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Genex Power has welcomed a $147 million State Government pledge that will see its Kidston Pumped Storage Hydro Project hooked up to the national grid.

The transmission line for the North Queensland power project is expected to support more than 400 new jobs during its construction.

It will be built, owned and operated by Powerlink Queensland.

The funding package announced today represents a $15 million increase to the original $132 million the government agreed to provide towards construction of transmission infrastructure.

It will go towards construction of a new 185.9km transmission line from the Kidston power hub to Mount Fox, and a new substation at Mount Fox.

Genex says the transmission line will not only enable the connection of the project to the National Electricity Market but, with significant spare capacity, will facilitate the creation of a new Renewable Energy Zone in North Queensland.

The new transmission infrastructure will also underpin the development of the Kidston Clean Energy Hub, including the potential connection of the Kidston Stage 3 Wind Project and Stage 2 Solar Project.

“This funding is a crucial piece for the overall project financing for the project, which is rapidly advancing toward financial close,” Genex chief executive officer James Harding said.

A Powerlink spokeswoman said details on activities such as construction schedules for the transmission infrastructure would be finalised once Genex reached financial close on the project.

“A key focus will be to continue our engagement with landholders and the wider community,” she said.

Genex Power recently initiated the early works program for the hydro project, based at the former Kidston gold mine, including upgrading the airstrip and boosting camp accommodation.

It came after the Northern Australia Infrastructure Facility (NAIF) Board confirmed it would provide a concessional loan of up to $610 million.