Genex has announced it has entered into a sale and purchase agreement for the acquisition of the 50MW Jemalong Solar Project development (JSP or Project), located near Forbes in the central west region of NSW.
According to Genex, the acquisition is complementary to the company’s existing solar and hydro power projects in North Queensland and reflects their aim to become one of the market leaders in renewable energy and storage development. Genex’s longer-term strategy is to expand its portfolio of assets and diversify into other regions within the NEM.
Genex say the project is well-advanced with all necessary land and development planning approvals secured and significant progress made towards finalising the grid connection works.
During the due diligence process, Genex say they have consulted with several financiers to inform its financing strategy for the project. As a result, Genex intends to finance construction either on a solely merchant basis given the strong NSW price forecasts, or under a potential offtake arrangement with the final financing decision to be made closer to financial close.
Genex Power CEO James Harding said: “As a result of the strong revenues earnt to date from the company’s 50MW Kidston Solar Project (KS1), we are able to utilise our cash reserves to diversify our project portfolio into NSW and create a stronger revenue pipeline. The Kidston Stage Two Pumped Storage Hydro and Solar Project remains the principal focus of the company, and we continue to make significant progress towards finalising the remaining components necessary to achieve financial close. The Jemalong Solar Project offers a good opportunity to create a step change up in revenue and both expand and diversify the company’s portfolio as we complete the development of stage two at Kidston.”
Image sourced from Shutterstock: cc Valentin Valkov