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Genex to fast track Rockhampton battery project with new funds

Business

Genex will fast-track a battery project near Rockhampton after raising $21 million through a share placement.

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The battery will be the first of its type in Queensland, although AGL is developing a “behind the meter” battery at Wandoan using renewable energy.

The Genex project will take electricity from the grid and feed back into it at periods of high demand. It will also act to stabilise the grid.

Genex anticipates it could have the battery operating by the fourth quarter, next year.

The company raised the funds through a placement at 22 cents a share.

Genex director Simon Kidston said the funds would be predominantly for the battery but also for working capital and to get the Kidston hydro project to financial close next month.

Genex said the demand for its shares significantly exceeded the company’s placement capacity and it will now raise another $7 million through a share purchase plan for eligible shareholders.

The company has also recently raised $25 million from J-Power through a share sale.

Genex also has debt funding for the Kidston hydro project from the Northern Australia Infrastructure Facility which is conditional on it reaching financial close.

Genex chief executive James Harding said the company’s strategy was to grow cash flows from its expanding portfolio of diverse renewable energy and energy storage projects across Queensland and New South Wales.

“We are particularly excited about the development potential of the Como battery project in Queensland, with the funds raised from the placement and share purchase plan to be used to fast track the delivery of this strategy to potentially see it contributing to our revenues during the next calendar year.

“This capital raising is being undertaken alongside the previously announced financing strategy for the K2-Hydro project–with the equity requirement for this project to be funded via the proceeds of the SSA with J-POWER and existing cash reserves together with a direct project equity investment through a project equity partner.

“We envisage providing an update on the project equity process in the coming weeks, with financial close remaining on its targeted schedule during September 2020.”

Genex’s Kidston 50 megawatt solar farm is already in operation but it plans to use to disused mining pits from the old Kidston gold mine for its pumped hydro scheme.

It also has a 50MW Jemalong solar farm near Forbes in New South Wales.

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