Why the Genex (ASX:GNX) share price is up 5% today

The Genex share price shot up over 5% today. Here's a look at the new funding package Genex locked in with the Queensland Government.

Gretchen Kennedy

Gretchen grew up in a small Connecticut town where she learned to read The Wall Street Journal as part of the grade six enrichment program. She moved to Australia in 2002, earned a Master of Arts (Professional Writing) and went on to spend eight years writing on Wall Street. In June 2018, Gretchen returned to Australia and has since developed a keen interest in all things ASX. In December 2020, she started writing for the Motley Fool. Gretchen's usually writing something, reading a book or chasing her dogs around.

Published February 5, 2021 3:08 pm AEDT

The Genex Power Ltd (ASX: GNX) share price is up over 5.5% today and currently trading at 28 cents.

Genex Power is focused on developing a portfolio of renewable energy generation and storage projects across Australia.

The company's flagship Kidston Clean Energy Hub, located in north Queensland, will integrate large-scale solar generation with pumped storage hydro.

Hands holding light bulb and seedling plant, both in dirt — Image source: Getty Images

Genex share price pumps after company locks in funding

The Genex share price bumped up after the company confirmed that the Queensland Government is going to provide a $147 million funding package.

The funding will go toward the construction of a new 275kV single circuit, 185.9km transmission line from Kidston to Mt Fox, and a new substation at Mt Fox.

The new infrastructure will facilitate the connection of the company's Kidston Pumped Storage Hydro Project to the national electricity market.

Powerlink Queensland will build, own, and operate the project, which is expected to support over 400 new jobs during construction. The funding package will be advanced directly to Powerlink.

Positioning for future growth

Genex believes that the new transmission infrastructure will underpin fresh potential for future sustainable energy projects.

The company stated that the transmission line will facilitate the creation of a new renewable energy zone in north Queensland, which is a location that's abundant with strong wind and solar resources.

Genex CEO James Harding commented:

The Transmission Line will support not only our flagship Kidston Pumped Storage Hydro Project, but the broader Kidston Clean Energy Hub including the Kidston Stage 3 Wind Project and the Kidston Stage 2 Solar Project, with the creation of a new North Queensland Renewable Energy Zone.

The funding package announced today is $15 million more than the original $132 million package offered by the Queensland Government in September 2020.

Over the past 12 months, the Genex share price has climbed more than 28%.

Automatic Renewal

By taking up this offer, you will also be enrolled in our auto-renewal program, which is our way of making your ongoing subscription easier by ensuring uninterrupted service. Don't worry, though – you're not locked in, and can cancel your auto-renewal at any time before each 'anniversary' date without question or penalty.