Genex gets US425mil loan for pumped hydro project

Genex gets US425mil loan for pumped hydro project

first_imgMELBOURNE: The Australian government is providing up to A$610miln (US$425mil) in cheap financing for Genex Power Ltd to build a pumped hydro project to help stabilise the country’s electricity grid.Pumped hydro energy storage is the one renewable energy technology strongly supported by Australia’s conservative government, which has come under fire for backing coal and failing to craft a broad energy policy to shore up the country’s shaky grid, cut emissions and lower prices.Pumped hydro acts like a giant battery, pumping water uphill when energy is abundant and releasing it to create power at night or on a windless day.Genex’s 250MW Kidston pumped hydro project is widely seen as a template for projects that could be developed all over Australia at old dams and mine sites. “We have been gaining momentum with this project over the last few months and are confident that … Genex will be in a position to reach financial close before Sept 30 this year,” Genex chief executive officer James Harding said in a statement.It had hoped to secure financing by June.Genex shares rose as much as 10% after the announcement and last traded up 4%, outpacing gains in the broader market .The loan will be provided by the government’s A$5bil Northern Australia Infrastructure Facility. The company still needs to finalise an agreement with the country’s third-largest energy retailer, EnergyAustralia, a unit of Hong Kong’s CLP Holdings, to buy power from the project and take a 50% equity stake in it.EnergyAustralia said the project has good potential to add flexible, low-emissions generation to its portfolio but was still working through technical design, market and transmission assessments and contract arrangements.“We’re encouraged by the project’s prospects, but, of course, there remains work to be done,” an EnergyAustralia spokesman said in emailed comments, declining to put a date on when its assessment would be completed.“There’s been no red flags that have been shown to us,” Genex executive director Simon Kidston told Reuters.Genex is also waiting for the Queensland government to approve plans to build a transmission line for the project. — Reuters Oil & Gas , Genex , hydro project Comics 1d ago Kee’s World – July 13, 2019 – Star2.com Related News Related Newscenter_img World 17 Apr 2019 Power play – pumped hydro eyes path through Australia’s climate wars Nation 11 Jul 2019 Dr M: Govt to look into fishermen’s grouses over Penang reclamation project Tags / Keywords: {{category}} {{time}} {{title}}last_img

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