Genex Power has launched an AUD115m (US$87m) equity raise to complete financing of the 250 MW K2 pumped-storage hydropower project in Kidston, Queensland (Australia). In August 2020, the Japanese power utility J-Power reached an AUD25m (US$19m) agreement with Genex Power to finance project. Under the agreement, J-Power is expected to acquire a 19.99% stake in Genex Power’s enlarged share capital. The Northern Australia Infrastructure Facility (NAIF) will also lend AUD610m (US$465m), while the Australian Renewable Energy Agency (ARENA) has approved AUD47m (US$35m) in grant funding.
The company, which was seeking a partner to fund the AUD777m (US$590m) project in return for a 50% stake, decided to continue the process on its own. Construction is expected to start in April 2021. K2 Hydro is tied to a 270 MW solar project (K2 Solar) and to a 150 MW wind project that are currently under development. Both projects are part of the Kidston renewable energy hub where a 50 MW solar park is already producing electricity.