Genex Power Limited has signed a A$25 million Share Subscription Agreement with Electric Power Development Co Ltd trading as J-Power, with the investment to be used towards construction of the Kidston pumped storage hydro project (K2-Hydro).
The agreement provides for the appointment of a J-Power nominee director to the Board of Genex, and is subject to several conditions including approval of of Genex shareholders, execution of a Facility Agreement between the K2-Hydro project entity and the Northern Australia Infrastructure Facility (NAIF), and financial close for the project by 31 December 2019.
As part of the agreement, Genex has also agreed to enter into a Technical Services Agreement (TSA) with J-Power wherein the latter will provide certain professional technical advisory services to Genex in relation to the development and operational stages of K2-Hydro.
“Genex is pleased to announce this exciting partnership with J-Power. J-Power are a global expert in hydroelectric projects, including pumped storage, and as such they bring significant experience and technical expertise to Genex to support in the delivery of the K2-Hydro project,” commented James Harding, CEO of Genex. “The investment by J-Power is an important milestone, as it secures the funding required for Genex’s equity component for K2-Hydro, which is being developed in a 50:50 partnership with EnergyAustralia. We are continuing to progress the final stages of the project financing with all relevant stakeholders, with financial close remaining on track for mid-2019.”
