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Genex stalls pumped hydro deal but construction expected before mid-year

Business

Genex has finished its due diligence of its $600 million Kidston pumped hydro project in north Queensland, which will start construction in the June quarter and create up to 500 jobs.

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The company said it had been anticipated to close the deal in the current quarter but “significant activity” among all the stakeholders meant it would now mean that would probably occur late in the quarter and financial close would occur in the second quarter.

Chief executive James Harding said that to cope with the shifting timetable it extended its dealing with EnergyAustralia over its offtake agreement and is in discussions to extend the sunset dates with J-Power over its share subscription.

“We have reached a critical point where all due diligence has been largely completed and our construction, financing and operational documentation is substantially agreed form,” Harding said.

The project uses two disused mining pits at the old Kidston gold mine, west of Townsville, to transfer water and create electricity. The company already has an operational 270 megawatt solar farm on site.

The hydro scheme would have a 250 megawatt storage and generation capacity and would feed into the grid at high demand points. About 500 jobs have been anticipated for the project.

Genex also has plans for a wind farm near the site.

 

 

 

 

 

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