Australian renewable energy developer Genex Power has signed agreements with Japanese energy company J-Power for a multi-million dollar financing package to support the delivery of its 2 GWh pumped hydro project in Queensland, Australia, and the development of the 2 GW Bulli Creek solar and battery project. .
Genex said the A$44.5 million ($29.63 million) structured finance package will be used to support the company’s flagship 250 MW/2 GWh Kidston Pumped Storage Hydro project in North Queensland and develop its multi-phase Bulli Creek solar and battery project. near Toowoomba.
J-Power, one of Genex’s largest shareholders following an A$25 million equity investment announced in 2019, has agreed to provide an A$35 million corporate loan facility as a source of standby funding for the 250 MW eight-hour pumped water project. .
Genex said the funding may not be needed, but after a drilling accident late last year that slowed construction, replenishing the project is considered prudent to ensure the project stays on track in 2024.
It is estimated that the event, which resulted in an unexpected release of water into the tunnel, added AUD 10-15 million to the cost of the project.
“While the cost of last year’s water entry event at the Kidston hydroelectric power station has been fully funded, we believe it is prudent to secure additional funding against any unforeseen events in the final stages of the construction programme,” Genex chief executive James Harding said. “J-Power’s loan agreement gives us a significant buffer to complete the construction of the project.”
In addition to the loan facility, J-Power will also establish a joint development fund for Genex’s Bulli Creek solar and battery project, which is expected to be developed in five phases. In the first phase, a 400 MW/1,600 MWh large battery will be delivered. while the second proposed phase would deliver a 475 MW to 675 MW solar project.
The joint development agreement gives J-Power a 50% interest in the project, upfront acquisition funding of AUD$2.5 million, and an additional $6 million in upfront funding for third-party development costs.
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