CopperString to create renewable energy and hydrogen powerhouse

The cost of a potentially game-changing transmission line project between Townsville and Mount Isa has been assessed at $2.5bn.

The cost of a potentially game-changing transmission line project between Townsville and Mount Isa has been assessed at $2.5bn — $800m more than quoted last year.

But its proponents, private company CuString Pty Ltd, have rejected suggestions of a cost blowout, saying they have been able to contain cost increases and that previously quoted figures were for construction only and not total project costs.

CuString is proposing to construct an 1000km transmission line between Townsville and Mount Isa to connect the North West Minerals Province to the national electricity grid.

They say the scheme can reduce the cost of electricity for large customers like mining companies to around $90 per megawatt hour from $140 at present.

This has been supported by state government analysis released last month in a report assessing the electricity supply options for the North West.

L to R, Joseph OÕBrien, Director, CuString Pty Ltd with John OÕBrien, Founder and Chairman, CuString Pty Ltd, they are putting together the biggest powerline in Queensland's history, that would open up a massive swath of far north Queensland, on Wednesday November 11th, 2020 -Photo Steve Pohlner

CuString also contends the project can play a critical role in developing the Townsville to

Mount Isa corridor into a renewable energy and hydrogen export powerhouse.

CuString managing director Joseph O’Brien said they had always talked about an underlying construction cost for the project of about $1.7bn to $1.8bn but he acknowledged there was “upward pressure” on construction costs.

He said they had been able to “bake in” labour and materials cost increases which had occurred over the past year through early contractor involvement and market-based costing.

“CopperString’s entire 1000 km transmission network development will involve a $2.5 billion investment program which also includes commissioning, financing costs such as interest during construction, and development costs, environmental and easement acquisition-related costs, contingency amounts, insurance, and an Engineering Procurement & Construction contract of approximately $1.8 billion,” Mr O’Brien said.

“Through the (Early Contractor Involvement) process we have been able to find valuable optimisations to standard approaches including tower and foundation design which has been a benefit of the heavy investment we’ve made in engineering at the front end of project development.”

Mr O’Brien said the reality was that interest rates and construction costs were likely to increase over coming years so there was a very important opportunity now to lock in major infrastructure projects at historically low interest rates.

He said the benefits of this would flow through the economy for decades to come.

CuString is looking to begin construction this year and for the transmission network to be operating from 2025.

Originally published as CopperString to create renewable energy and hydrogen powerhouse