Firstly, I'd expect the market announcement prior to opening on Monday. Apologies if it feels underwhelming hearing it from me but this deal was signed after-market and I work fast.
J-POWER have acquired 50% of our K2 150MW Wind Farm, reducing the need for dilution or further loans on our part. This is an intelligent and necessary move, as our gearing will be high over the coming five to ten years with K2H, JML, KS1, BBP. Construction will commence in 2022, with the project energised to align with K2H, in 2024. I'm very supportive of the move - it is important we get the Kidston pipeline moving so we can realistically bid for new projects, across Australia.
As expected, the results so far of the feasibility studies have been more than conclusive - there's an excellent wind resource in the area. I am yet to understand the size of the equity investment by JPOWER, but the project is roughly a $270mn-$300mn build, so this will assist in fast-tracking the project to financial close, in 2021.
For those who may be unaware, the new K2H transmission line is required for K2W. This should give us some insight into J-Power's position on K2H's prospects. The timing of this is not lost on me, with Genex negotiating with Powerlink for line rental costs. This varies the line % responsibility attributable to K2H, and lowers our need for further debt negotiation with NAIF.
Not a bad day @baldynumbers@strangelogic - this is why shareholders pay for the best. News release below.
Concluding Memorandum of Understanding on New Wind Power Development with Australia Genex-Australia's First Renewable Energy Project-November 27, 2020
Electric Power Development Co., Ltd.Electric Power Development Co., Ltd. (hereinafter, J-Power, Headquarters: Chuo-ku, Tokyo, President and CEO: Hajime Watanabe) is a renewable energy company in Australia (hereinafter, Australia) Genex Power Limited. , Hereafter, Genex) has signed a memorandum of understanding regarding the development of a new wind power project in Australia. The purpose of this memorandum is to utilize J-Power's knowledge of wind power cultivated in Japan and overseas and Genex's ability to develop renewable energy in Australia, and to promote the development of this project in cooperation with both companies. This project will be J-Power's first renewable energy project in Australia.Including Australia, J-Power will continue to work on further expansion of overseas power generation business including renewable energy.
GNX Price at posting:
17.5¢ Sentiment: None Disclosure: Held
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