November 13 (Renewables Now) - Genex Power Ltd (ASX:GNX) has been given more time to restructure the financing for its 250-MW pumped storage hydro project in Queensland after utility EnergyAustralia backed out of an off-take arrangement.
The Sydney-based power generation firm said in a bourse filing on Wednesday that the Northern Australia Infrastructure Facility (NAIF) Board has extended by seven months to June 30, 2020 its offer for AUD 610 million (USD 417.3m/EUR 379.3m) in long-term concessional loan funding for the project. The offer is still subject to a range of conditions precedent, including the finalisation of an up to AUD-132-million funding package by the Queensland government, but the extension is welcome news for Genex, which now aims to achieve financial close "as early as possible in 2020".
As announced earlier this month, EnergyAustralia informed Genex that it would not be able to finalise the off-take agreement for the project in the previously agreed form. The deal with the utility, as well as a grid connection agreement, are among the conditions for receiving NAIF financing. In addition to ti, Japan’s Electric Power Development Co Ltd, known as J-Power, is to invest up to AUD 25 million to cover the equity requirement for the project.
Known as K2-Hydro, the pumped storage hydro facility will be combined with a solar farm of up to 270 MW (K2-Solar), currently under development. Both projects are part of the Kidston renewable energy hub.
(AUD 1.0 = USD 0.684/EUR 0.622)