- Genex Power (ASX:GNX) enters into a 15-year PPA with Stanwell Corporation for the 258MW K3W
- Stanwell will off-take 50 per cent of K3W’s wind energy output and large-scale generation certificates at a fixed price for 15 years
- The agreement with Stanwell positions Genex and J-POWER to initiate the debt financing process for K3W
- GNX shares last traded at 17.3 cents
Genex Power (ASX:GNX), through its subsidiary K3W Project Co, has entered into a 15-year power purchase agreement (PPA) with Stanwell Corporation for the 258MW Kidston Stage 3 Wind Project (K3W).
This agreement, combined with a previous PPA with EnergyAustralia, positions Genex and J-POWER to begin the debt financing process for K3W, aiming for a final investment decision in 2024.
Stanwell, a publicly owned energy company, will purchase 50 per cent of K3W’s wind energy output and large-scale generation certificates at a fixed price for 15 years, with annual increases based on the consumer price index and a cap.
This agreement, along with the previous PPA with EnergyAustralia, secures off-take for 80 per cent of the project’s output, facilitating significant debt financing for construction.
“Securing Stanwell as the majority off-taker for the project, a highly reputable entity, underscores the appeal of the generation profile of the project and Genex’s track record in successful delivery of large and complex renewable energy and storage projects,” Genex CEO Craig Francis said.
With this agreement in place, K3W becomes the next phase of the Kidston Clean Energy Hub, utilising the existing transmission line and network infrastructure built for the 250MW Kidston Pumped Storage Hydro Project.
As a result, Genex will prioritise the development of K3W and not the proposed 270MW Kidston Stage Two Solar Project.
Genex has maintained its 50MW Stage 1 Solar Farm at Kidston since 2017.
GNX shares last traded at 17.3 cents.