At a glance
- Company
- Genex Power Ltd
- Ticker
- ASX: GNX
- Announcement
- Partnership
- Location
- Queensland, Australia
Key figures
- Kidston Stage 3 wind project capacity
- 258-MW
- Stanwell share of generation
- 50%
- Stanwell PPA term
- 15-year
- EnergyAustralia share of generation
- 30%
Products and programs
December 13, 2023 -- Australia’s Genex Power Ltd (ASX:GNX) has secured a power purchase agreement (PPA) for half of the output of its 258-MW Kidston Stage 3 wind project (K3W) in Queensland.
The 15-year deal was signed with Brisbane-headquartered electricity and energy solutions provider Stanwell Corporation, Genex said in a bourse filing on Friday. The contract calls for Stanwell to buy 50% of K3W’s generation at a fixed price, plus the large-scale generating certificates.
The agreed price is subject to annual escalation based on changes in the consumer price index, with an annual cap. A condition precedent for the new deal is the financial close of the K3W, which is expected to be achieved by December 31, 2024, Genex said.
The PPA with Stanwell adds to another contract with EnergyAustralia Pty Ltd, which in October committed to procuring 30% of K3W’s output. With the two PPAs in place, Genex will start working on the project’s debt funding and will aim to take a final investment decision in 2024.
K3W is part of the Kidston Clean Energy Hub, which includes a 50-MW operational solar park and a 250-MW pumped storage hydro project. The site was also planned to house a 270-MW solar park (Kidston Stage 2 Solar) but its development will no longer be pursued as Genex will use the remaining available capacity of a new 185-km transmission line and related network infrastructure.
K3W is being developed by Genex in a 50:50 partnership with Japan’s Electric Power Development Co, operating as J-Power.
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Questions around this news
What does Stanwell’s power purchase agreement for the Kidston wind project cover?
The 15-year agreement covers half of the Kidston Stage 3 wind project’s electricity generation. Stanwell will buy that output at a fixed price, with annual price adjustments linked to the consumer price index and subject to a cap. The arrangement also includes the project’s large-scale generating certificates.
Who else has agreed to buy electricity from the Kidston wind project?
EnergyAustralia agreed in October to procure 30% of the project’s output. Together, that agreement and Stanwell’s contract cover portions of the project’s generation. Genex said it would begin work on debt funding and aim to make a final investment decision in 2024.
What needs to happen before the Stanwell agreement takes effect?
Financial close for the Kidston Stage 3 wind project is a condition precedent to the agreement. Genex expected financial close by December 31, 2024. After securing the two power purchase agreements, the company said it would work on debt funding and target a final investment decision in 2024.
What other energy projects are part of the Kidston Clean Energy Hub?
The hub includes an operating solar park and a pumped storage hydro project. A further solar park, Kidston Stage 2 Solar, had been planned, but Genex said it would no longer pursue that development. The company intends to use the remaining capacity of a new transmission line and associated network infrastructure instead.
