Executes Supply Agreement with Tesla for Bouldercombe
Sydney, Oct 1, 2021 AEST (ABN Newswire) - Genex Power Limited (
ASX:GNX) is pleased to announce that it has executed a Supply Agreement (Supply Agreement) with Tesla Motors Australia Pty Ltd (Tesla) for the Bouldercombe Battery Project (BBP or the Project). Execution of the Supply Agreement with Tesla represents a major milestone for the BBP which will support the Company in rapidly progressing the Project to financial close.
TESLA SUPPLY CONTRACT
Following the completion of a tender process, in August 2020 the Company selected Tesla as its preferred battery supplier and integrator on the basis of their strong technical and commercial offering, their extensive experience in the Australian energy storage market and the market leading Autobidder market dispatch technology.
Following today's announcement, the Project is confirmed to be developed using Tesla's Megapack lithium-ion battery technology which has a product lifespan and warranty of 20 years. Megapack is an all-in-one utility-scale energy storage system optimised for cost and performance, with each Megapack fully assembled, factory tested and shipped from Tesla's Gigafactory in Nevada, USA.
The 50MW/100MWh battery will comprise of 40 Megapacks and will be fully operational in the first half of CY2023.
TIMELINE
Genex is working closely with its stakeholders to conclude the outstanding workstreams to take the BBP to a Final Investment Decision (FID) and financial close in the coming months. These include:
- Grid Connection: Genex and its grid connection consultants have been working closely with Tesla in recent months to complete the grid connection process with Powerlink Queensland. The grid modelling pack was finalised and submitted to Powerlink in Q3 CY2021, and Genex expects to receive the Offer to Connect in Q4 CY2021.
Offtake: Genex is in advanced negotiations with an offtake partner and is looking to conclude its offtake arrangements, concurrent with project financing activities, in the coming months; and
- Project Financing: Genex is working with its preferred lenders to the Project to finalise due diligence and loan facility documentation in line with the timeline for financial close.
On the basis of the above, financial close is expected to occur in Q4 CY2021 or early Q1 CY2022.
Commenting on the announcement, Genex CEO, James Harding stated:
"Genex is pleased to have executed the supply agreement with Tesla for the Bouldercombe Battery Project. This is a key milestone in the Project's development and one the Company has been working towards since Tesla's appointment as the preferred supplier and integrator in 2020. The Project is Genex's first large-scale Battery Energy Storage System and is part of our Como strategy to broaden our footprint in energy storage.
The Bouldercombe Battery Project is set to be one of the first standalone large-scale Battery Energy Storage Systems in Queensland. The Project is to be constructed adjacent to Powerlink's Bouldercombe substation, having received development approval from Rockhampton Regional Council in May 2021. Negotiations with Powerlink on the connection terms are well advanced, and we expect to receive an Offer to Connect within the next couple of months, which should enable us to proceed to FID and financial close in Q4 CY2021/Q1 CY2022.
The development of our Battery Storage strategy in conjunction with our pumped hydro project and operating solar energy assets further positions Genex as the leading Australian renewable energy and storage company."
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About Genex Power Ltd
Genex Power Limited (ASX:GNX) is focused on developing a portfolio of renewable energy generation and storage projects across Australia. The Company's flagship Kidston Clean Energy Hub, located in north Queensland, will integrate large-scale solar generation with pumped storage hydro. The Kidston Clean Energy Hub is comprised of the operating 50MW stage 1 Solar Project (KS1) and the 250MW Kidston Pumped Storage Hydro Project (K2-Hydro) with potential for further multi-stage wind and solar projects. The 50MW Jemalong Solar Project (JSP) is located in NSW and provides geographical diversification to the Genex Power Limited portfolio. JSP was energised in early December 2020 and commissioning is now underway. Genex is further developing its energy storage portfolio via the early stage development of a 50MW/75MWh standalone battery energy storage system at Bouldercombe in Queensland. With over 400MW of renewable energy and storage projects in development, Genex is well placed as Australia's leading renewable energy and storage company.
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