With revenue ramping up and the development of its Kidman solar energy and longer term pumped hydro project tracking well, Genex Power now has an option to add a wind farm to the project.
The company has received an exclusive land option under a binding heads of agreement with local landholders to develop a wind farm of up to 150 MW as Stage 3 of its Kidston Renewable Energy Hub in north Queensland.
The company said the project suits the naturally elevated topography along an escarpment about 21 kilometres long. The project would proceed after the 270 MW Stage 2 solar farm and the 250 MW pumped hydro dam. It is subject to an up to 18 month feasibility study including transmission requirements to connect into the National Electricity Market.
The K3-Wind Project is Genex’s fourth project in its development pipeline and construction would not proceed until 2020 with operations commencing in late 2021. If it goes ahead, the wind farm would add significant generation capacity as well as extend the daily time frame in which Genex could generate energy. Combined with the pumped hydro, this could potentially enable the despatch of renewable electricity 24 hours a day 7 days a week.
Having three renewable energy sources at the one site would be a world first development of integrated solar, wind and pumped storage hydro technology, said Genex.
Meanwhile, the company has appointed a new chief executive, James Harding, who has been its executive general manager since June 2016. Genex said Mr Harding has 25 years of experience in the electricity sector, has delivered major projects all over the world, and was instrumental in the successful delivery of the 50 MW Kidston Stage 1 Solar Project on time and within budget.
The company’s co-founder and previous managing director, Michael Addison, is now a non-executive director.
Teresa Dyson has been appointed an independent non-executive director. She is a former partner with a major law firm and has experience in project finance, mergers and acquisitions, tax and the electricity sector. She is also non-executive director of Energy Queensland, a director of Seven West Media, Energy Super, and Power & Water Corporation.
Non-executive chairman, Dr Ralph Craven said Genex is transitioning to an energy infrastructure company and so the board has strengthened its skills in project finance, energy retailing and commercial management.
The ramp up of revenue from the Stage 1 Solar Project which commenced December last year reached a cumulative $8.3 million by the end of June. Revenue for June was $1.3 million. June generation was 9,619 MWh and cumulative generation from December to June was 57,286 MWh.
The Stage 2 solar project and pumped storage hydro project are targeted to reach financial close later this year with construction to commence soon after.
The financials have been helped with the Northern Australia Infrastructure Facility (NAIF) approving a term sheet for a concessional debt facility of up to $516 million for Kidston Stage 2.
Genex is still an early stage company. But its growing generation and revenue, and the addition of the wind farm as another large potential project, make the company’s future prospects look bright and add to the company as an attractive long term investment. This is underpinned by management’s development vision and its ability to deliver its first project on time and budget. If this smooth delivery can be repeated with the upcoming projects, it is hard to believe that investors will not be impressed.
Nor have the shares disappointed so far. Listing at 20 cents in July 2015 they are currently around 30 cents. (ASX: GNX).