GENEX ACHIEVES FINANCIAL CLOSE FOR THE 50MWAC JEMALONG SOLAR PROJECT & THE REFINANCING OF THE 50MWAC KIDSTON SOLAR ONE PROJECT
Financial Close for Jemalong and Kidston Solar 1 Refinancing
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."
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 (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