I think it's a mistake to assume K2H has the same value to EA as the operator as it would to GNX.
What would Genex do with it? - make money from arbitrage on the open market? K2H is 8 hours generation, evening peak is 2 to 3 hours. What would they do with it the rest of the time? EA on the other hand is a behemoth that makes its money from large corporate PPAs. Many corporates want renewable energy PPAs that deliver firmed power. Thus K2H has great value to EA because it provides 100% renewable dispatchable power that it can use to firm corporate renewable PPAs. PPAs.
So I think that K2H is actually of more value to EA than GNX at this time, and EA may well be paying GNX more for the operating rights than GNX could reasonably expect to make if operating K2H into the merchant market by itself. So this is likely a win-win situation rather than a zero sum game. And as has been pointed out, a low-risk revenue stream will be a pre-condition for some of GNX's funding such as NAIF.
GNX Price at posting:
22.5¢ Sentiment: Buy Disclosure: Held
