Aug 3 (Reuters) - Australia's Genex Power Ltd said
on Monday that Japan's J-Power would invest as much as
A$25 million ($17.8 million), finalising a deal that secures
funding for Genex's equity component of the Kidston pumped hydro
The deal, which had to be renegotiated after delays last
year, helps puts the project back on track, and shares in Genex
were up 6% on the news.
In March this year, Genex also lined up Energy Australia to
buy power from the project, after a failing to reach a similar
deal last year.
J-Power will gain between 15% and 19.99% of Genex's enlarged
share capital under deal. It will also be able to nominate a
director to Genex's board and will provide certain technical
services in the operational stages of the project.
Pumped hydro acts like a giant battery, pumping water uphill
when energy is abundant and releasing it to create power at
night or on a windless day.
Genex's 250 megawatt project, which is being built at an
abandoned gold mine in the state of Queensland, is widely seen
as a template for projects that could be developed all over
Australia at old dams and mine sites.
($1 = 1.4011 Australian dollars)
(Reporting by Arundhati Dutta in Bengaluru; Editing by Edwina