AUSTRALIA — Gamuda Bhd and Ferrovial Construction have signed an Early Contractor Involvement (ECI) agreement with Alinta Energy for the multi-billion-dollar Oven Mountain Pumped Hydro Storage project in New South Wales.

This significant development marks a crucial step forward for one of the country’s most ambitious renewable energy initiatives.

The Oven Mountain project, located within the New England Renewable Energy Zone, is set to become a cornerstone of Australia’s transition to renewable energy.

With a planned capacity of 900 megawatts and the ability to provide up to eight hours of dispatchable energy at full generation, the facility will play a vital role in supporting the growing integration of wind and solar power into the national grid.

The “off-river” pumped hydro energy storage development will be situated adjacent to the Macleay River between Armidale and Kempsey.

Alinta Energy, one of Australia’s largest energy companies, is spearheading the project, which is expected to have significant economic benefits for the region.

Key project highlights include:

• Injection of over $40 million into the regional economy
• Creation of up to 800 jobs during construction
• Generation of approximately 95 direct and indirect jobs once operational

The Gamuda-Ferrovial joint venture (GFJV) was selected for the ECI phase due to the combined expertise of both companies in large-scale, complex infrastructure projects.

Ken Woolley, Alinta Energy’s Executive Director of Merchant Energy, emphasised the importance of this partnership, stating: “Gamuda and Ferrovial have proven expertise in tunnelling, hydro and geo-tech, which makes this JV the perfect partner to deliver the most advanced pumped hydro project in NSW.”

The ECI phase, expected to last about six months, will focus on advancing the project’s design and constructability.

It will leverage Gamuda’s tunnelling and civil engineering experience alongside Ferrovial’s proven track record in hydro and dam projects.

This agreement positions the GFJV favourably for potentially securing the engineering, procurement, construction, and commissioning (EPCC) contract for the project.

Industry analysts suggest that the EPCC works could commence as early as the fourth quarter of 2025, subject to final approvals.

The Oven Mountain Pumped Hydro Storage project represents a significant step in Australia’s renewable energy landscape.

As the country moves towards a more sustainable energy future, projects like this will be crucial in providing the long-duration storage needed to support a high-renewable grid.