Approval has been granted for what could be Australia’s first pumped hydro project in 40 years.

Genex has secured a revised off-take agreement with utility EnergyAustralia for the 2,000MWh Kidston storage project.

The Kidston project is located in an old gold mine, and features 250MW of capacity with eight hours of storage.

With a new deal in place, the pumped hydro project is now considered strongly likely to go ahead.

“Pumped hydro is the perfect technology to complement solar energy, with its ability to store excess power in the middle of the day and then generate in the mornings and evenings when our customers need it,” EnergyAustralia has quoted markets executive Ross Edwards as having said.

“We thank the community, our counterparts and anyone who has actively followed this project for their patience and support while we work through the specifics,” the company said in a statement.

“It’s important that we continue to invest in the transition to a cleaner energy future through these challenging times to provide much-needed jobs and economic activity.”

Details of the deal are accessible here.