Quarterly Update and Appendix 4C
Kidston Stage 1 50MW Solar Project (KS1):
- Revenue of $2.27M for the quarter; and
- Generation of 32,273MWh.
- Completion of a $21.5m capital raising to reach financial close for the Jemalong Solar Project;
- Net cash position at quarter's end of $25.06M;
- Shareholder approval for the issuance of shares to J-POWER and the appointment of JPOWER'S nominee, Mr Kenichi Seshimo as a director upon financial close of K2-Hydro; and
- Release of 2019 financial year Annual Report.
Kidston Stage 2 Pumped Storage Hydro Project (K2-Hydro):
- The Northern Australian Infrastructure Facility (NAIF) board approved investment decision to offer finance for K2-Hydro of up to $610M through a long-term concessional NAIF debt facility (refer ASX announcement 11 July 2019);
- The announcement by the Queensland Government to provide funding of up to $132M in funding towards the construction of the 186km single-circuit transmission line from Kidston to Mount Fox (refer ASX announcement of 4 September 2019). The Queensland Government's announcement completes the loan criteria extended by NAIF and represents the key outstanding external funding requirement to complete the project financing and commence construction; and
- The final step to complete the funding stage for K2-Hydro and commence the construction stage is the conversion of the non-binding term sheet with EnergyAustralia into a binding agreement, which is anticipated this quarter.
Jemalong 50MW Solar Project (JSP):
- Financial close on track for this quarter with construction on track to commence shortly thereafter; and
- First revenues on track for late CY2020.
Commenting on the Company's activities and performance in Q1 2020, Genex CEO, James Harding, stated:
"The development of the Kidston Stage 2 Pumped Hydro Project was significantly de-risked during the September quarter. The decision by NAIF to provide funding to the K2-Hydro project reflects the significance of the project, both in terms of investment into regional Queensland and the ability of the project to help Queensland meet its renewable energy targets.
We would like to thank the Queensland Government for their ongoing support of the project. The Government's funding for the construction of the Project Transmission Line will connect the project to the Queensland grid and unlock the ability for the company to develop additional stages for the Kidston Clean Energy Hub, including up to 270MW of additional solar and up to 150MW of wind.
With our funding packages almost complete, the Company is about to enter the next phase of its growth with the development of K2-Hydro and the Jemalong Solar projects with financial close for each targeted for the current quarter. The construction of these projects will position Genex as a diversified clean energy company".
Genex is in a strong position to deliver on its growth ambitions. The Projects are positioned to deliver clean, renewable power helping the country 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. In the current quarter, the Company is continuing to focus on the development of its projects.
Key outlook areas include:
- KS1: continued focus on steady state operational performance supported by a long-term revenue contract provided by the Queensland State Government;
- K2-Hydro: on track for financial close Q4 CY2019. The final stage of the process is the conversion of the EnergyAustralia non-binding Energy Storage Services term sheet into a binding Agreement; and
- JSP: financial close and construction expected to commence this quarter.
About Genex Power Ltd
Genex Power Limited (ASX:GNX) 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.
Genex Power Ltd