- Genex Power would be receiving a $147 million funding package from Queensland government.
- The funding would be used to develop electricity infrastructural projects to provide more stable electricity to Queensland.
- Powerlink Queensland will be owning and operating the transmission line.
On 5 February 2021, Genex Power Limited (ASX:GNX) has announced that the government of Queensland is affirmative on providing a $147 million funding package towards the construction of a 275kv single circuit. It is a 185.9 km long transmission line (connecting from Kidston to Mt Fox) with a new substation at Mt Fox.
All these infrastructural developments would facilitate the Kidston Pumped Storage Hydro Project's connection to the national electricity market. The original funding package was worth $132 million, but today's announcement represents a $15 million increase from the original package.
Powerlink Queensland will be owning and operating the transmission line, and in due course of construction, additional 400 local jobs would be created. The entire funding would directly be transferred to Powerlink, and all the terms of the funding arrangement would be reflected in a Generator Connection and Access Agreement. This agreement would be executed between the hydro project and Powerlink as a part of the financial close process.
The transmission line would play a crucial role in connecting the Hydro project to the electricity market. It would also support the creation of new renewable zone on the back of its significant spare capacity. This energy zone would be located in the North of Queensland having abondance of solar resources and strong wind.
The transmission infrastructure would also help develop Kidston Clean Energy Hub which would include a connection between Kidston wind project and Kidston solar project.
Read More: Genex Power Secures Agreement With Powerlink
James Harding, CEO of Genex, expressed his happiness on receiving the $147 million funding package for this crucial infrastructural project. He also thanked the Queensland government for their support and expects to continue working together to deliver more electricity infrastructural projects.
He also acknowledged the creation of almost 500 new jobs for the project. The project aims to deliver a more stable electricity supply in Queensland and will play a crucial role in assisting Queensland to switch to 50 per cent renewable energy by 2030.
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Genex’s share price has closed at A$0.27 (as of 4 February 2021). The stock has been rallying for the last three months, delivering a return of 50 per cent. The one-year return stands at 35 per cent.