The Genex Power Ltd (ASX: GNX) share price is up today following news of the company's Kidston Pumped Hydro Storage Project. Genex has secured all the financing it needs to go ahead with the project.
The Genex Power share price has had a poor month. At the time of writing, it's down 14% since this time last month.
However, today's news has given the Genex share price a much-needed boost. It's currently up 2.5%, trading for 21 cents.
Let's look closer at today's news from the renewable energy developer.
Kidston hydro storage project funding
This morning, Genex announced it's secured $660 million of financing to close contracts for its 250MW Kidston Pumped Hydro Storage Project.
The final piece of the financing puzzle was the $3 million variation deed to the loan note subscription agreement it secured from the Clean Energy Finance Corporation.
Prior to that, Genex had received a $610 million debt facility from the Northern Australia Infrastructure Facility.
It also secured a $47 million project grant funding agreement from the Australian Renewable Energy Agency (ARENA), the McConnell Dowell Constructors Pty Ltd and John Holland Group Pty Ltd. Combined with the forgiveness of $9 million of convertible notes previously issued to ARENA by Genex.
In conjunction with Genex's fully underwritten fundraising of $115 million in late March, the project is now fully funded.
Construction is set to commence this month.
More about the project
The Kidston Pumped Hydro Storage Project is a first-of-its-kind venture into hydro energy.
It is utilising the abandoned Kidston Gold Mine in Far North Queensland, making use of pre-existing mining accommodation and road access.
It will integrate Genex's 270WM Kidston Solar Project.
The company claims it will be able to generate, store and dispatch renewable energy on demand during peak periods.
Commentary from management
Genex CEO James Harding welcomed the progress, saying:
I would sincerely like to thank our financiers NAIF, ARENA and the CEFC, together with the Queensland Government, for their continued and longstanding support of Genex and the project, without which the realisation of this iconic project would not be possible.
We look forward to updating the market when we commence construction at the Kidston site toward the end of this month.
Genex Power share price snapshot
The Genex Power share price is having a particularly volatile time on the ASX of late.
It's up by 28% over the last 6 months, but down 6% year to date. It's also up 57% over the last 12 months.
Genex has a market capitalisation of around $158 million, with approximately 1 billion shares outstanding.
