Half Yearly Report and Accounts
Sydney, Feb 25, 2022 AEST (ABN Newswire) - Genex Power Ltd (
ASX:GNX) is a public company listed on the Australian Securities Exchange (ASX)-(trading under the code 'GNX'), focused on developing a portfolio of renewable energy generation and storage projects in Australia. Genex's diverse portfolio includes pumped storage hydro, large-scale batteries, wind and solar across Queensland and NSW. The Company's flagship Kidston Clean Energy Hub (depicted below), located in north Queensland, will integrate large-scale solar generation with pumped storage hydro and potentially wind energy. The Kidston Clean Energy Hub comprises the operating 50MW Kidston Stage 1 Solar Project and the under construction 250MW Kidston Pumped Storage Hydro Project, with potential for further multi-stage wind and solar projects.
Financial highlights
- KS1 generated 57,457MWh, an 8% decrease on the prior corresponding period (1H FY2021: 62,447MWh);
- JSP operation commenced, generating 57,051MWh (1H FY2021: not operational);
- Revenue and other income of $11.96m, an increase of 51% versus the prior corresponding period, was driven by the JSP completing construction and operating at full capacity for the entire period;
- Net loss before tax of $4.41m, driven by the depreciation of the enlarged portfolio of completed construction assets (1H FY2021: ($3.37m)); and
- Cash and cash equivalents as at 31 December 2021 of $36.6m, excluding term deposits/bank guarantees, leaves the Consolidated Entity well positioned to continue to progress the construction of K2H, the development of BBP to financial close and the advancement of the K3W project at the Kidston Clean Energy Hub.
During the period, the Company made significant progress on the construction of the flagship K2H project. Major construction milestones reached during the period included:
- Completion of site establishment activities, including:
o Completion of the airstrip upgrades to facilitate fly-in-fly-out operations for construction personnel;
o Completion of refurbishment works for the Oaks Rush Accommodation Village, including new facility buildings and a 450-bed camp expansion; and
o Completion of site infrastructure upgrades including communications, power and water supply;
- Completion of onsite aggregate crushing plant and concrete batching plant;
- Successful completion of hydraulic model tests for the 2 x 125MW turbines to be used for the project;
- Completion of clearing and earthworks for the two onsite switchyards;
- Completion of the blast magazine storage area and access road; and
- Completion of the main access tunnel (MAT) portal face stabilisation and underground tunnelling preparation works.
Subsequent to period end, the engineering, procurement and construction contractor for K2H reached the significant milestone of commencing the underground works with the start of the MAT excavation works (refer ASX Announcement dated 21 January 2022). The MAT is a 1.5km long decline tunnel which will be utilised as a construction and permanent access to the underground powerhouse cavern.
As at the date of this report, the K2H project remains on schedule for energisation in Q2 FY2025 and within budget.
During the period Genex also significantly advanced the development of the BBP, the first standalone large-scale battery project in the Company's portfolio, with the following major milestones achieved:
- Execution of a Supply Agreement with Tesla Motors Australia Pty Ltd (Tesla) for the supply of its Megapack 2.0 battery modules (Supply Agreement) (refer ASX Announcement dated 1 October 2021);
- Receipt of approval from the Australian Energy Market Operator (AEMO) of the generator performance standards for the BBP (refer ASX Announcement dated 7 December 2021);
- Execution of an Autobidder Offtake Agreement with Tesla, under which Tesla will operate the BBP with its Autobidder algorithm-based technology and guarantee a minimum level of revenues, with upside sharing (refer ASX Announcement dated 9 December 2021);
- Execution of a Bi-directional Service Provider Connection and Access Agreement for the BBP with Powerlink Queensland (refer ASX Announcement dated 23 December 2021).
Subsequent to period end, Genex made significant advancements of the BBP toward financial close through the execution of a Loan Note Subscription Agreement with Infradebt Pty Ltd (Infradebt) for a $35m senior debt facility for the project (LNSA) and completion of a capital raising by way of a $40.0m placement to institutional and sophisticated investors (Capital Raising) (refer ASX Announcement dated 23 February 2022). Concurrent with the Capital Raising, Genex announced the launch of a $10.0m share purchase plan to allow shareholders to participate in the Capital Raising. The proceeds from the Capital Raising and the SPP will be used to finance the construction costs of the BBP alongside the funds available under the LNSA, repayment of $3.0m of an existing facility with the Clean Energy Finance Corporation, the costs of the issue and for working capital purposes.
*To view the full Half Yearly Report, please visit:
https://abnnewswire.net/lnk/947H1852
About Genex Power Ltd
Genex Power Limited (ASX:GNX) is focused on developing a portfolio of renewable energy generation and storage projects across Australia. The Company's flagship Kidston Clean Energy Hub, located in north Queensland, will integrate large-scale solar generation with pumped storage hydro. The Kidston Clean Energy Hub is comprised of the operating 50MW stage 1 Solar Project (KS1) and the 250MW Kidston Pumped Storage Hydro Project (K2-Hydro) with potential for further multi-stage wind and solar projects. The 50MW Jemalong Solar Project (JSP) is located in NSW and provides geographical diversification to the Genex Power Limited portfolio. JSP was energised in early December 2020 and commissioning is now underway. Genex is further developing its energy storage portfolio via the early stage development of a 50MW/75MWh standalone battery energy storage system at Bouldercombe in Queensland. With over 400MW of renewable energy and storage projects in development, Genex is well placed as Australia's leading renewable energy and storage company.
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