Originally Posted by
silu
Key Points of the announcement today:
Genex signs long term Energy Storage Services Agreement (i.e. Offtake) and equity investment Term Sheet with EnergyAustralia (EA) for the Kidston Pumped Storage Hydro Project (K2-Hydro).
EA is one of Australia’s leading energy retailers with around 2.3 million electricity and gas customers across eastern Australia.
EA and Genex will jointly complete development of K2-Hydro.
EA will have full dispatch rights which will underpin all revenues and support a long-term concessional loan from NAIF.
EA will provide new equity which will result in a 50:50 joint venture in the K2-Hydro project with Genex.
The Term Sheet is a strong endorsement from EA of the attractiveness of the Project in the current environment of increasing penetration of renewable energy, and the need for corresponding firming capacity.
Key milestone to allow construction to commence in H1 2019.
Term Sheet provides a period of exclusivity to allow completion of final due diligence, long form documentation, final grid connection and final EA Board approval.