Australia’s Genex Power Ltd (ASX:GNX) has secured a power purchase agreement (PPA) with Stanwell Corporation for its 258-MW Kidston Stage 3 wind project (K3W) in Queensland. Under the 15-year deal, Stanwell will purchase 50% of K3W’s generation at a fixed price, along with the large-scale generating certificates. The agreement is subject to an annual escalation based on the consumer price index, with an annual cap. Genex expects the financial close of K3W to be achieved by December 31, 2024, as a condition precedent for the new deal. The PPA with Stanwell complements an existing contract with EnergyAustralia Pty Ltd, which committed to procuring 30% of K3W’s output in October. With both agreements in place, Genex will move forward with project debt funding and aims to reach a final investment decision in 2024.
K3W is part of the Kidston Clean Energy Hub, which already includes a 50-MW operational solar park and a 250-MW pumped storage hydro project. While a 270-MW solar park called Kidston Stage 2 Solar was initially planned for the site, Genex has decided not to pursue its development. Instead, the remaining available capacity of a new 185-km transmission line and related network infrastructure will be utilized. The K3W project is being developed by Genex in collaboration with Japan’s Electric Power Development Co, operating as J-Power.
The agreement with Stanwell represents another significant milestone for Genex in advancing its renewable energy projects. By securing two PPAs, Genex demonstrates its ability to attract reputable partners and solidifies its position in the Australian clean energy market. With the Kidston Clean Energy Hub expanding and the wind project’s development progressing, Genex is making significant contributions to Australia’s renewable energy goals.
The partnership with Stanwell underscores the growing demand for renewable energy in Australia, as well as the increasing role that off-takers play in supporting large-scale wind projects. Both Genex and Stanwell are committed to sustainable energy solutions, and their collaboration will contribute to a greener and more resilient energy sector in Queensland. By utilizing wind power, Genex and its partners are harnessing the abundant natural resources available in the region and accelerating the country’s transition towards a low-carbon future. The Kidston Stage 3 wind project is expected to make a substantial contribution to Queensland’s renewable energy capacity and propel the state closer to its clean energy targets.
Genex’s achievement in securing the PPA with Stanwell demonstrates the company’s strong track record and ability to deliver on its projects. As Genex moves forward with the final investment decision for the Kidston Stage 3 wind project, it sets a positive example for the renewable energy sector in Australia and highlights the potential for further growth and investment in the industry. By unlocking the vast potential of wind energy in Queensland, Genex is positioning itself as a leader in the transition to a more sustainable and carbon-neutral future.
In conclusion, Genex Power’s partnership with Stanwell Corporation to secure a power purchase agreement for the Kidston Stage 3 wind project marks another significant milestone for the company. With the project advancing, Genex is making substantial contributions to Australia’s renewable energy goals and driving the transition to a greener and more sustainable energy sector. Through its collaborations and achievements, Genex reinforces its position as a key player in Australia’s clean energy market and sets a positive example for the wider industry.
