The Genex Power Ltd (ASX: GNX) share price is rising today following the release of the company's Kidston Hydro Project update. During late afternoon trade, the Genex share price is up 2.04% to 25 cents.
Let's take a look at what the power generation and renewable energy storage company reported.
What did Genex announce?
The Genex share price is on the rise today after the company reported a positive update regarding its flagship 250MW Kidston Pumped Storage Hydro Project.
In its release, Genex advised that development and financing activities associated with the project are well advanced. This follows the final investment decision (FID) delivered by the board in late December 2020.
The company stated that final due diligence is nearing completion, with construction, financing, and operations documentation mostly in agreed form.
However, Genex noted that it has revised its schedule and expects that contractual close will be accomplished in late March. In addition, financial close and the commencement of construction at the site is expected to follow early in the second quarter of 2021.
To accommodate the altered timetable, Genex secured an extension of its energy storage services agreement with EnergyAustralia.
In further news impacting the Genex share price, the company revealed it is currently in discussions with Japan's Electric Power Development Co. Ltd (J-POWER) about an agreed postponement of its share subscription agreement and technical services agreement.
Words from the CEO
Genex CEO James Harding commented:
We have now reached a critical point where all due diligence has been largely completed and our construction, financing and operational documentation is in substantially agreed form. As such, we are pleased that we have today secured the necessary extension from EnergyAustralia to align with our revised timeline for Contractual Close this quarter, and commencement of construction early next quarter.
We are thankful for the ongoing support of EnergyAustralia, and also our broader stakeholder group including the Northern Australia Infrastructure Facility, Queensland State Government and the Australian Renewable Energy Agency, for their continued support as we work toward financial close.
About the Genex share price
The Genex share price has gained 25% since this time last year. The company's shares dropped to a low of 8.4 cents in March, and have surged more than 170% since then.
Based on the current Genex share price, the company has a market capitalisation of around $130 million.
