Sydney, Australia, Jan 30, 2020 - (ABN Newswire) - Genex Power Limited (ASX:GNX.AX - News) is pleased to provide the following update on the Company's activities and performance for the second quarter of the 2020 financial year (Q2 2020), a period in which the Company continued to explore offtake arrangements for the 250MW Kidston Pumped Storage Hydro Project (K2-Hydro) and reached financial close for the 50MW Jemalong Solar Project (JSP).
Kidston 50MW Solar Project (KS1)
- Net revenue of $2.048m for the quarter.
- 24,109MWh of power generated during the period for the National Energy Market (NEM) which was 25% lower than the September quarter.
- The lower revenue and power generation in the December quarter was due to plant outage in October caused by a software issue which has since been rectified and the plant is now operating at full capacity.
- The Company announced the financial close of the Jemalong Solar Project and the associated refinancing of the 50MW Kidston Solar Project.
- Net cash position at quarter's end of $21.8m.
- The total debt funding package of $192m included a senior loan facility and a structurally subordinated HoldCo facility. The senior facility was independently verified as a Green Loan and is the first of its kind to be certified under the internationally recognised Climate Bonds Standard v3.0. The 100MWAC Portfolio Financing includes the largest Certified Green Loan by an Australian renewable energy group.
250MW Pumped Storage Hydro Project (K2-Hydro)
- The Queensland Government announced their intention to provide funding of up to $132m towards the construction of a 186km single-circuit transmission line from Kidston to Mount Fox.
- During the period, EnergyAustralia (EA) announced that they would not be in a position to reach a positive investment decision on the basis of the long term energy agreement which had previously been progressing through the due diligence and finalisation stages.
- Subsequent to the announcement from EA, Genex received support from key stakeholders in the project:
o The Northern Australian Infrastructure Facility (NAIF) approved the extension of their funding offer of up to $610m through a long term concessional NAIF debt facility to 30 June 2020; and
o Electric Power Development Co Ltd trading as J-POWER (J-POWER) signed a new Memorandum of Understanding (MOU). The MOU replaced the original document signed on 6 June 2019. The MOU, under the same terms and conditions, has been extended to 31 December 2020.
- The commitment and deadline extension from both NAIF and J-POWER recognises the quality of K2-Hydro and their continued commitment to its development which importantly allows Genex time to re-negotiate and finalise the energy offtake arrangements for the project.
Jemalong 50MW Solar Project (JSP)
- The Company announced that it had reached financial close for the 50MW Jemalong Solar Project in New South Wales.
- The Company successfully executed an Engineering, Procurement and Construction (EPC) Contract and Operation & Maintenance (O&M) Contract with Beon Energy Solutions for JSP.
- Construction activities are underway.
- Operational commencement and first revenues are on track for late Q4 CY2020.
- When fully operational JSP will produce up to 129,450MWh per year, providing enough energy to power more than 23,000 Australian homes with renewable energy.
Commenting on Q2 FY20, Genex CEO, James Harding stated:
"Whilst the K2-Hydro project advanced on many fronts during calendar year 2019, it was unfortunate that our potential offtake partner, EnergyAustralia, informed Genex during the quarter that they would not be in a position to reach a positive investment decision on the basis of the long term energy agreement outlined in the original term sheet. Despite the setback, all the key stakeholders in the project, including NAIF, Queensland Government, J-POWER and EnergyAustralia have confirmed their continuing support through the restructuring of their commitments to the project.
We would like to thank all the project stakeholders for their ongoing support of the project.
I would like to state that the delay in securing offtake for the project is not a reflection on the importance or economic viability of the project. The project remains an outstanding opportunity for energy storage, has an operating life in excess of 80 years and consequently provides an energy storage solution for multiple generations. We continue to be actively engaged with EnergyAustralia to secure a revised offtake arrangement that recognises the long term renewable energy benefits of the K2-Hydro project for Queensland.
The Company's refinance of the Kidston Solar One project and financing for the construction of the Jemalong Solar Project through a combined $192m senior loan facility was a significant achievement in the quarter. The 100MW portfolio financing is the largest Certified Green Loan by an Australian renewable energy group, highlighting the quality of the underlying projects as well as the Company's clean energy credentials.
The financial close and commencement of construction at the Jemalong Solar Project represents the next step in the Company's growth and our aim of becoming a diversified clean energy company".
Genex is in a strong position to deliver on our growth ambitions. Our projects are positioned to deliver clean, renewable power that will help Australia meet its renewable energy targets. The increasing impact of intermittent power on energy prices highlights the need for large scale storage options such as K2-Hydro. Over the coming quarter, the Company will continue to focus on the development of its projects. Key outlook areas are:
- KS1: focus on steady state operation and improve overall plant performance.
- K2-Hydro: continue to explore offtake options and progress the project towards financial close; and
- JSP: mobilise the workforce and continue construction efforts.
To view the quarterly cash flow, please visit:
About Genex Power Ltd:
Genex Power Limited (ASX:GNX.AX - News) is a power generation development company listed on the ASX. The Company is focused on innovative clean energy generation and electricity storage solutions which deliver attractive commercial returns for shareholders. The Company has a development pipeline of up to 770MW of renewable energy generation and storage projects within its portfolio, underpinned by the Kidston Renewable Energy Hub in far-north Queensland (Kidston Hub). The Kidston Hub is comprised of the operating 50MW Stage 1 Solar Project (KS1), the 250MW Pumped Storage Hydro Project (K2-Hydro) and the multi-staged integrated Solar Project of up to 270MW (K2-Solar) under development and the Kidston Stage 3 Wind Project of up to 150MW under feasibility. In addition, the Company has acquired the 50MW Jemalong Solar Project (JSP), located near Forbes in NSW, which is also under development.
Genex continues to acknowledge the support from the Federal Government, through the Australian Renewable Energy Agency (ARENA), which provided $8.9 million in funding to support the construction of the KS1 Project, in addition to their support of up to $9 million in funding to support the development of the stage 2 projects. Genex also acknowledges the support of the Queensland State Government through providing a 20-year revenue support deed and designating the Hub as 'Critical Infrastructure' to the State.
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Genex Power Ltd
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