Genex Power Ltd Stock Market Press Releases and Company Profile
Genex signs Binding ESSA with EnergyAustralia for Hydro
Genex signs Binding ESSA with EnergyAustralia for Hydro

Sydney, Mar 30, 2020 AEST (ABN Newswire) - Genex Power Limited (googlechartASX:GNX) is pleased to announce that it has today finalised its offtake arrangements for the 250MW Kidston Pumped Storage Hydro Project (K2-Hydro or the Project) with the signing of a binding Energy Storage Services Agreement (ESSA) with EnergyAustralia Pty Ltd (EnergyAustralia). A summary of the key terms of the ESSA is below:

- A term of up to 30 years, with an initial term of 10 years and two options (at EnergyAustralia's election) to extend for a further 10 years each (Extension Options);

- Genex will provide the full operational dispatch rights for the K2-Hydro plant (including P&L responsibility) to EnergyAustralia in exchange for a fixed annual rental payment, escalating over the total term;

- Following the expiry of the full 30-year term and therefore conditional on the exercise of the Extension Options, EnergyAustralia shall have the right to acquire Genex's shareholding in the Project for a fixed cash payment; and

- The ESSA is subject to a number of conditions precedent, including achieving financial close for the Project, which must be satisfied prior to the financial close sunset date of 31 December 2020.

Genex remains deeply engaged with the other Project stakeholders, including the Northern Australia Infrastructure Facility (NAIF) to complete the restructuring of the project financing on the basis of the agreed terms of the ESSA. Following today's announcement, and subject to agreeing suitable terms with NAIF and Queensland Government, Genex is now seeking to reach financial close on the Project in the third quarter of the 2020 calendar year. The Company will continue to keep the market informed of developments in relation to this timetable as appropriate.

Commenting on today's announcement, Genex CEO, James Harding stated:

"Since November 2019, Genex has been actively working with all of its project stakeholders, including EnergyAustralia, NAIF and the Queensland Government, to complete the restructuring of the project financing for K2-Hydro and progress to financial close as quickly as possible.

We have been extremely pleased with the support of our stakeholders and counterparties during this period and now believe, with today's signing of the ESSA with EnergyAustralia, that we have the basis to move forward to financial close of the Project.

The K2-Hydro project will be the first pumped storage hydro project in the National Electricity Market in almost 40 years, and the first to be developed under private ownership. It will create over 500 jobs during construction and deliver significant economic benefits to Queensland through providing reliable generation for the grid and applying downward pressure on wholesale electricity prices. We look forward to keeping the market informed as we progress toward financial close, and to commencing construction at Kidston later this year."


About Genex Power Ltd

Genex Power Ltd ASX:GNXGenex Power Limited (ASX:GNX) is focused on developing a portfolio of renewable energy generation and storage projects across Australia. The Company's flagship Kidston Clean Energy Hub, located in north Queensland, will integrate large-scale solar generation with pumped storage hydro. The Kidston Clean Energy Hub is comprised of the operating 50MW stage 1 Solar Project (KS1) and the 250MW Kidston Pumped Storage Hydro Project (K2-Hydro) with potential for further multi-stage wind and solar projects. The 50MW Jemalong Solar Project (JSP) is located in NSW and provides geographical diversification to the Genex Power Limited portfolio. JSP was energised in early December 2020 and commissioning is now underway. Genex is further developing its energy storage portfolio via the early stage development of a 50MW/75MWh standalone battery energy storage system at Bouldercombe in Queensland. With over 400MW of renewable energy and storage projects in development, Genex is well placed as Australia's leading renewable energy and storage company.

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Contact

Simon Kidston
Executive Director
Tel: +61 2 9048 8850
Email: sk@genexpower.com.au



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