Genex to back 250-MW Aussie pumped storage project with NAIF debt

K2-Hydro project site. Image by: Genex (www.genexpower.com.au).

July 11 (Renewables Now) - The Northern Australia Infrastructure Facility (NAIF) will provide up to AUD 610 million (USD 425.2m/EUR 377.3m) in debt for the 250-MW pumped storage hydro project in Queensland, known as K2-Hydro.

NAIF’s board has given final approval to a long-term concessional debt facility, Genex Power Ltd (ASX:GNX), the developer of the scheme, said on Wednesday. With NAIF’s financial support, the company now expects to reach financial close on the project in the third quarter of this year.

K2-Hydro, which is part of the Kidston renewable energy hub, will be integrated with a solar project of up to 270 MW (K2-Solar) that is currently being developed. Both components of the project are scheduled for commissioning in 2022. Genex has already signed a term sheet for a long-term energy storage services agreement with EnergyAustralia, which also owns 50% of K2-Hydro.

Japan’s Electric Power Development Co Ltd, known as J-Power, meanwhile, will invest up to AUD 25 million to provide the equity share needed by Genex and will also take a stake in the company. 

The investment decision for the NAIF finance is subject to the responsible Federal Minister’s legislative consideration, as well as conditions related to the finalisation of the Queensland government’s consideration of the project, Genex said.

(AUD 1.0 = USD 0.697/EUR 0.619)

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