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Genex hits another hurdle as Kidston finance delayed

Business

Genex will miss its September 30 deadline to stitch together financing for its $700 million Kidston hydro project in north Queensland.

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The company shares fell more than 4 per cent on the news.

It said it was still working with various stakeholders to conclude project financing and was in the final stages of negotiating with a company to take a 50 per cent stake in the project.

The Queensland Government had also reaffirmed its commitment of $132 million in transmission infrastructure to the project yesterday and the Northern Australian Infrastructure Facility had extended its offer of funding to January 31. The NAIF funding is conditional on reaching financial close.

“Genex continues to focus on closing out all workstreams to deliver financial close as soon as possible and will keep the market informed of its progress over the coming weeks,” chief executive James Harding said.

“We are pleased that the Queensland Government has reaffirmed their commitment of $132 million to help fund the construction of the Kidston pumped storage hydro project transmission line.

“The development … will create a peak workforce of over 500 people a year in regional Queensland, secure power supply to local communities and unlock significant clean energy generation in the region.”

The project plans to move water between two old gold mining pits as the base for its hydro project.

Genex has hit snags before that have held up its financing. Energy Australia eventually agreed to a 30-year offtake agreement from the project and NAIF has promised $610 million loan.

The hydro project is just part of the $1 billion plan for Kidston where it also has an operational solar farm. It is also developing a battery near Rockhampton.

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