June 6 (Renewables Now) - Electric Power Development Co Ltd, known as J-Power, will buy up to AUD 25 million (USD 17.4m/EUR 15.5m) of stock in Australia’s Genex Power Ltd (ASX:GNX) to support the latter’s 250-MW K2 pumped storage hydro project in Queensland.
The parties have signed a share subscription agreement, calling for J-Power to make a conditional equity investment in Genex, which will entitle it to no less than 15% and no more than 19.99% of Genex’s enlarged share capital, the Sydney-based power generation firm said in a bourse filing on Thursday.
Genex intends to use the proceeds from the stake sale to cover a portion of the equity funding needed for the construction of the Kidston Pumped Storage Hydro Project (K2-Hydro), which is part of the Kidston renewable energy hub. The facility 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 is developing the project through a 50/50 partnership with EnergyAustralia and expects to reach financial close on K2-Hydro in the middle of this year. Under the agreement, J-Power will deliver some technical advisory services in relation to the development and operational stages of K2-Hydro.
J-Power’s subscription is conditional on the K2-Hydro’s financial close before end-2019 and a facility agreement between the project entity and the Northern Australia Infrastructure Facility (NAIF). It also needs approval from Genex’s shareholders.
(AUD 1.0 = USD 0.697/EUR 0.621)