Commencement of Queensland Government Financial Support Deed
Genex Power Limited (ASX: GNX) (Genex or Company) is pleased to advise that on 31 July 2018, the Queensland Government Solar 150 Financial Support Deed commenced in relation to the 50MW Kidston Solar Project (KS1 or Project).
In accordance with the terms initially announced to the ASX on 8 September 2016 which stated, in part:
“…Genex … has secured Queensland Government Financial Support for 100% of the energy that will be produced from the Solar Project via a long-term price guarantee arrangement (akin to what is known in the industry as a Power Purchase Agreement or PPA). Pursuant to the terms of the Solar 150 Financial Support Deed, Large-scale Generation Certificates (LGC’s) will be surrendered to the State…”
Under the Support Deed, Genex now has guaranteed revenue for the next 20 years to July 2038. With the commencement of the Support Deed, Genex will now report revenue on a quarterly basis.
GENEX RECEIVES INDICATIVE TERM SHEET FROM THE NORTHERN AUSTRALIA INFRASTRUCTURE FACILITY FOR UP TO $516 MILLION OF CONCESSIONAL DEBT FUNDING FOR THE KIDSTON STAGE 2 PROJECT
Genex Power Limited (ASX: GNX) (Genex or Company) is pleased to announce that the Northern Australia Infrastructure Facility (NAIF) Board has expressed its support for the development of the financing structure for Genex’s Kidston Stage 2 project (the Project) through the provision of an indicative term sheet for a long-term concessional NAIF debt facility for up to $516 million (Term Sheet).
The NAIF Term Sheet provides for a secured, long tenor subordinated loan of up to $516 million to the Project, and is subject to a number of conditions and customary terms for a project financing term sheet, including the following:
Each of these conditions, including key project elements which need to be further developed, will need to be satisfied and due diligence completed prior to the NAIF Board making an Investment Decision. The Company is continuing to progress each of the Term Sheet conditions alongside its other Project workstreams with the objective of reaching financial close by the end of CY2018. Genex looks forward to providing further progress updates to the market as each of these milestones are achieved.
In commenting on today’s announcement, James Harding, CEO of Genex said:
“Genex is very pleased to work with NAIF in the development of the Kidston Stage 2 Project. The issuance of the Term Sheet and NAIF’s support to negotiate the detailed terms of a long tenor, concessional loan which would secure the bulk of the Project debt funding, is a significant milestone in the development of the Project.
We wish to thank NAIF for their strong support and look forward to working with them over the coming months as we move towards achieving financial close in the latter half of the year.”
Ms Laurie Walker, CEO of NAIF, also commenting on today’s announcement said:
“NAIF’s indication of this support will assist Genex to advance its discussions with other Project counterparties and to prove up the Project fundamentals. This is a demonstration of how NAIF can work with stakeholders to help them understand how its concessional financing can support the development of a project which has the potential to provide substantial benefits to Northern Australia.
NAIF sees the Project as important for the transition of the market to lower emission renewable energy sources, and the Board’s preparedness to consider a capital commitment of the size referred to in this announcement reflects the alignment of this type of project with NAIF’s objective to contribute to the transformation of Northern Australia through infrastructure development.”
AS STAGE 3 OF THE KIDSTON RENEWABLE ENERGY HUB GENEX SECURES EXCLUSIVE OPTION TO DEVELOP NEW WIND PROJECT
Genex Power Limited (ASX: GNX) (Genex or Company) is pleased to announce the signing of a binding heads of agreement with local landholders with the exclusive option for Genex to develop a new wind farm project (K3-Wind or the Project) comprising Stage 3 of the Company’s Kidston Renewable Energy Hub in North Queensland.
The Company believes that the Project will benefit from naturally elevated topography, along an escarpment of approximately 21km in length. Genex estimates that the Project area has the potential to be developed into a wind farm up to 150MW. Subject to completion of a feasibility study including transmission requirements and capabilities, it is envisaged that the Project will connect into the National Electricity Market (NEM) via the proposed new 275kV transmission line at Kidston to be developed as part of the Kidston Stage 2 projects.
The K3-Wind Project represents Genex’s fourth project in its development pipeline, with the Renewable Energy Hub now potentially comprising:
The proposed K3-Wind Project could not only provide Genex with significant additional generation capacity for dispatch into the NEM, but in combination with the existing Stage 1 solar and planned Stage 2 solar and hydro projects, provide inversely correlated generation which could enable the dispatch of firm clean renewable electricity 24 hours a day, 7 days a week. A projected generation profile from the Kidston Renewable Energy Hub incorporating K3-Wind, is provided in the chart below.
GENEX SECURES DEVELOPMENT APPROVAL FOR KIDSTON STAGE 2 SOLAR
AND MOVES TOWARDS FINANCIAL CLOSE
Genex Power Limited (ASX: GNX) (Genex or Company) is pleased to provide shareholders with an update in relation to the development of the Company’s Kidston Stage 2 (K2) projects, comprising the Pumped Storage Hydro (K2-Hydro) project and the Stage 2 Solar (K2-Solar) project, at the Kidston Renewable Energy Hub in North Queensland.
K2-Solar Development Approval
Genex is pleased to advise that it has received Development Approval (DA) from the Etheridge Shire Council in respect of the K2-Solar project. The DA is for a maximum of 270MW but Genex has the potential to build K2-Solar in stages to match energy offtake and energy transfer capabilities. This represents a significant milestone for the K2 projects. As with KS1, K2-Solar will benefit from being located within the highest solar radiation zone in Australia.
Early Contractor Involvement (ECI) process
Genex continues to advance the ECI process toward agreeing full fixed price Engineering, Procurement and Construction (EPC) wrap contracts with UGL for K2-Solar and with McConnell Dowell/John Holland Joint Venture (JV) for K2-Hydro. EPC contracts are expected to be finalised by the end of June.
As part of the ECI process for K2-Hydro, the JV has selected ANDRITZ, an international tier-one supplier and global leader in hydraulic power generation, as the preferred electromechanical equipment supplier (including the reversible Francis pump-turbines). The JV, together with ANDRITZ, has continued to optimise the design for K2-Hydro as the EPC contracts are finalised, with a selection of 3D images of the optimised design detailed below
© 2000 - 2018 HotCopper. All Rights Reserved.