GENEX ACHIEVES FINANCIAL CLOSE FOR THE 50MWAC JEMALONG SOLAR PROJECT & THE REFINANCING OF THE 50MWAC KIDSTON SOLAR ONE PROJECT

Genex Power Limited (ASX:GNX) (Genex or Company) is pleased to announce that it has successfully achieved Financial Close for the 50MWAC Jemalong Solar Project (JSP) in New South Wales and the refinancing of the existing debt facility for the 50MWAC Kidston Solar One Project (KS1), operating at the Company's Clean Energy Hub in Kidston, North Queensland.

Highlights:

o Project Financial Close achieved for JSP and refinancing for KS1;

o Execution of EPC and O&M Contracts with Beon Energy Solutions for JSP; and

o Commencement of construction for JSP.

The total debt funding package of $192m includes a senior loan facility and structurally subordinated HoldCo facility. The senior facility has been independently verified as a Green Loan and is the first Green Loan globally to be Certified under the latest internationally recognised Climate Bonds Standard v3.0. The 100MWAC Portfolio Financing includes the largest Certified Green Loan by an Australian renewable energy group.

Westpac Banking Corporation has been appointed as the Agent and Security Trustee for the senior facility.

Commenting on the debt funding package, Genex CEO, James Harding said:

"Genex welcomes the funding provided by the Clean Energy Finance Corporation, DZ Bank AG, Nord/LB and Westpac Banking Corporation. The 100MWAC Portfolio Financing includes the largest Certified Green Loan by an Australian renewable energy group. Genex is now in a strong position to grow earnings from its portfolio of renewable energy assets."

Commenting on the HoldCo facility, Clean Energy Finance Corporation (CEFC) CEO, Ian Learmonth said:

"This transaction consolidated the strong working relationship with Genex, which began with the CEFC's investment in the Kidston Renewable Energy Hub near Townsville in 2017. Our first investment with Genex was in the Kidston Solar One Project - an innovative project that was the first of its kind in Australia to co-locate a large-scale solar farm with a large-scale pumped hydro storage project.

It is great to support Genex in utilising the strong base of the Queensland Government contracted Kidston Solar One Project to build another new solar farm in New South Wales. The clean energy generated by the Jemalong Solar Project will provide more electricity capacity to the grid as it prepares for the upcoming retirement of coal powered generation."

Execution of EPC and O&M Contracts:

Genex is also pleased to announce that it has successfully executed an Engineering, Procurement and Construction (EPC) Contract and an Operation and Maintenance (O&M) Contract with Beon Energy Solutions (Beon) for JSP.

Beon is one of the leading EPC companies in Australia for large-scale solar projects, with experience amounting to more than 500MW, of which approximately 290MW is under construction. Beon is a subsidiary of Victoria Power Networks Pty Ltd and has a successful model for the delivery of renewable energy and infrastructure projects founded on safety, reliability, quality, cost-effectiveness, sustainability and community engagement.

Following Financial Close and the execution of the EPC and O&M Contracts, construction has now commenced for JSP. It is anticipated that construction will occur over a 12-month period, with operations/first cash flow in Q4 CY 2020.

Commenting on Beon's appointment, Genex CEO, James Harding stated:

"Genex is very pleased to enter into the EPC and O&M contracts with Beon, who have a strong history of renewable energy construction in Australia, complemented by their in-house expertise in grid connection, commissioning and electrical works. We look forward to continuing an excellent relationship with Beon throughout the construction and operation of the Jemalong solar farm and as we look to expand our portfolio of assets over the coming years."

Project Summary:

JSP will produce ~129,450MWh (P50) per year, providing enough electricity to power more than 23,000 Australian homes entirely with renewable energy, and offsetting ~106,500t of CO2 per annum, which is equivalent to removing ~29,000 cars off Australian roads. Genex will sell the energy generated from JSP into the National Electricity Market (NEM), collecting the spot-price (i.e. merchant revenue profile), allowing JSP to collect revenue in the form of the sale of electricity and the sale of Large-scale Generation Certificates (LGCs). JSP has an operational asset life of 30 years and utilises well-known tier-one equipment suppliers to enhance generation and longevity.


About Genex Power Ltd

Genex Power Limited 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.

     

Contact

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



Link: Financial Close for Jemalong and Kidston Solar 1 Refinancing


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