Receives Lender Credit Approval for Jemalong and KS1
The facility, to be provided by a syndicate of three banks, compromises DZ BANK, NORD/LB and Westpac Banking Corporation (Westpac). NAB's Financial & Equity Advisory team is acting as Financial Advisor to Genex.
With the ongoing operation of KS1, which achieved practical completion in late 2018, Genex now expects to be able to refinance the existing debt package for KS1 to secure more advantageous financing terms given the now lower risk profile. By combining the financing of JSP and refinancing of KS1, Genex has been able to structure the financing of JSP on a fully merchant basis. JSP is forecast to be operational in Q4 CY 2020, which will allow the Company to generate merchant revenues in New South Wales at attractive forecast prices over the coming years as a result of major generator closures, whilst also giving the Company flexibility to secure a power purchase agreement on competitive terms independent of the financing process if the opportunity presents itself.
Commenting on this achievement of another significant milestone for the Company, CEO of Genex, James Harding stated:
"As a result of banks confirming credit approvals, JSP is now ready to commence construction, subject to the finalisation of project and financing documentation, which is expected to occur over the coming weeks. We wish to thank the lenders and the Company's advisors for their support to date and look forward to working together over the coming months and years."
JSP will produce ~128,700MWh 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 (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