value agricultural activities.

These activities will be critical to the establishment of the full feasibility study analysis on the Hell Gate Dam. Given the time involved undertaking water balance studies on the river systems involved there should be time to see actual investment and get underway using additional water created from the Big Rocks Weir Project.

Page 79 of 127

6.5 Renewable Energy Projects

6.5.1 Detailed Project Description: Kidston Renewable Energy Hub


Located in Kidston this project is a diversified renewable production and storage facility. The Kidston Renewable Energy Hub is a world first solar and pumped hydro storage project utilizing existing infrastructure from a disused gold mine.

When it proceeds, the Pumped Storage Hydro project will be the first such project to be built in Australia in over thirty years, and the first ever by the private sector. It is expected to unlock a number of other PSH projects around the country which are currently under early stage development.

• Stage 1: 50MW solar PV (KS-1). Developed and constructed 2017. KS-1 has been generating electricity into the National Electricity Market (NEM) since December 2017.

• Stage 2: 250MW Kidston Pumped Storage Hydro Project (K2-Hydro). Advanced development. Financial Close anticipated 2019. Paired with 165MW Solar Project (K2-Solar)

• Stage 3: Up to 150MW Wind Project (K3-Wind)

Project website:

Company website: https://www.genexpower.com.au/

Stage 1: https://www.genexpower.com.au/50mw-kidston-solar-project.html

Stage 2: https://www.genexpower.com.au/250mw-kidston-pumped-storage-hydro-project.html

Page 80 of 127

https://www.genexpower.com.au/270mw-kidston-solar-project.html

Stage 3: https://www.genexpower.com.au/150mw-kidston-wind-project.html

Project proponents:

Genex is an ASX Listed development company is the Proponent and currently 100% owner of the projects. In relation to K2 Hydro, Genex has signed a term sheet with Energy Australia under which EA will provide long term offtake and take a 50% equity stake in the Project vehicle.


Stage 1:

• Powers 26,000 homes and offsets 120,000t of CO2/yr. • Solar farm is constructed on old tailings storage facility, and provides environmental benefits

in run-off control

Stage 2:

• Solar paired with hydro cuts the same amount of pollution as taking 33,000 cars off the road • The integration of solar and hydro has the ability to dispatch power when needed to

280,000 homes • The hydro project is a unique re-purposing of an old gold mine to a productive energy

storage and generation facility • All environmental permits in place


• Stage 1. KS1 $126 million (complete) • Stage 2. K2-Hydro approx. $400-600million • K2-Solar approx. $250m • Stage 3: K3-Wind approx. $350m


The project will be funded with a combination of debt, equity and grants and will reach financial close this year with construction to start before Christmas.

Participants in the project are expected to include Energy Australia as off taker, commercial banks, NAIF debt and ARENA, with Genex project equity sourced from J Power of Japan.

The Queensland Government Has recently announced that it will provide $132 million to fund the construction of the 275 kv transmission line from Mt Fox to Kidston.


Stage 2: K2-Hydro and K2-Solar offer up to 800 jobs during construction (including associated transmission line).


• Stage 1: KS1 = 6 actual /current • Stage 2: K2-Hydro = 20 and K2-Solar = 10 • Stage 3: K3-Wind = 8

Page 81 of 127


The Kidston Pumped Storage Hydro Project is a scheduled generator hence, the facility is capable of dispatching renewable energy on command. K2-Hydro significantly reduces the volatility associated with intermittent generation e.g. solar and wind farms.

Therefore, K2-Hydro has the potential to suppress energy prices in the late afternoon /night/early morning through its ability to dispatch 2000MWh over an 8-hour period.

K2-Hydro is a synchronous generator, and as such provides grid strength and stability to the network. Transmission network strength in North Queensland is a significant issue, and a synchronous generator such as K2-Hydro will provide the network stability which is needed to enable continued growth in renewable generation.

Kidston is a remote community in North Queensland which in the past benefited economically from the large gold mining operation. The renewable energy hub will reinvigorate the community: it not only provides significant direct and indirect local job opportunities; it will also be a focal point to attract tourism and other industries to the region.


• Stage 2: K2-Hydro = 2019 and K2-Solar = 2020 • Stage 3: K3-Wind (subject to feasibility) 2020/21


• Stage 2: K2-Hydro = 2019 and K2-Solar = 2020/21 • Stage 3: K3-Wind 2021


• Stage 1: KS1 = 2018 • Stage 2: K2-Hydro = 2022 and K2-Solar = 2022 • Stage 3: K3-Wind = 2022


Stage 2: Awaiting confirmation from Queensland Government regarding co-funding of transmission line connection.


Strong engagement and support from Etheridge Shire Council Planning and local permits), State Government (declared the Project Critical Infrastructure and Coordinated Project), and Federal Government (NAIF and ARENA).

Page 82 of 127

6.5.2 Detailed Project Description: Lakeland Wind Farm


Lakeland Wind Farm is a wind energy project located 60km south west of Cooktown. When operational the project will provide enough clean energy for over 50,000 households. The project will include up to 30 wind turbines as well as electrical infrastructure and will produce around 100 megawatts of power for North Queensland, connected via the national electricity grid.

Project website:

https://www.lakelandwindfarm.com.au/

Project proponents:

Windlab Limited (ASX: WND) – Australia’s international wind energy company.

Windlab is an Australian company, is developing the project from its Canberra headquarters


The Queensland Department of State Development, Manufacturing, Infrastructure and Planning issued the Development Approval for the Lakeland Wind Farm

The wind farm will operate for at least 25 years and generate enough power to supply more than 50,000 homes – similar to the number of households in Cook Shire, Mareeba Shire, Tablelands Region, and northern Cairns suburbs combined.

Page 83 of 127


$220 million


Windlab also announced that it has executed a binding term sheet with Flow Power for the sale of 50MWs of electricity output and associated Large Scale Generation Certificates from its proposed 104MW Lakeland Wind Farm project, for a period of up to 10 years.

Windlab is finalizing Equity and Debt for the project.


120


5


Lakeland Wind Farm is committed to funding a community development program on an annual basis during construction and operation of the wind farm.

Lakeland Wind Farm is committed to using local content, labour and services for construction wherever possible and is seeking expressions of interest from local suppliers.


December 2019


February 2020


June 2021


Transmission and the high Marginal Loss factors now in North Queensland are becoming an issue. North Queensland need more load and key transmission links need to be built.

Page 84 of 127

6.5.3 Detailed Project Description: Kennedy Energy Park


Kennedy Energy Park is a world’s first utility-scale hybrid wind, solar and storage project. The project is constructed and undertaking commissioning. Operation will begin in 2019. It is located 22 km east of Hughenden in Flinders Shire, Queensland, approximately 290 km south-west of Townsville. It forms the first part of Windlab’s Kennedy energy precinct that will provide significant economic and environmental benefits to North Queensland. This precinct will include up to 1.2 GW of wind and solar power when fully developed.

The location for the site was selected by Windlab due to its extra-ordinary resource offering of both wind and solar. Whilst the solar irradiation is one of the highest for grid connected projects by world standards, the site’s wind profile is such that it is stronger in those times when the solar generation is naturally lower. This complementary relationship provides particularly strong wind power during night time, early morning and evening hours. The Kennedy region-specific wind resource offering is of particular value in the QLD network to balance the thousands of MWs of both utility-scale and roof-top solar PV capacity both existing and proposed.

The result of this complementary relationship is reliable renewable electricity generation that overcomes the intermittency so often associated with wind energy or solar energy alone.

The Kennedy Energy Park site is located north of the Kennedy Energy Park. With a target project size of 1.2GW it is envisaged that the project will be split into two phases of each approximately 600 MW.

Project website:

https://arena.gov.au/assets/2017/02/Kennedy-Park-FinClose-Report-Windlab.pdf

https://www.windlab.com/our-projects/kennedy-energy-park/

https://arena.gov.au/assets/2017/02/Kennedy-Park-FinClose-Report-Windlab.pdf

https://www.windlab.com/our-projects/kennedy-energy-park/

Page 85 of 127

Project proponents:

Windlab Limited (Windlab) is an Australian based, international renewable energy development company, listed on the Australian Securities Exchange under the code WND.


WIndLab has developed numerous projects across Australian and internationally and has a very solid track record with regard to environmental analysis and management. The site has been subject to extensive resource monitoring and numerous environmental studies have been completed.


$2,500m


TBA


Approximately 250.


Up to 25.


Due to its scale the project may attract component manufacturing to the Townsville region. Abovementioned construction jobs as well as significant opportunities for the extra-ordinary large network infrastructure requirements of this large project. It is envisaged that there would be project synergies with CopperString, with Kennedy Energy Park providing a large amount of reliable renewable energy to the NW Mineral Region. Target date for financial close:

TBA


TBA


TBA


Lack of progress on Clean Energy Hub and substantial transmission augmentation; system strength requirements and MLF uncertainty are all a concern.



• Commitment to suitable Clean Energy Hub and transmission backbone, whole-of-state investment in infrastructure

• Long-term off-take agreement (government underwriting) • Whole-of-State Investment in infrastructure that will stabilize system strength (rather than

piece-meal synchronized condensers, for instance).

Page 86 of 127


Grid connection and system strength infrastructure are issues faced by all proponents.

This project being of extra-ordinary scale, it is envisaged that it has greatest potential for providing highly significant and a crucial contribution towards reaching QRET, the QLD government’s Renewable Energy Target of 50% by 2030, in the most cost effective manner.

Page 87 of 127

6.5.4 Detailed Project Description: Clarke Creek Solar Farm


Located in central Queensland’s Isaac Shire, Clarke Creek Solar Farm is a proposed large-scale solar photovoltaic power station.

The site has been identified as an area highly suitable for efficiently capturing solar energy – the region is subject to 2,095 kWh/m² per annum, making it one of the strongest regions in the country for solar irradiance that has strong connections to the National Electricity Market (NEM).

The development of Clarke Creek Solar Farm will seek to reduce greenhouse gas emissions by proposing a renewable energy source for the local and surrounding community.

Some of the key characteristics of the Clarke Creek site include:

• flat to slightly undulating terrain with minimal trees and vegetation; • currently rural land, with some areas used for cattle agistment; and • strong potential to connect to the National Electricity Market (NEM).

Pacific Hydro submitted a planning application for Clarke Creek Solar Farm to Isaac Regional Council on 31 July 2018 for a Material Change of Use (MCU) Permit for the site.

Planning permission was received from Issac Regional Council in January of 2019.

Clarke Creek Solar Farm is expected to have a generating capacity of up to 315 MW, enough to power approximately 196,000 homes.

Page 88 of 127

Project website:

http://www.pacifichydro.com.au/english/projects/development/clarke-creek-solar-farm/?language=en

Project proponents:

Founded in Australia in 1992, Pacific Hydro is a global renewable energy owner, operator and developer. It operates a high quality, diversified portfolio with an installed capacity of 1 GW+ across Chile, Australia, and Brazil; it is also developing a substantial number of projects totalling over 2 GW of potential capacity; and has a growing electricity retail business in Australia.

Pacific Hydro has an established record of identification, development, and operation of renewable energy assets, and significant in-house expertise across our international operations.

Pacific Hydro was acquired by the State Power Investment Corporation (SPIC) through its subsidiary, State Power Investment Overseas of China (SPIC Overseas) in January 2016, after obtaining approval from the Australian Government’s Foreign Investment Review Board (FIRB) and participating in a highly competitive international sale process.

SPIC is one of the top five power generation groups in China, with US$131 Billion total assets and a total installed capacity that exceeds 131 GW. SPIC operates in the generation, coal, aluminium, logistics, finance, environmental protection, and high technology industries. SPIC has a presence in 36 countries and regions abroad, including Australia, Chile, Malta, Japan, Brazil, Turkey and Vietnam.


Clarke Creek Solar Farm is expected to have a generating capacity of up to 315 MWac, enough to power approximately 196,000homes.


TBA


TBA


Approximately 240.


Up to 6.


Direct community investment of more than $2.5m over the life of the solar farm; sponsorship of important local events; local supply chain benefits.


TBA


TBA



Page 89 of 127


TBA


Introduction of Electrical Safety (Solar Farms) Amendment Regulation 2019; lack of Federal Government policy certainty; system strength/MLF uncertainty; unfavourable market conditions.

Additional government support that could help bring the project to fruition:.

Long-term off-take agreement (government underwriting/ CFD).

Whole-of-State Investment in infrastructure that will stabilize system strength (rather than piece-meal synchronized condensers, for instance).



Page 90 of 127

6.5.5 Detailed Project Description: Haughton Solar Farm


500MW solar farm, Upper Haughton to be delivered in stages (Stage 1 – 100 MWac - in final stages of construction as at May 2019, subsequent stages in train).

Located in north Queensland’s Burdekin Shire (40km west of Ayr and 60km south of Townsville), Haughton Solar Farm is a large-scale solar photovoltaic power station currently under construction.

The site has been identified as an area highly suitable for efficiently capturing solar energy – the region has one of the highest levels of solar irradiance in Australia, receiving 2,095 KWh/m² per annum.

The development of Haughton Solar Farm will seek to reduce greenhouse gas emissions by proposing a renewable energy source for the local and surrounding community.

Some of the key characteristics of the Haughton site include:

• flat terrain previously cleared through laser levelling with minimal trees and vegetation; • currently vacant rural land, with some areas used for cattle agistment; • strong potential to connect to the National Electricity Market (NEM).

The north-eastern corner of the development site directly adjoins the existing 275kV Powerlink transmission line, providing the opportunity to connect to the NEM.

Pacific Hydro submitted a planning application in March 2017 for Stage 1 of the project, which will cover approximately 1,200ha. Burdekin Shire Council issued a Material Change of Use (MCU) Permit for the site in June 2017.

The solar farm is being built in stages. Construction of the first 100MW of the project commenced in 2018 following a tender process and is expected to be completed in the third quarter of 2019.

Once all stages are complete, Haughton Solar Farm is expected to have a generating capacity of up to 500MW, enough to power approximately 291,000 homes.

Page 91 of 127

Project website:

http://www.pacifichydro.com.au/english/projects/construction/haughton-solar-farm/?language=en

Project proponents:

Founded in Australia in 1992, Pacific Hydro is a global renewable energy owner, operator and developer. It operates a high quality, diversified portfolio with an installed capacity of 1 GW+ across Chile, Australia, and Brazil; it is also developing a substantial number of projects totalling over 2 GW of potential capacity; and has a growing electricity retail business in Australia.

Pacific Hydro has an established record of identification, development, and operation of renewable energy assets, and significant in-house expertise across our international operations.

Pacific Hydro was acquired by the State Power Investment Corporation (SPIC) through its subsidiary, State Power Investment Overseas of China (SPIC Overseas) in January 2016, after obtaining approval from the Australian Government’s Foreign Investment Review Board (FIRB) and participating in a highly competitive international sale process.

SPIC is one of the top five power generation groups in China, with US$131 Billion total assets and a total installed capacity that exceeds 131 GW. SPIC operates in the generation, coal, aluminium, logistics, finance, environmental protection, and high technology industries. SPIC has a presence in 36 countries and regions abroad, including Australia, Chile, Malta, Japan, Brazil, Turkey and Vietnam.


Once all stages are complete, Haughton Solar Farm is expected to have a generating capacity of up to 500MW, enough to power approximately 291,000 homes.


$1,000 million


Mixture of project finance debt and private equity.


Approximately 240.


Up to 10.


Direct community investment of more than $2.5m over the life of the solar farm; sponsorship of important local events; local supply chain benefits.


TBA


Stage 1 underway, TBA for subsequent stages.


TBA

http://www.pacifichydro.com.au/english/projects/construction/haughton-solar-farm/?language=en

Page 92 of 127


Introduction of Electrical Safety (Solar Farms) Amendment Regulation 2019; lack of Federal Government policy certainty; system strength/MLF uncertainty; unfavourable market conditions.



• Long-term off-take agreement (government underwriting/CFD) • Whole-of-State Investment in infrastructure that will stabilize system strength (rather than

piece-meal synchronized condensers, for instance).



Page 93 of 127

6.5.6 Detailed Project Description: Bunkers Hill Pumped Hydro


Pumped Hydro, North QLD (Up to 300 MW).

Project website:

Not yet available.

Project proponents:

Pacific Hydro


TBA


~$600m - $800m



Potential sources of funding:

ARENA, NAIF, CEFC, Underwriting New Generation (2nd round).


TBA


TBA


TBA


TBA


TBA


TBA


Lack of guaranteed revenue streams that are less dependent on the market.


TBA

Page 94 of 127


• Underwriting new generation initiatives (State and Federal) • Grant funding and loans • Streamlining of processes (potentially through a “State Significance” scheme. • Additional market mechanisms for provision of new ancillary services (e.g. system support)



Page 95 of 127

6.5.7 Detailed Project Description: Mt Fox Energy Park


A staged hybrid (Wind/Solar) development of up to 460 MW (depending on runback agreement with PowerLink) on a 2500-acre freeholding, with option on neighbouring property also 100 Km NW of Townsville, near Ingham.

Two connection opportunities exist, approx. 30 MW on the 66kV Ingham/Greenvale line and on the 275-kV line we are currently modelling 140 MW & 400MW options.

Project website:

www.zephyrenergy.com.au (Project website in development)

Project proponents:

Zephyr Energy Developments Pty Ltd.


TBA


Detailed budget pending.


TBA


During wind farm construction, approximately 300, plus local industry patronage. (Quarries, trucking companies, hotels, etc.).

http://www.zephyrenergy.com.au/

Page 96 of 127


10-15 jobs ongoing.


Benefits to the community may include access to Advanced Weather profiling and other generated environmental data for local industry, agriculture and town planning, patronage of local businesses, transport, shops, restaurants, etc. road improvements and other local infrastructure upgrades, inclusive community engagement and educational programs for local schools.


Mid 2021

Target date for commencement of construction: – Mid 2021.


Second half 2022.


None at this point.


None at this point.


TBA


The land lease has been secured and we are currently preparing our connection enquiry and community/ stakeholder engagement strategy.

We are undertaking Aerial topographical LIDAR and hi resolution photographic surveys concurrently with resource modelling.

Aiming at DA submission by November 2019.

Please note that the project is in early strategy development and has not yet completed its community engagement strategy and notification protocols. As a result, this information should not be made public until notified by the project proponent.

Page 97 of 127

6.5.8 Detailed Project Description: Lacour Clarke Creek Wind & Solar Farm


The Clarke Creek Wind and Solar Farm project is located 150 km north west of Rockhampton and 150km south of Mackay in the Isaac Shire and Livingstone Shire areas.

Project developers Lacour Energy announced that the 800MW Clarke Creek Wind Farm had secured environmental approval from the federal government and was preparing for construction to begin in 2019.

The $1 billion wind project, which will be delivered by Goldwind Australia

The project extends across the land of eight local families, with the wind turbines located on the mountain range and the solar farm on the lower ground near the Marlborough-Sarina Road.

The project is in an area of high wind and solar resources and close to an existing main road from Marlborough to Sarina. The project is also adjacent to the existing high voltage electricity transmission network, with three large transmission lines providing the ability to connect the very large power project.

The construction of the Wind and Solar Farm will be a significant investment and take up to 3 years to fully complete. At its peak the workforce that will be involved in construction is expected to be 350 people.

Once operational, the wind farm production will be enough to power around 590,000 Queensland homes, supplying around 4% of Queensland’s electricity.

The wind and solar resource measurements we have taken indicate that the wind is strongest overnight, while the solar power output will be during the day. The combination of wind and solar power is therefore very complimentary.

Lacour said the wind farm, once complete, would generate enough electricity to power around 590,000 Queensland homes, and supply around 4 per cent of the state’s electricity.

Page 98 of 127

.

Page 99 of 127

Project website:

http://www.clarkecreekwindandsolar.com.au/

Project proponents:

Lacour and Goldwind Australia.


The project has now received Federal Government approval under the Environment Protection and Biodiversity Conservation Act (EPBC Act). Earlier this year, the wind farm project received Queensland Government planning approval for up to 195 wind turbines and approval was earlier secured for a 400 MW solar farm and a large utility scale battery.

The combination of wind, solar and battery represents a very large-scale integrated renewables power station located at one of the strongest locations of the Queensland power system – no grid extension is required. Importantly, the wind resource is night biased, complementing daytime solar production.


The total project investment is ~ $1 Billion.




Estimated 350 jobs during the 24 - 36-month construction period.


20 full time jobs during operations.


The project will bring significant investment into the area and we wish to share the benefits and opportunities with the wider community.

As well as employment opportunities, a community fund will be established for use on projects that benefit the wider community with a priority given to projects in Clarke Creek and the local area. The fund will provide $200,000 every year for projects or initiatives within the local region.


Mid 2019.


Mid 2021

Page 100 of 127

6.5.9 Detailed Project Description: Majors Creek Power Station


200MW AC single axis tracking solar farm located near Woodstock, QLD combined with systems strength solution and storage solutions.

Project website:

See www.edifyenergy.com

For other projects in Edify Energy’s portfolio.

Project proponents:

Edify Energy.


Comprehensive environmental and ecological surveys were undertaken during the planning approval process. Townsville City Council has issued Development Approval for the solar farm and a ~ 400 MW battery.

Federal EPBC approval obtained.

The project is Not A Controlled Action.


~$400m – $500m+


Private sector equity (including Edify Energy maintaining a minority interest) and debt providers.


~400 – 600 peak.


~10.


The Majors Creek Power Station is being developed in conjunction with a number of industrial tenants that are to be located at the Lansdown Industrial Precinct. It is to provide both a direct (behind-the-meter) source of solar power to these customers as well as provide the point of connection to the wider network.

It is therefore playing a key facilitation role in liberating a large industrial precinct that will provide for an estimated 5,000 ongoing jobs to the residents of Townsville.

The site also has great links to rail infrastructure and a gas pipeline and can be used for hydrogen production.


Q4 2019.

http://www.edifyenergy.com/

Page 101 of 127


Q4 2019


Q1 2021


MLF and the recent QLG govt changes regarding the electrical trade’s union.


Townsville City Council and QLD Government have exhibited strong support for the Majors Creek Solar Farm and its network connection arrangements with the Lansdown Industrial Precinct.


Offtake arrangements are grid infrastructure funding support.

Page 102 of 127

6.5.10 Detailed Project Description: Kaban Green Power Hub


Up to 29 wind turbines (130MW total) and battery storage up to 100MW near the town of Ravenshoe in Queensland.

Project website:


Project proponents:

Neoen Australia


Project has Development Approval. The Kaban Green Power Hub will be built on private land. Although spread across a large land area, the turbines will create minimal disruption to agricultural activity and will require little vegetation clearance.

Vegetation screening to minimise visual impact will be planted around landholders’ and neighbours’ dwellings. Built adjacent to the project substation, the batteries themselves will occupy less than a hectare of land and will have a negligible visual presence or environmental impact.

The project will:

• Displace 332’000 tonnes of CO2 per year; • Power approximately 57,000 average homes; and • Reduce emissions to the equivalent of removing 980,000 cars from the road or the

equivalent of planting half a million trees.


$300million AUD.


Neoen equity and project finance.


150


5 ongoing permanent positions.


Represents a total investment of $300m: approximately half of this investment will cover Queensland goods and services, adding $150m of value directly to the Queensland economy.

Neoen has committed to establishing a Community Fund to fund local projects and initiatives over the 30-year life span of the project.


Page 103 of 127

6.6 Transmission Infrastructure Projects

6.6.1 Detailed Project Description: Copperstring 2.0 Transmission Project


The CopperString Project (the Project), concerns the construction of a transmission line from a new sub-station on the Strathmore to Ross Transmission Line, south of Townsville, to the north west Queensland (NWQ) electricity supply system via a new connection at the Chumvale Sub-station, near Cloncurry (see below).

The planned transmission line is configured as a 275-kV alternating current (AC) line. Currently the North West Queensland electricity supply system is not part of the National Electricity Market (NEM). The Project will provide this connection with associated regional benefits including reliability of supply, competition in electricity supply for industry, mines and domestic applications and permitting additional renewable energy available in the region to enter the NEM. This infrastructure will enable economic and industrial development in NWQ including the North West Minerals Province (NWMP).

The Project will provide an electricity transmission network ‘backbone’ through the Northern Economic Triangle (NET), an area identified by the Queensland Government as being one of Australia’s potentially most productive economic regions. The Project would underpin the vision of the Queensland Government commitment to ‘foster sustainable economic, social and community growth through the emergence of Mount Isa, Townsville and Bowen as a triangle of mineral processing and industrial development.’

The initial study corridor traverses an identified region of significant renewable energy resources that are currently constrained by the lack of access to the NEM. Mega projects would be able to connect to the grid like the significant Kennedy wind project. These projects require a connection to the national electricity grid to be economically feasible.

The transmission line route may potentially exceed 1100 kilometres (km) in length depending on user requirements and is expected to have a total financing requirement of approximately $1 billion. The transfer capacity is intended to complement, and not replace, the existing energy infrastructure in north and north-west Queensland.

The initial study corridor, including the potential options for expansion, may exceed 1100 km and crosses several local government areas. These areas are:

• Townsville City Council • Charters Towers Regional Council • Flinders Shire • Richmond Shire • Mckinlay Shire • Cloncurry Shire • Mount Isa City and • Burdekin Shire

Page 104 of 127

Project website:

CopperString Project Initial Advice Statement FINAL | FEBRUARY 2019


http://statedevelopment.qld.gov.au/coordinator-general/assessments-and-approvals/coordinated-projects/current-projects/copperstring-project.html

Project proponents:

The CopperString project is special purpose development entity CuString Pty Ltd, an Australian Private Company based in Queensland. The proponent is the same entity that developed and controlled the original CopperString project for which an IAS was submitted in 2010 in support of an application to the Coordinator General for designation as a coordinated project. An Environmental Impact Assessment was conducted for this project. Suspension of the CopperString Project in 2012 prevented the publication of the Environmental Impact Statement.

The Corporate information is provided below: CuString Pty Ltd (ACN: 137 531 054) based in Townsville (John G. O’Brien, Director and Company Secretary). CuString is controlled by John O’Brien via a parent company (VisIR Pty Ltd) and private investment entities.

John O’Brien has a long history and credible track record of activity in the corporate sector and electricity supply industry in Australia. Most recently he has been appointed to the expert advisory panel to the Australian Renewable Energy Agency (ARENA), and he is a Graduate Member of the Australian Institute of Company Directors (AICD) as well as a Certified Practicing Engineer.



Page 105 of 127


The CopperString Project will commit, via the EIS process, to a range of mechanisms to minimise the negative impacts and enhance the positive benefits of the Project. The impact assessment process that will form the EIS for the Project will follow a rigorous and systematic methodology, involving:

• Establishing baseline data and confirmation of previous studies and information within the study area;

• Identifying potential impacts based on proposed activities; • Devising suitable mitigation measures to firstly avoid or secondly reduce these impacts; and • Estimating the significance of impacts and proposing offsets where required.

CopperString Project, as defined in the initial advice statement dated February 2019, to be a coordinated project for which an environmental impact statement is required, pursuant to section 26(1)(a) of the State Development and Public Works Organisation Act 1971.


$1000 million


A typical project development and financing strategy is being employed for CopperString that will result in CuString entering into agreements with project partners via a “sell-down” or “farm-in” strategy to ensure the Project is sufficiently capitalised and able to meet development milestones.

This strategy reflects the approach taken previously when a relationship was established with a tier 1 construction firm (noting this relationship is now dissolved with no on-going obligations on constraints on CuString), and subsequent written (non-binding) commitments from leading global infrastructure asset managers as equity investors and an appointment of a Mandated Lead Arranging bank syndicate (comprised of three domestic and two international banks).

At the appropriate time a special purpose vehicle will be established to facilitate construction via infrastructure equity and debt


400


30


During the construction phase there will be significant expenditure in the local regional economies, including the purchase of goods and services for construction and expenditure by workers based at the construction camps. The long-term social and economic impacts will depend on the extent that the region expands or develops as a result of this resource opportunity.

The mining industry is the largest employment sector of the region and the development of the Project would ensure the continued growth of the sector through greater resource and mineral exploration.

The investment of approximately $1 billion will be directly related to the Project and a significant economic stimulus in flow-on investment of other ventures in northern Queensland may result from the operation of the transmission line and the access it will provide to the NEM. Government

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revenue may also benefit in the form of greater royalty payments as a result of an increase in mineral exploration within the region.


Quarter 3 2020


Quarter 3 2020


Quarter 4 2022


This project is a significant project that will facilitate considerable growth in the region. As it crosses a significant area there is a real risk that the approval process with be longer than expected. It will be critical that the project is given priority.

On a quick review, more than 20 Acts of parliament will need to be considered various provisions conditions and approvals sought and granted.

A new Regional Reference Group hopes to ensure the CopperString 2.0 electricity transmission project to link the North West Minerals Province and Townsville gets off the ground quickly

Former Queensland minister and Mount Isa Mayor Tony McGrady has been appointed chair of the North Queensland Sustainable Resources Corridor Regional Reference Group with CopperString project founder John O'Brien deputy chair.


CopperString Project, has been announced as a coordinated project for which an environmental impact statement is required, pursuant to section 26(1)(a) of the State Development and Public Works Organisation Act 1971.

The project should be a key project for agencies like NAIF and the CEFC as they will enable the uptake of renewable energy and the introduction of additional loan that North Qld now needs along with variable generation from the existing gas fired station in Mt Isa to help balance the grid.

https://www.northweststar.com.au/story/6006163/copperstring-20-funding-is-good-news/

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6.6.2 Detailed Project Description: Clean Energy Hub Description and location:

The Clean Energy Hub Project (the Project), concerns the construction of a transmission line in North Queensland between Townsville and Cairns allowing additional renewable energy resources to be augmented to the grid.

The Queensland government stated its intention to commit $150 million to develop strategic transmission infrastructure in North and North-West Queensland to support a clean energy hub, subject to a feasibility study. This will unlock around 2000 megawatts of renewable energy projects and support up to 4600 jobs.

Currently that status of this project is highly unclear.

On behalf of the Government, Powerlink conducted an EOI seeking market information on a range of aspects, including potential generation interest, storage options and significant load requirements. The information received as part of this process was to inform the options for potential routes for the transmission infrastructure and project timing.

In May 2018 proponents were told that the CEH is still alive but asked to re-confirm their interest. The receipt notice of the re-confirmation was the last official communication about the CEH to proponents.

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Currently proponents are confused as to the status of the projects as they were told a decision is with the government, or at some stage with the Queensland Energy Security Taskforce (DG DNRME (James Purtill), Chief Scientist (Christine Williams), etc).

Endeavours to determine the latest status, progress or likley dates about CEH from Powerlink or the DNRME have not produced results.

Recent discussions indicate that the feasibility of CEH is now being questioned, as:

• “Too many” proponents (MW) had put up their hand up for the network capacity going south (bottleneck is south of Gladstone);

• Stability issues in the northern network must be considered (SYNCONs) and are likely to complicate and increase connection costs;

• Scale of MLF issue (revenue losses for projects) has further complicated the situation.

Based on the available information we have available it seems likely that the government is reconsidering various re-incarnations of the old CEH. This process is complicated by progress on CopperString 2.0 and a proposed link to the Genex facility.

Given the very considerable transmission constraints now evident in North Queensland, a solution is needed to allow the export of power south towards Gladstone and alternative projects are being proposed including “Q-Link”, a transmission line from Hughenden down to south-east Queensland. This would enable a substantial amount of north Queensland power to be more effectively exported south.

The delay in determination of major transmission projects like this significantly stalls investment in renewable energy projects. Also, to enable north Queensland uncorrelated renewable energy resources to benefit the NEM will require the construction of additional transmission south soon.

Overlap of path with Copperstring is evident below:

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Additionally, complicated by the work Powerlink seem to be doing directly with Genex on a special solution for that project below:

Project website:

Powerlink Feasibility study

https://www.powerlink.com.au/sites/default/files/2017-12/Clean Energy Hub - Feasibility Study.pdf

Project proponents:

Powerlink

https://www.powerlink.com.au/sites/default/files/2017-12/Clean%20Energy%20Hub%20-%20Feasibility%20Study.pdf

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6.7 Manufacturing Projects

6.7.1 Detailed Project Description: Imperium 3 Lithium Battery Manufacturing Facility


Imperium3 (‘iM3’) has selected Townsville as a strategic location to build and operate a state-of-the-art 15GWh lithium-ion battery manufactory facility which will become Australia’s first ‘Gigafactory’. iM3 is backed by a collection of the world’s most influential energy storage professionals and business leaders who will use this facility to deliver the lightest, most efficient and longest life cycle lithium ion battery to the industry.

This facility will form a key pillar in iM3’s strategy to capture the rapidly growing market for lithium-ion batteries which forecast to grow beyond 1,500 GWh per annum by 2030 and effectively become a US$300 billion industry.

The subject site is part of Lansdown Station at 132 Bidwilli Road, Calcium which lies approximately 40km south-east of Townsville. The site is well suited to the large-scale lithium-ion battery manufacturing plant as it is relatively flat, cleared and isolated from sensitive land uses. It also has direct access to the Flinders Highway and Great Northern Rail Line, the main transport corridor linking inland North Queensland to the Port of Townsville, as well as the north-south transport corridor with the Bruce Highway and North Coast Line.

The site, shown in figure 1 below, is on the western side of the Flinders Highway, bounded to the north by Ghost Gum Road and south by Bidwilli Road, with a total area of approximately 400 hectares.

The battery plant is part of a new industrial estate with a total area of approximately 2,070 hectares. It will be the anchor tenant for a world class, advanced manufacturing and technology hub – the first of its kind in Queensland.

Figure 1: Proposed Site Location at Lansdown Station, Calcium 40 kms south of Townsville

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Project website:

www.iM3.com.au

Project proponents:

iM3 Townsville is backed by Boston Energy and Innovation, Magnis Technologies and Charge C4V.

Charge C4V is a company that develops Lithium-ion battery material IP and is based in Binghamton, New York. C4V has a wide range of patents to produce lithium-ion batteries.

Magnis Technologies will provide global end to end supply chain management and procurement for iM3’s next generation LIB cells. Magnis have certain Graphite IP that can be utilized in the manufacturing of a LIB as well as its Battery Grade Nachu graphite mine.

BEI is an ethical investment house that specialises in sustainable energy solutions in an environmentally sustainable manner. BEI is chaired by Mr. Bill Moss AO. Bill Moss AO is the former head of Macquarie Bank’s Real Estate division, having spent 23 years as Senior Executive and Executive Director, financing or managing over AU$30 Billion of global real estate.


To minimise cost, iM3 has developed green production processes for input battery active materials which are amongst the most environmentally sustainable production process in the world. iM3 has license to graphite anode materials that have been produced without any toxic chemicals such as hydrofluoric acid nor energy intensive high temperature processes. Further, water solvent is used in the battery manufacturing coating process; resulting in a more sustainable and environmentally friendly facility.

Negotiations are underway with renewable energy developers to maximise the use of renewable energy sources to power the manufacturing facility. Over time the plant will be integrated with upstream materials manufacture and downstream battery pack assembly to ensure the most efficient logistical solutions to minimise impact from greenhouse gas emissions.

Battery materials often require the use of Cobalt - an ethically controversial raw material. iM3 has leading cathode materials technologies that are free of cobalt, instead relying on abundant and relatively low-cost metals.


The capital cost is estimated at up to A$2.0 billion for construction, plant equipment and working capital costs for 15GWh operation. A key outcome from the feasibility is to verify this capital cost.

The products and services that will be required for site preparation and construction are forecast to be in the vicinity of A$450 million. The majority of this is expected to go to local businesses who have the experience and productivity to be a cost-effective solution to this large capital outlay and in the process enhance the future growth prospects of the precinct.

iM3 will need up to 140,000sqm of space to allow for the modular expansion of its 15GWh facility. The planning and construction phase of the manufacturing plant will bring significant opportunities for the local economy and workforce across key industries including but not limited to the following.

Materials:

• Building materials (composite materials, concrete and masonry, thermal protection etc.) • Metal materials (frames, structural steel, roofing, doors etc.) • Electrical Systems (wiring and switch gear etc.) • Fixtures and Fittings (surface finishes, flooring, windows etc.)

http://www.im3.com.au/

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• Plumbing • Landscaping

Services:

• Interdisciplinary Engineering (Civil, Electrical, Chemical, Mechanical, Traffic, Geotechnical, Fire etc)

• Tradespeople – Electrical, Carpentry, Plumbing, Painting, Glaziers, Machinists • Labourers, machine operators, • Project Management and Development Management • Architectural, Planning, Certifiers, OH&S, QS, Legal, Community consultants, marketing,

heritage, flora + fauna, waste, valuers, ESD & Waste


Debt is being sourced through global markets in conjunction with a leading investment house. This will be in addition to debt and equity that may be provided through NAIF, CEFC, ARENA and other Govt. bodies. Whilst Australian banks will be welcomed to participate in the project funding, we envisage this will be originated and led by offshore financial syndicates subject to the market conditions at the time.

Equity will be sourced from global energy funds, private family offices and alternate equity sources.


There are many flow-on benefits that will arise from Imperium3’s capital investment into the local area with the creation of new job opportunities that will underpin eventual population inflow to Townsville.

During construction, it is estimated that more than 1,500 jobs will be required through site preparation, construction and installation for the 15GWh operation. More than 90% of these jobs are likely to be placed to tender within the domestic market.


Once the plant is at full capacity, approximately 1,000 jobs will be created which will require a combination of skilled and unskilled domestic labour. Existing local businesses will be preferred for additional contract works for ancillary services to the battery plant such as cleaning, security, maintenance and catering services.

These figures are subject to the feasibility and detailed engineering study that is underway and due for first draft version in July 2019.


The Townsville battery manufacturing facility is expected to deliver economic prosperity through a variety of channels including:

• Contribution to local economy through the construction and operation of the plant; • Direct and indirect job creation; • Being the catalyst for a larger innovation and technology precinct; • Collaboration with tertiary colleges, universities and research centres (discussed in 16); and • Co-location of business in upstream and downstream industries.

The Townsville plant operating at full capacity will stimulate new economic activity for the Townsville region and furthermore, place Australia at the forefront of a global battery revolution:

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• Forecast multi-billion annual revenue; and • The Gigafactory is expected to contribute several billion dollars in Government taxes over

the first 10 years; this excludes income tax received from its 1,000+ strong workforce.

The Battery Manufacturing plant will also help diversify power requirements and increase our energy security. In addition, it will be an enormous assistance to our ever-growing renewable energy infrastructure once implemented.

Australian manufactured iM3 LIB’s could also underpin the creation of new high technology industries in Townsville. Many such industries are likely to be defense related to bolster Australia’s national security with the advantage that most precursor materials needed for battery manufacture such as lithium, iron, manganese can all be precured within Australia. It must be highlighted that iM3 batteries need not rely upon an Asian supply chain for its production process.


Target date will be December 2019 however this may be extended into the first quarter of 2020 and subject to planning / approval constraints.


Target date will be first half of 2020.


The commercial operations date has not been finalised and as such would be inappropriate to publish.


At this stage, financiers are requesting to see investment grade offtake as well as support from local industry as opposed to only offshore groups. Investment grade offtake contracts include a combination of rated companies, government bodies and non-government bodies.

A lack of Government support, particularly at Federal and State level, is a factor that can potentially hold the project back from progressing. Delays in obtaining planning approval can be amplified due to the nature of construction particularly in the manufacturing industry.

Early financial endorsement and support from Federal Government is critical for this project to succeed and deliver economic benefit to Australia’s manufacturing industry and furthermore, North Queensland.


Townsville City Council – Contribution of land in exchange for equity.

Queensland Government – contribution of $3.1m to Feasibility Study. No further commitment post the feasibility.

Federal Government – Nil. However, iM3 is speaking with government agencies.


• Support downstream battery pack production with industry partners (e.g. Discussions with Cape Bouvard) for EV and stationary storage application to enable Investment Grade offtake for Imperium3 Batteries in Australia;

• Financial support from NAIF / CEFC / ARENA and other government agencies; • Support from agencies such as EFIC in marketing of cell products to overseas customers; and

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• Financial incentives for competitive manufacture such as energy cost rebates and tax breaks.


Education and Collaboration

Local universities and research centres will be engaged to develop and deliver tailored training programs and courses, encouraging long term career pathways for domestic residents in the Townsville region. Imperium3 endeavours to form partnerships with, but not limited to:

• Major vocational education institutes (i.e. Tafe QLD) – to deliver on-site training programs and certifications for key operator jobs to ensure the safe operation of heavy machinery and equipment. Assuming that 50-100 positions per annum will required to upskill, this may contribute an additional $1 million in TAFE revenue.

• Major Tertiary Education institutes (i.e. Universities) - aligning various courses across Business, Engineering and Research disciplines to enable the formation of educational programs and scholarships.

The battery manufacturing plant through its natural course of business, will facilitate the introduction and development of key relationships between domestic Universities and the world’s most highly regarded global research facilities, effectively creating an Australian based Lithium ion battery centre of excellence that could attract an additional $2-3 million in new funding opportunities.

Opportunity to implement extensive third-party battery cell qualification processes that can be established within local Universities to ensure that each cell and pack is aligned to customer specifications. Discussions with James Cook University and University of New South Wales have started and are ongoing. Universities and research centres will be guided by LIB industry leaders and state of the art LIB technologies to identify new research opportunities.

Innovation & Technology Precinct

More than thirty (30) strategic supply agreements have been executed with global companies to supply high-quality input materials for large scale production in iM3 consortium’s New York operation. There is an opportunity for several of these strategic suppliers to collocate their operations within the precinct to support the 15 GWh Townsville battery plant operations.

Federal, State and Local government co-operation is critical to attract multinational companies operating in both upstream and downstream industries.

Australia’s domestic downstream lithium ion battery market will be dominated by sectors that:

• Repurpose existing lithium ion batteries for different applications as their performance degrades;

• Retrofit passenger transport vehicles and heavy machinery such as forklifts and Trucks with LIB’s;

• Manufacture electric bicycles, scooters, golf carts and other small consumer transport products;

• Manufacture remote power generators and/or integrate lithium ion batteries with diesel generators to improve efficiency;

• Deliver environmentally friendly LIB alternatives to the incumbent lead acid battery; and • Demand high performance and durable energy storage solutions such as Australian Defence

Force, Government and energy security sectors.

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Imperium3 – 15 GWh Lithium Ion Battery Manufacturing Plant

Townsville, Australia has been selected as one of three strategic locations to build and operate a state-of-the-art Lithium Ion battery manufacturing facility, and Australia’s first ‘Gigafactory’.

The Gigafactory will become the central anchor of a new-century innovation and manufacturing precinct in the Townsville region; attracting several thousand jobs in both downstream and upstream industries

More than thirty (30) strategic supply agreements have been executed with global companies in both upstream and downstream industries to supply high-quality input materials; several of these global manufacturers have expressed interesting in co-locating their operations within the precinct

Imperium3’s exclusive technology will deliver the lightest, most efficient and longest life cycle lithium ion battery to the industry.

Imperium3 Batteries have been subjected to safety tests conducted by internationally recognised certification experts across various depths of discharge conditions. These tests have demonstrated superior non-flammable and low exothermic properties of the Imperium3 battery cells against eight of the global lithium ion battery manufacturers.

Imperium3 batteries are fully customisable at the cell level for end users in a variety of established and emerging industries including:

• Energy Storage Replacement; • Renewable Energy Storage solutions; and • Electric-Vehicle & Other electromobility products.

The Townsville plant operating at full capacity will stimulate new economic activity for the Townsville region and furthermore, place Australia at the forefront of a global battery revolution.

Challenges stranglehold northern Asia have on the LIB market by having a non-Asian supply chain

Northern Asia dominates the Lithium ion battery supply chain, however, Imperium3 challenges this paradigm by having a zero reliance on an Asian supply chain. Thus, solidifying our energy storage security in the future.

Imperium3 is able to deliver its batteries via a Green Manufacturing process, eliminating all toxic ingredients throughout the manufacturing process; resulting in a completely sustainable and environmentally friendly facility

Imperium3 is chaired by energy storage technology expert and former member of the US Department of Energy’s Frontier Research Centre at Binghamton University, New York, Dr. Shailesh Upreti.

Imperium3 is bolstered by a world class global Advisory Board that includes:

• Bill Moss AO, (Chairman of the Advisory Board): Well-respected and highly regarded Australian businessman and philanthropist. Bill Moss AO is the former head of Macquarie Banks Real Estate division, having spent 23 years as Senior Executive and Executive Director, financing or managing over AU$30 Billion of global real estate.

• M. Stanley Whittingham - Distinguished Professor: Professor Whittingham has over four decades of experience in the Lithium-ion battery industry and is best known for being the inventor of the Lithium-ion battery technology which twice, earned him a nomination for the Nobel Science Prize.

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Imperium3 is now calling for key stakeholders including sophisticated investors, government bodies, strategic supply partners and project financiers to support and participate in the delivery of Australia’s first large scale lithium ion battery Gigafactory

What can 15 GWh of production capacity produce?

• 250,000 Electronic Vehicle batteries per annum (up to 400kms range); or • 1,000,000 home battery units; or • Energy Storage Systems to support micro-grids for 300 small towns; or • 20,000,000 starter motor batteries; or • A combination thereof.

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6.8 Mining, Processing & Manufacturing Projects

6.8.1 Detailed Project Description: Olive Downs Coking Coal


Coking Coal project located 40km south of Moranbah in the Bowen Basin. The projects are expected to produce high quality Coking coal for steelmaking of up to 15 million tonnes per annum.

Project website:

www.pembrokeresources.com.au

Project proponents:

Pembroke Resources is an Australian-based company focused on the acquisition and development of a portfolio of high quality, metallurgical coal assets. Established in 2014 the company is backed by Denham Capital, a leading energy and resources-focused global private equity firm. To date, Denham Capital has provided Pembroke with an equity commitment of up to US$200 million.

The Pembroke Resources’ team has a proven track record in value creation in the coal industry having worked in previous successful metallurgical coal projects.


Pembroke Resources aims to create long-term value through the discovery, acquisition, development and marketing of metallurgical coal assets.

We are committed to the wellbeing of our people, the environment and the communities in which we operate and aim to grow our organisation in a responsible way.

We seek to develop lasting relationships in the local communities where we work, to make a positive contribution to the lives of people within the communities and the broader society.

To achieve our goals the company will require workforce diversity in general skills, experience and ethnicity. We will aim to be inclusive and build pride and loyalty with our people.

Pembroke Resources has considered guidelines, legislation and best practice in planning operations to minimise impact and provide a high standard of rehabilitation to achieve a safe, non-polluting, stable and sustainable landform that supports grazing and provides woodland vegetation areas.

The EIS has been prepared to fulfil the requirements of an EIS in accordance with the provisions of the SDPWO Act and the Commonwealth EPBC Act and was lodged for review and assessment on 18 May 2018.


The first Stage of the project will involve expenditure of A4450 million and target the production of 4.5m tonnes for export through Dalrymple Bay Coal Terminal


private equity and debt finance.


between 500-700.

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At full development the operational workforce is expected to be around 1000.


The mine is located in proximity to existing coal towns of Moranbah and Claremont providing long term employment opportunities.


2019


2020


2020


The project is progressing well just needs to receive the mining lease so they can start construction in 2020.


All approved.


Progressing well.

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6.8.2 Detailed Project Description: Winchester South Coking Coal Development


The Winchester South Project is located 30km south-east of Moranbah in Queensland’s Bowen Basin, a well-established coal basin. The Project will entail up to $1 billion in capital expenditure inclusive of the mining fleet and create 500 jobs during construction and 450 jobs when operating, to produce high quality metallurgical coal for export to the Asian market.

The projects involve the construction of a new open-cut coal mine, a coal processing plant and a rail loop to connect with the existing Bowen Basin coal rail network. At full capacity the mine is targeting run-of-mine (ROM) production of approximately 15 million tonnes per annum of predominantly high-quality metallurgical coal

Project website:


Project proponents:

Whitehaven Coal Limited (ASX: WHC) - Whitehaven Coal is Australia’s largest independent coal producer and the leading coal producer in North West New South Wales.

It currently operates six mines in North West NSW; five open cut mines at Maules Creek, Tarrawonga, Rocglen, Werris Creek and Sunnyside and one underground mine at Narrabri. These sites produce thermal and metallurgical coal bound primarily for export markets in North and South Asia.

Its overall workforce is more than 2,000 strong, with around 75 per cent of our employees living in the local communities around where our operations are based.


Whitehaven states that it is committed to safe, responsible and sustainable environmental management across all aspects of our operations.

It claims to be mindful of the impact of our operations on the environment and surrounding communities and undergo extensive assessments for water surface, groundwater, flood impact, flora and fauna, aboriginal cultural heritage, historical heritage, air quality, agriculture and geochemistry impacts.


The Project will entail up to $1 billion in capital expenditure inclusive of the mining fleet and create 500 jobs during construction and 450 jobs when operating, to produce high quality metallurgical coal for export to the Asian market.


Private equity and debt finance.


Approximately 500.


At full development the operational workforce is expected to be around 450.



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The mine is located in proximity to existing coal towns of Moranbah and Claremont providing long term employment opportunities.


2022


2023


2023/4


Progressing well.


Winchester South metallurgical coal project has been declared a ‘Coordinated Project’ under the State Development and Public Works Organisation Act 1971.

In Queensland, Coordinated Projects are large developments that, among other things, have strategic significance to an area of the State because of the potentially significant economic and employment benefits they bring.

Today’s declaration paves the way for whole-of-government assessment of the project by way of an environmental impact statement.


Progressing well.

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6.8.3 Detailed Project Description: Amorphous Silica Project


Location is near Greenvale, North Qld and Townsville region. The mining, processing and manufacture of Silicon Fertilisers. The amorphous silica resource covers an area of approximately 9,000 hectares to an average depth of approximately 25m and contains approximately 2.25B cubic metres.

The amorphous silica is located at or near surface and to a depth of approximately 25m

https://www.agripower.com.au/silica-silicon

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The benefits of the product are illustrated below:

Project website:


Project proponents:

Agripower Australia Limited. Agripower Australia Limited (Agripower) is an Australian company that produces a unique range of silicon fertilisers and soil amendments for use in broadacre agriculture, horticulture, viticulture, organic agriculture, amenity horticulture and lawns and turf.

Agripower owns the largest deposit of amorphous silica in the world and produces high quality silicon fertilisers, which are rich in Plant Available Silicon (PAS).

The results showed a constant increase in quality and better yields in a wide range of crops and soil types when Amorphous Silica is applied to soils. The benefits of this product are set out below


Environmental approval granted. Silicon fertilisers registered for use in organic agriculture, Australia, India, USA, and European Union


$130M spent to date. Future cost around $660M.


Capital Raisings by the company as well as project financing.


For the new project 490.


For new project 470.


Majority use of local services and trades. Multiuser benefits from transport facilities.

https://www.agripower.com.au/company-info

https://www.agripower.com.au/crop-fertilisers

https://www.agripower.com.au/turf-fertilisers

https://www.agripower.com.au/silica-silicon

https://www.agripower.com.au/plant-available-silicon

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June 2021


July 2021


December 2022


Prescribed Project status just granted by Qld Premier which will greatly assist.

Current local and federal government support: Qld government support very strong.

Federal government being approached.


Assistance with possible funding from NAIF would be highly desirable.


This will result in the Proponent operating in over 14 countries and thus would be a sound basis for expansion at Port of Townville.

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6.8.4 Detailed Project Description: Sconi Cobalt & Nickel Project Description and location:

The Sconi Cobalt-Nickel-Scandium Project is located within easy driving distance to the nearby towns of Greenvale and Charters Towers, and only 250 kilometres from the Port of Townsville in North Queensland.

Project website:

Feasibility study

http://member.afraccess.com/media?id=CMN://6A910054&filename=20181120/AUZ_02049946.pdf

Project proponents:

Australian Mines Limited (ASX:AUZ) (FRA:MJH) (OTCMKTS:AMSLF) owns the projects and specialises in exploration and development of mining projects in Australia. It is run by Benjamin Bell, a geologist and geophysicist who has 20 years’ experience in the minerals industry.



https://www.proactiveinvestors.com.au/ASX:AUZ/Australian-Mines-Ltd/

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Subject to EIS.


$1000m


Sconi Cobalt-Nickel-Scandium Project in North Queensland release of positive Bankable Feasibility Study last year and is currently progressing.

Economic modelling in BFS demonstrates construction of three open pits and a 2 million tonne per annum processing plant at Sconi would deliver long-term benefits to both Australian Mines shareholders and the regional Queensland economy.

The company is investigating a range of project funding options including a combination of off-take pre-payments, senior debt funding, royalty and/or streaming options, funding support via the Commonwealth Government’s Northern Australia Infrastructure Facility (NAIF) and mezzanine financing.

The project has secured a long-term offtake with SK Innovation for all the battery grade Cobalt that should make the project bankable.


500 jobs during its two-year construction period.

The project contemplates the construction of accommodation at Greenvale and the operation of a workforce on a drive-in, drive-out basis for approximately 80% of the operational workforce requirements, supplemented by a limited fly-in, fly-out resourcing model from Townsville to source the remaining personnel required for the Project.


300 full-time equivalent jobs for the 18-year operational period.


Minister for State Development, Manufacturing, Infrastructure and Planning Cameron Dick said the proponent, Australian Mines Limited (ASX: AUZ), had also set a strong mandate to invest in the region - $500,000 each year for training and skills development for process workers, with youth and Indigenous programs to feature. Upgrades to local Greenvale infrastructure will be made by the proponent.

This will help improve water supply, regional public roads and the Greenvale regional airport, while an accommodation village and 24/7 medical facility will also be constructed.


2019


Australian Mines’ Sconi project has been under consideration by NAIF for possible financial assistance and has progressed through the Enquiry, Preliminary Assessment, and Strategic Assessment Stages and is now in the Due Diligence Phase. The next step for Australian Mines is to provide detailed due diligence materials to NAIF for review and to then submit its formal Investment Proposal.

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Section 7 Project Proponents: Contact Details

Project Name Company Email

1 Guthalungra Prawn Farm and Municipal Wastewater Upgrades/Bioremediation Sam Bastounas Pacific Bio [email protected]

2 Pentland Bioenergy Project Tony D'Alessandro Renewable Developments Australia [email protected]

3 Great Keppel Island resort Anthony Aiossa Tower Holdings [email protected]

4 Castaways Resort + Cassowary Airport James Nevile-Smith Castaways Resort and Spa [email protected]

5 Capricorn Resort Project T. Suda Iwasaki Sangyo Co (Australia) [email protected]

6 Kidston Solar & Pumped Storage Simon Kidston Genex Power [email protected]

7 Hughenden Irrigation Scheme Shane McCarthy HIPCo [email protected]

8 Kennedy Energy Park Achim Hoehne Windlab Limited [email protected]

9 Diatromas Earth/Amorphous Silica Project Peter Prentice Agripower Australia [email protected]

10 Clarke Creek + Haughton Solar & Bunkers Hill Pumped Hydro Rachel Watson Pacific Hydro [email protected]

11 Gladstone Green Hydrogen & Amonia Plant Attilio Pigneri The Hydrogen Utility H2U [email protected]

12 Battery project in Townsville Corey Cooney Boston Global [email protected]

13 CopperString 2.0 Joseph O'Brien Visir [email protected]

14 Majors Creek Power Plant John Cole Edify [email protected]

15 Lacour Clarke Creek Wind Farm Mark Rayner Lacour [email protected]

16 Mt Fox Energy Park Justin Couper Zephyr Energy Developments [email protected]

17 Kaban Green Power Hub Garth Heron Neoen [email protected]

mailto:[email protected]

















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Future North - Smart Energy...Queensland that can harness low cost green energy to process the minerals of the future, will be in a most advantageous economic position. 4. Natural