Genex Power Limited announces that the board of the Northern Australia Infrastructure Facility (NAIF) has made an investment decision to offer finance to Genex’s Kidston Stage 2 Pumped Storage Hydro Project (K2-Hydro).
This financing involves the provision of a long-term concessional NAIF debt facility for up to $610 million.
“The Kidston Project investment represents just over 12% of NAIF’s total $5 billion facility,” said Laurie Walker, chief executive officer of NAIF. “Energy storage facilities have a significant role to play in Australia’s transition to a low emissions, low cost energy future. The project will provide Far North Queensland with 250 MW of firm, dispatchable energy, improving energy reliability while lowering transmission losses and electricity prices. The conditional support NAIF provided to the Project last year acted as a catalyst bringing confidence to Genex’s investment which unlocked other support for the project, helping move the project forward.”
The K2-Hydro project is part of the Kidston Renewable Energy Hub in far-north Queensland (Kidston Hub). The Kidston Hub is comprised of the operating 50-MW Stage 1 Solar Project (KS1), the K2-Hydro project and the multi-staged integrated solar project of up to 270 MW (K2-Solar) under development and the Kidston Stage 3 Wind Project of up to 150 MW under feasibility study.
“The decision by the NAIF Board in providing its Investment Decision approval is a further indication of the significance of Genex’s K2-Hydro project for northern Australia,” said James Harding, chief executive officer of Genex. “We have been gaining momentum with this project over the last few months and are confident that, given the status of discussions with the various relevant stakeholders in the project, Genex will be in a position to reach financial close before 30 September this year.”
More than 500 jobs will be created during the construction of this project and associated infrastructure, according to a press release.
Just last month, Genex signed a share subscription agreement with Electric Power Development Co Ltd, trading as J-POWER, for a conditional investment of up to AUD$25 million (US$17.5 million). The proceeds will be principally applied toward the K2-Hydro project.