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QLD Govt. confirms $147M funding for Genex Power’s (ASX:GNX) transmission line

Energy
ASX:GNX      MCAP $367.0M
05 February 2021 11:00 (AEST)
Genex Power (GNX) - CEO, James Harding (left)

Source: Townsville Bulletin

The Queensland Government has confirmed it will provide Genex Power (GNX) with $147 million in funding.

The money will go towards constructing a new 275 kilovolt single circuit, 185.9-kilometre transmission line from Kidston to Mt Fox, and a new substation at Mt Fox.

This infrastructure is crucial in connecting the Kidston Pumped Storage Hydro Project to the National Electricity Market which comprises five regions on Australia’s east coast.

“Genex is delighted to receive confirmation of the Queensland Government’s $147 million funding package for this critical transmission infrastructure,” Genex CEO James Harding said.

Importantly, the $147 million represents a $15 million increase from the original amount announced in September last year.

The construction of the transmission line will create over 400 jobs and the infrastructure will be built, owned and operated by Powerlink Queensland.

“We would like to thank the Queensland Government for their support and look forward to continuing to work together to deliver this exciting new piece of electricity infrastructure which, together with the pumped hydro project, will deliver over 500 new jobs, contribute to a more stable electricity supply in North Queensland and assist Queensland in moving toward its 50 per cent renewable energy target by 2030,” James said.

The transmission line will support connectivity to the NEM, but will also facilitate the creation of a new renewable energy zone in north Queensland. Renewable energy zones are essentially modern-day power stations that combine and deliver renewable energy to homes and businesses.

Furthermore, the transmission line will support the development of the Kidston Clean Energy Hub. This includes the potential connection of the Kidston Stage 3 Wind Project and Stage 2 Solar Project.

Genex Power is up 5.56 per cent and shares are trading at 28.5 cents at 10:48 am AEDT.

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