(photo courtesy Genex Power)Genex Power announced a new funding deal for its 250 MW pumped hydro project at Kidston and development of the up to 2 GW Bulli Creek solar and battery project.
The $44.5 million funding package was announced by Genex and J-Power, which has been collaborating with Genex on the Kidston Clean Energy Hub in Queensland since 2020, including through a previous $25 million investment commitment for K2-Hydro.
The Kidston pumped hydro project will repurpose two disused gold mine pits. Genex said it has undertaken extensive works to establish an underground main access tunnel at the Kidston site that will provide access to a powerhouse cavern being built 250 m below ground level. The main access tunnel will be 6 m wide and 6 m tall and will run for about 1.5 km to provide access to the main generation and pumping equipment. The powerhouse will contain two 125 MW Andritz reversible pump turbines.
This time around, J-Power has agreed to provide a loan facility of $35 million as additional standby source of funding for the eight-hour storage (2,000 MWh) pumped hydro project, to help ensure it remains on track for energization in 2024.
The hope is that the standby funds will not be needed, but Genex says that – after a September 2022 drilling incident that caused a water ingress and “modest delays” to works – they will act as “a significant buffer” to any further bumps in the road.
“While the costs of the water ingress event … have been fully funded, we consider it prudent that additional funding is secured against any further unforeseen events during the balance of the construction program,” said Genex Chief Executive Officer James Harding.
On top of the loan facility, J-Power will establish a joint development fund for Genex’s up to 2 GW of battery storage and solar capacity at the Bulli Creek project in Queensland’s Toowoomba region, where it plans first to build a 400 MW battery with two hours of storage.
The joint development agreement gives J-Power a 50% interest in Bulli Creek, through upfront acquisition funding of $2.5 million, and a further $6 million in upfront funding for third party development costs and $1 million to cover early costs of the project. Ongoing third party development costs for Bulli Creek will then be funded by both companies on a 50:50 basis.
The facility is secured against Genex’s equity interests in Bulli Creek and the Kidston wind farm.
“This funding will be instrumental in fueling the growth of our renewable energy portfolio in Australia,” said Harding. “The loan facility with J-Power gives us significant buffer to complete the construction of the [Kidston pumped hydro] project. In addition … the Joint Development Agreement for the Bulli Creek Project will allow us to fast-track development activities at this exciting project, which represents the next phase in the company’s growth.”
