Kidston Pumped Storage Hydro - Project Update
Sydney, Nov 1, 2019 AEST (ABN Newswire) - Genex Power Limited (
ASX:GNX) wishes to provide the following update on the Kidston Pumped Storage Hydro project (K2-Hydro or Project).
Since the entry into a term sheet with EnergyAustralia Pty Ltd (EA) in December 2018 for a long term energy agreement and equity investment in the Project (the Term Sheet) (refer ASX announcement 20 December 2018), Genex has been working closely with EA to conclude due diligence and finalise the terms of the transaction. This has included working with various counterparties including financiers, EPC contractors and the Queensland Government, with the following major milestones achieved in 2019:
- Signed $25m share subscription agreement with J-POWER for Genex's equity requirement for the Project (refer ASX announcement 6 June 2019);
- Received AEMO GPS Approval for the Project (refer ASX Announcement 14 June 2019);
- Received NAIF approval of a $610m concessional loan for the Project (refer ASX announcement 11 July 2019); and
- Announcement by the Queensland Government of a funding package for a new transmission line for the Project (refer ASX announcement 4 September 2019).
As part of its final approval processes, which were targeting a final investment decision in CY 2019, EA has today advised Genex that it will not be in a position to reach a positive investment decision on the basis of the long term energy agreement structure as outlined in the Term Sheet. In light of this development, Genex wishes to advise that it no longer anticipates that it will reach financial close on the Project in CY 2019.
Accordingly, Genex anticipates that the NAIF concessional loan offer and the J-POWER share subscription agreement will both lapse at or prior to 31 December 2019 (unless extended). Genex will continue to work with EA and its other financiers and counterparties, including NAIF and J-POWER, to restructure the financing for the transaction to ensure a positive investment decision can be reached and financial close can be achieved. This is now anticipated to occur in 2020.
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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