The Genex Power Ltd (ASX: GNX) share price shot up 12% to 21.5 cents in early trade today, after the company signed off on a deal with green energy giant, Tesla Motors Australia Pty Ltd.
Shares in the Australian power generation company have since retreated to 20.5 cents apiece, up 7.89 cents at the time of writing.
Under the deal, Genex's Bouldercombe Battery Project, operating out of Rockhampton, Queensland, will integrate Tesla's real-time trading and control platform, Autobidder. The aim is to "optimise dispatch behaviour from the BBP, maximising revenue and operating efficiency".
Genex CEO James Harding called the news a "key milestone" in moving the project towards a financial close.
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Why is the Genex share price lifting?
Back in early October, the company announced that Tesla would supply 40 of its Megapack utility-scale battery energy storage systems (BESS) to the project, and would be warrantied for 20 years.
The agreement also states that Tesla "will provide a minimum level of contracted revenues to support project financing of the development of BBP", which will help push towards financial close.
Investors appear to welcome the news as Australia moves towards a greener, more renewable future.
Genex has promised that its portfolio of renewable power projects will provide clean energy to more than 350,000 homes by 2025, offsetting almost two megatonnes of CO2 per annum.
Here's how Genex has performed recently…
The Genex share price has appeared relatively stable over the past 12 months, up 7.89%.
It saw dips occurring in early April and towards the end of November — coinciding with the financing for the Kidston Pumped Hydro Storage Project (K2 Hydro), and the sudden sell of director Simon Kidston's shares just a few months later.
At the time of writing, Genex has a market capitalisation of around $219 million.
