GNX (ASX) Battery Projects

Originally posted by Jayze87: ↑

Bouldercombe battery: Genex's first battery project

Currently we know that:
- Council approved.
- Land secured (Powerlink)
- Supplier selected (Tesla)
- Connection and GPS process well advanced.. (Powerlink/AEMO). (https://www.powerlink.com.au/news-media/understanding-connections-process)
- Funding discussions with potential lenders and strategic investor.

My Estimated timeframe:
To see the battery generating by June 30 2022 ("middle of next year" as stated by Simon) we would have to start construction no later than November 2021 based on the construction timeframe from the council application ~ 8 months. Simon mentions 9 months in interviews so the more realistic starting month would likely be October 2021. All going to plan, financial close should occur no later than Sept/Oct 2021.

- ARPIL 2021: "We’ve just got the approval from the council in terms of the development approval. We’re just finalising the construction contract. And we’ll look to commence construction before the end of the year. And doing so, that would see the asset completed and generating by the middle of next year (2022)." - SK (https://cqtoday.com.au/news/2021/04/16/introducing-genex-power/)
- "probably around nine months for construction" - SK (https://cqtoday.com.au/news/2021/04/16/introducing-genex-power/)

Construction and testing: (from Council Application)
- 32 weeks to be operational: Construction us expected to take 20 weeks with 12 weeks of testing. ~ 8 months. (Assuming the GPS is part of the testing.)

Council approval:
- Submitted Dec 2020 by AECOM on behalf of Genex & approved ~ April 2021
- Application: https://www.rockhamptonregion.qld.gov.au/files/assets/public/communities/planning-building-plumbing/development/public-notification/d139-2020-public-notification.pdfSize and supplier:
- "Project will sized at a maximumof 100MW/200MWh (2hrs depth)." (council submission)
- "The Project has been proposed to be constructed in a staged approach as follows .
· Stage 1 – 50MW/100MWh.· Stage 2 – 50MW/100MWh. (council submission)
- Although we now know that the first stage will be 50MW/75MWh.
- Quarterly ending dec 2020
https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02334506-2A1276909?access_token=83ff96335c2d45a094df02a206a39ff4

Tesla is the supplier - Mentioned multiple times by SK and quite obvious in the council application:

Cost, financing and revenue:
- Regarding cost "We’re just finalising those numbers. It will be something in that range, between $50 million and $60 million." - SK
~ $1 million per megawatt
- The intention is for a 50/50 JV Partner and finance.
- I do note that we are holding onto $25 million (~50% of the project cost) as 'general working capital' as we enter a phase that we could potentially be cashflow positive due to the addition of Jemalong cashflows. Possibly an Ace up the sleeve if we struggle with either the partner or the banks..? Although the return is expected to be ~20% so one would think investors/banks would jump at that..

Revenue is expected to be ~$10-11 million per year - SK (Presentation 17th March)
- Minus - <$1 million for Ops/Maint.
- Minus - Finance interest/repayments
- Minus - Assuming strategic investors 50% cut
- That likely leaves Genex around ~$4 million (Depending on interest/repayment costs/Agreement with strategic investor)

Potential Partners? (complete speculations):
- J-Power: Simon mentioned in his last interview that they were looking forward to working with Jpower on other projects.
- Owner of the future bouldercombe solar farm - a "European Utilities Giant" (see details below).
- Infigen - Shared linkedin connections between Genex staff and Infigen staff & same industry
- Energy Australia - Worked with on pumped hydro although given its going to be utilised on a merchant basis I doubt it will be a retailer/gentailer.
- Possibly a super fund or similar infrastructure investor.

Location:
- Land secured adjacent to Powerlink Substation in Bouldercombe under a 30 year leasing arrangement
- Where: 52949 Burnett Highway,Bouldercombe

Renewable projects proposed for Rockhamption: Interesting that there is also a proposed solar farm in Bouldercombe at the same location as the battery? Which was sold by Eco Energy World to a "European utilities Giant".
https://www.advancerockhampton.com.au/Industries/Renewable-Energy
https://reneweconomy.com.au/gladstone-approves-350mw-solar-farm-another-queensland-coal-centre-20569/
https://www.eew.solar/

Interestingly it looks like Eco Energy world has SOLD their solar farm... but to who..? "Renewables developer Eco Energy World has sold its 250MW Bouldercombe solar farm in Queensland to a “European utilities giant” https://ijglobal.com/articles/152863/eco-energy-offloads-bouldercombe / "a leading multinational renewable corporation.”https://renewablesnow.com/news/eew-sells-260-mwp-aussie-pv-project-to-unnamed-renewables-player-729315/ - Possible partner for the battery?

Opportunity for batteries in the NEM: Note: "5-Minute Settlement should be implemented
in the NEM and come into effect on 1 October 2021." - https://aemo.com.au/-/media/files/electricity/nem/5ms/program-information/2020/5ms-factsheet-updated-july-2020.pdf?la=en

Obtaining GPS - Generator Performance Standards
The process involves working with the network operator, or Network Service Provider (NSP), and AEMO. The project must gradually ramp up to a number of hold points, or a proportion of maximum power output. At each hold point, the generator must convince the NSP and AEMO that the power plant will not be deleterious to grid operation, which includes factors such as grid frequency and harmonics. The hold point testing process is referred to as R2 testing.https://www.pv-magazine-australia.com/2020/01/25/long-read-nothing-simple-about-gps/

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We should do another CR for 50% and 50% long term debt facility. Keep all the revenue. The only partner I would consider is J Power becasue they are alread together with us on Hydro. They seem a company of their word and don't try and strike a better deal in the final hour. We have experienced that! One thing thou if we go CR I prefer it to be ONLY available to current shareholders. No more cheap buy ins for outsiders.