GENEX POWER LIMITED 
EnergyAustralia (EA) has signed a Binding Energy Storage Services Agreement (ESSA) for the Kidston Hydro Project. The binding agreement significantly de-risks the development of the K2-Hydro Project. The key terms of the ESSA are:
- A term of up to 30 years with an initial 10 year period and two options (at EA's election) to extend for a further ten years each;
- Genex will provide full operational dispatch rights to EA in exchange for a fixed rental annual rental payment, escalating over the total term;
- Following the expiry of the full 30 year term, EA have the right to acquire Genex's shareholding in the K2-Hydro project for a fixed cash payment; and
- The ESSA is subject to a number of conditions precedent, including financial close, which must be satisfied prior to closure sunset date of 31 December 2020.
The signing of the ESSA reflects a significant step towards achieving financial close of the Kidston Hydro Project.
K2 -Hydro - Status of Counterparties
Energy offtake
- Energy Storage Services Agreement signed with EnergyAustralia.
Genex equity investor
- MOU signed for equity investment in Genex Power.
EPC Contractor/supplier of pump turbines
- Binding EPC Contract ready to execute, Early Works Stage 1 completed, pricing to be revalidated in April 2020.
Federal Government
Sole lender providing up to $610 million of long long-term, concessional debt.
- Final Board Investment Decision granted, preparing to resubmit based on revised offtake arrangement.
Federal Government Grant Body
- Discussions being finalised.
Queensland Government
Construct and operate 275kV transmission line from Kidston to Mt Fox.
- Offer to Connect submitted, GPS approved, pricing being revalidated.
Treasury/DNRME
- co -funding of Transmission line
- Discussions well advanced, to be concluded as a priority.
Kidston: Benefits to Northern Queensland - support local businesses
First pumped storage hydro project in Australia for 40 years:
- Third largest pumped storage in Australia; and
- Global first in repurposing of an abandoned mine.
Critical contribution to grid stabilisation in North Queensland.
Shovel ready project - construction anticipated to start 2020, operational in 2024.
500+ direct construction jobs:
- Unlocking additional solar and wind, with another 500+ jobs in the same timeframe.
Strong local economic benefits:
- Local employment in Kidston, Einasleigh and surrounding area;
- Support local businesses; and
- Townsville: base for FIFO, port gateway for imported equipment.
50MW Jemalong Solar Project
Located 26km south south-west of Forbes, NSW.
50MW Jemalong Solar Project
Provides geographic diversity in GNX portfolio.
128,700MWh per annum forecast (P50).
Construction underway: Beon Energy Solutions EPC and O&M.
Project has a capacity factor of 29%.
30 year project lifespan.
Approximately 150,000 Jinko solar panels.
Expected to generate enough energy to power up to 23,000 homes.
Potential to deliver a step change in revenue by Q4 CY2020.
To view the presentation, please visit:
https://abnnewswire.net/lnk/901MAW4Y
About Genex Power Ltd:
Genex Power Limited (ASX:GNX) is a power generation development company listed on the ASX. The Company is focused on innovative clean energy generation and electricity storage solutions which deliver attractive commercial returns for shareholders. The Company has a development pipeline of up to 770MW of renewable energy generation and storage projects within its portfolio, underpinned by the Kidston Renewable Energy Hub in far-north Queensland (Kidston Hub). The Kidston Hub is comprised of the operating 50MW Stage 1 Solar Project (KS1), the 250MW Pumped Storage Hydro Project (K2-Hydro) and the multi-staged integrated Solar Project of up to 270MW (K2-Solar) under development and the Kidston Stage 3 Wind Project of up to 150MW under feasibility. In addition, the Company has acquired the 50MW Jemalong Solar Project (JSP), located near Forbes in NSW, which is also under development.
Genex continues to acknowledge the support from the Federal Government, through the Australian Renewable Energy Agency (ARENA), which provided $8.9 million in funding to support the construction of the KS1 Project, in addition to their support of up to $9 million in funding to support the development of the stage 2 projects. Genex also acknowledges the support of the Queensland State Government through providing a 20-year revenue support deed and designating the Hub as 'Critical Infrastructure' to the State.
Source:
Genex Power Ltd
Contact:
Simon Kidston Executive Director Tel: +61 2 9048 8852 Email: sk@genexpower.com.au
