Genex has signed a Development Funding Agreement with Electric Power Development (J-POWER) to deliver the Kidston Stage 3 Wind (K3-Wind) Project in North Queensland.
The agreement further extends Genex’s strong relationship with J-POWER, Japan’s second largest provider of hydroelectric and wind power.
With over 1GW in their global wind portfolio including their projects under construction, J-POWER brings considerable global wind experience to the development of the Project.
The agreement provides J-POWER the opportunity to earn up to a 50 per cent interest in the K3-Wind Project through an initial funding contribution of A$1.5 million, which will be used to expedite the development of the project through monitoring, planning and other feasibility workstreams over the next 12-18 months.
The feasibility workstreams will allow project financing activities to be conducted, with construction anticipated to commence in 2022.
The development timeline will see the project connect into the new 275kV transmission line to be constructed, owned and operated by Powerlink Queensland for the Kidston Hydro Project (K2-Hydro), which is expected to be completed in 2023.
The agreement is subsequent to, and independent of, the signing of the Share Subscription Agreement with J-POWER for investment of up to A$25 million in Genex, executed in August 2020.
The agreement reaffirms the company’s strategic partnership with J-POWER as Genex continues to expand its portfolio of renewable generation and storage assets in Australia.
Genex CEO, James Harding, said, “Genex is very pleased to enter into this development agreement with J-POWER and thus continue to build the strong working relationship we have developed since 2019.
“With over 1GW in their global wind portfolio, J-POWER brings considerable global wind experience to the development of the Kidston Wind Project, which will be Genex’s first wind farm.
“The agreement provides Genex with access to J-POWER’s significant wind expertise alongside additional project level capital, and will enable us to expedite the project development activities with the aim of bringing it online shortly after our flagship Kidston Pumped Storage Hydro Project in 2024.
“The Project builds on the development of the Kidston Clean Energy Hub, with the existing 50MW Kidston Stage 1 Solar Farm already operational, and the K2-Hydro Project in the final stages of the financial close process.
“We look forward to working together with J-POWER on the project and providing the market with a further update on its development in the coming months.”