Genex to fast-track 1.6GW solar project as foundations complete for first big battery

Bouldercombe battery foundations waiting for the batteries. Photo: Genex.

Renewable energy and storage developer Genex Power says foundations for its first big battery project are complete and awaiting the delivered of the Tesla Megapack batteries, as it looks to accelerate the solar component of an even bigger battery project in south west Queensland.

Genex is the owner of two operating solar farms in Queensland and NSW, but is looking to rapidly expand its portfolio in coming years with the addition of the Bouldercombe battery, the Kidston pumped hydro project, new wind and solar at Kidston, and the development of the Bulli Creek battery and solar precinct.

In a market briefing on Monday, Genex CFO Craig Francis said the concrete foundations for the 50MW/100MWh Bouldercombe battery have been finished, and the Tesla Megapack batteries are currently being shipped to Australia, and are due to arrive by the end of March.

The Bouldercombe battery will be the second utility scale battery to be opened in Queensland, after the bigger 100MW/150MWh Wandown South big battery that opened last year.

It is due to be switched on by the end of June and will result in a big lift in Genex revenues under a unique “fixed and floating” contract with Tesla that guarantees minimum returns and a share in the upside when the battery cashes in on volatile markets and price spike.

An even bigger revenue boost will occur when the landmark Kidston pumped hydro project – 250MW and eight hours of storage – begins operations by the end of 2025. That project is underpinned by a long term, inflation linked off take agreement with EnergyAustralia.

Genex says it has solved some geological hurdles at the site, located in a former open pit gold mine, by re-routing some proposed tunnelling. That will result in a cost over-run of up to $15 million, but the company insists the timeline is still on schedule.

Francis also said the company is looking to accelerate the solar component of the huge 2GW battery and solar precinct at Bull Creek. It intends to build a 400MW, two hour battery at the site, but says interest in the big solar components has been very strong.

“We thought the solar opportunity might be more medium term,” he told the conference call. “But it’s become very clear that for large scale renewables there is very, very strong demand indeed.

“So we’re looking to accelerate the solar portion of the project. And we’re now working hard on optimizing design layouts for sequenced staging of solar and battery phases of the project. And we’ve also kicked off procurement processes for those projects.

“We think there’ll be a single standalone battery 400 megawatts (with two ours storage) and up to 1.6 gigawatts of solar taking up the rest of the project.”

The big projects on the immediate development pipeline include the Kidston wind project, which has recently been expanded to 258MW (from 200MW) thanks to additional available capacity on a new transmission line being built by Powerlink,

Genex says the wind output profile, more at night and less during the day, fits in well with the overall Kidston project, and could help leave an opportunity for other 270MW of solar to the existing 50MW solar facility.

The company says the company is also looking at battery storage in NSW, where it operates the 50MW Jemalong solar farm near Dubbo. It says it has a strong relationship with Tesla, but is also open to discussions with other technology providers.

Genex had been subject of an approved but conditional 23c a share takeover offer from shareholder and IT billionaire Scott Farquhar and the US-based Skip Capital, but the offer was withdrawn in late December. Genex shares last traded at 16c a share. Farquhar remains a shareholder.

 

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