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- Genex Power (GNX) has finalised negotiations with Powerlink Queensland to construct a transmission power line from the Kidston Hydro Project
- The arrangement with government-backed utility operation Powerlink has essentially culminated with a special purpose vehicle designed to own and operate the project
- It’s tipped to bring in $111 million worth of further funding, topping up the previously awarded $147 million from the Queensland government in early February
- The funds are set to fuel construction of the 275-kilovolt single circuit, 185.9-kilometre transmission line from Kidston to Mt Fox, and a new substation at Mt Fox
- Genex is up a steady 5.66 per cent on the market, trading at 28 cents per share
Genex Power (GNX) has finalised negotiations with Powerlink Queensland to construct a transmission power line from the Kidston Hydro Project.
The arrangement with government-backed utilities operator Power Link Queensland resulted in the execution of the Generator Connection and Access Agreement (GCAA) for the construction of GNX’s 250-megawatt Kidston Pumped Storage Hydro Project.
The end result essentially culminates in the creation of a special purpose vehicle incorporated to own and operate the project.
As such, the GCAA is set to provide $258 million in construction funding for the connection assets, of which $111 million will come from the special purpose vehicle and the remaining $147 million from the Queensland government.
The funds are set to fuel the construction of the 275-kilovolt single circuit, 185.9-kilometre transmission line from Kidston to Mt Fox, and a new substation at Mt Fox, which has been on the cards for some four years.
Further to this arrangement for K2-Hydro, the Connection assets will have spare capacity for other generation projects, including the Kidston stage three Wind Project and Kidston stage two Solar Project.
Genex CEO James Harding said he was delighted to have executed the agreement.
“This marks the culmination of a process of close cooperation and deep engagement which commenced four years ago, and which has resulted in an innovative commercial arrangement,” he commented.
Genex is up a steady 5.66 per cent on the market, trading at 28 cents per share at 1:33 pm AEDT.
