- Genex Power (GNX) has provided an update on development and financing activities for the Kidston Pumped Storage Hydro Project
- Final due diligence for project financing is mostly completed, with key stakeholders substantially agreeing to related documentation
- The financing’s contractual close should occur late in 2021’s first quarter, with project construction starting early in the second quarter
- Due to the revised transaction timetable, Genex has secured a sunset date extension on its Energy Storage Services Agreement with EnergyAustralia
- Genex Power is up 2.04 per cent and trading at 25 cents per share
Genex Power (GNX) has provided an update on development and financing activities for the Kidston Pumped Storage Hydro Project.
In November 2020, the power generation development company agreed to develop the Kidston stage three wind project with Japanese hydroelectrical and wind power provider, J-POWER. The wind project also included a 250-megawatt hydro pumped storage project and 270-megawatt solar project.
Since Genex’s Board made a positive final investment decision in December 2020, the company has been working to progress the hydro project’s financing workstreams towards conclusion.
Final due diligence for this has now mostly completed, with key stakeholders substantially agreeing to construction, financing, and operational documentation.
However, the company has reported that the transaction timetable has been pushed back a little. Now, the financing’s contractual close should occur late in the first quarter of the 2021 calendar, year, with the financial close taking place early in the second quarter.
As such, the commencement of project construction should begin sometime early in the second quarter of the 2021 calendar year.
In light of this revised transaction timetable, Genex has secured an extension on the company’s Energy Storage Services Agreement (ESSA) with EnergyAustralia. The company achieved this by signing a Second ESSA Amendment Deed.
Genex is also in discussions with J-POWER regarding an extension of sunset dates for the share subscription agreement (SSA) and technical services agreement (TSA) between them.
Genex Power’s CEO, James Harding, commented on the company’s progress with the project.
“We have now reached a critical point where all due diligence has been largely completed and our construction, financing, and operational documentation is in substantially agreed form,” he said.
“As such, we are pleased that we have today secured the necessary extension from EnergyAustralia to align with our revised timeline for contractual close this quarter, and commencement of construction early next quarter,” he added.
James went on to thank EnergyAustralia, the Northern Australia Infrastructure Facility, the Queensland State Government, and the Australian Renewable Energy Agency for their ongoing support.
Genex Power is up 2.04 per cent, trading at 25 cents per share at 11:40 am AEDT.